Ansbacher bank goes on sale for around £100 million

ANSBACHER Bank, which was been at the centre of one of the longest-running tax investigations, has been put up for sales by its owners.

According to the South African bank First Rand Group, it has decided to sell the Cayman Islands-based Ansbacher because it no longer fits in with its expansion plans, and believes it will perform better in the hands of new owners.

“We are evaluating a range of possibilities for the business, including finding a strategic partner who can facilitate and support Ansbacher's international expansion plans,” said First Rand chief executive Laurie Dippenaar in a statement.

Although he put no price tag on Ansbacher, it could fetch a price of close to £100 million.

The company did not elaborate on the reason for the sale, but said it would stick by its commitment to the Ansbacher management team in the ongoing investigation into the Ansbacher accounts by the Revenue Commissioners.

It is more than a year since the long-awaited report into Ansbacher was published. It disclosed that close to 200 people held Ansbacher accounts.

However, it is important to bear in mind that a finding that any particular individual is a client of Ansbacher, is not a finding the person has evaded tax.

The Minister for Justice, Michael McDowell, is attempting to recoup the €3.6 million cost of the Ansbacher investigation.

The report concluded that there was some evidence to suggest that the Irish-related business might have breached certain parts of the tax.

First Rand purchased the Henry Ansbacher Group in 1988. The Ansbacher (Cayman) operation, formerly known as Guinness Mahon Cayman Trust (GMCT), formed the centre of the Ansbacher investigation.

Mr Dippenaar said: “The Irish Revenue authorities have written to Ansbacher (Cayman) Limited, and as a consequence the company and its advisers have entered into a process of engagement with them.

"Based on independent professional advice received, the directors [of First Rand] are of the opinion that there is no reliable basis on which a liability for tax, if any, may be estimated.

“It is, however, recognised that the Irish Revenue authorities may take a contrary view,” he said.

“A preliminary application will be heard on 16 December 2003. Ansbacher (Cayman) Limited has a number of compelling arguments against the points raised in the application,” he added.