Banks face legal action over bogus accounts

IRISH bank customers who claim they were advised to set up bogus non-resident accounts have begun legal proceedings against a number of financial institutions.

It is the first time a legal case has been mounted to hold banks partly responsible for defrauding the State of an estimated €1 billion in lost tax income.

While the Revenue Commissioners have clamped down on individuals naming and shaming them, in addition to imposing substantial fines no bank official has ever faced action.