Switzerland orders banks to freeze accounts of Liberian leader

SWITZERLAND has ordered local banks to freeze accounts belonging to Liberian President Charles Taylor and his associates after a request from the UN-backed war crimes court in Sierra Leone, the government said yesterday.

The Justice Ministry said it had ordered banks in Zurich and Geneva to block accounts of people named by the Special Court for Sierra Leone, which says Mr Taylor was one of the main perpetrators of crimes against humanity and war crimes during the country’s civil war. He was indicted on June 4.

The request for assistance, which was made last week, affects Mr Taylor, his relatives, members of his government as well as various business people and companies, the ministry said.

Mr Taylor is accused of giving military and financial support to two rebel groups in neighbouring Sierra Leone and aiding their attacks on the population between 1996 and 2001.

The ministry said Mr Taylor received uncut diamonds in return and invested the proceeds from the diamond sales in a number of countries, including Switzerland.

The ministry said that after an initial investigation and a temporary block on the accounts, the Swiss federal prosecutor would decide whether to give the information to the Special Court for Sierra Leone and formally freeze the assets. It said it had no information on how much money was involved.

Swiss banks have fought in recent years to fend off a reputation as a haven for ill-gotten gains, arguing that dirty money is only found due to tough rules and reporting regulations.

Nigerian dictator Sani Abacha squirrelled away an estimated $2.2 billion during military rule, much of it held in Swiss banks. The government is currently waiting to freeze Iraqi accounts held in Swiss banks.