THE Middle East arm of Deloitte and Touche is being sued by a Dubai-based investment group after it failed to spot money laundering at a now defunct Lebanese bank.
Shareholders in the now defunct Lebanese Canadian Central Bank (LCB) have filed a claim against Deloitte and Touch Middle East and its managing partner Josepg El Fadl which alleges negligence in their financial and anti-money laundering audit of LCB, Reuters reports.
LCB was shut down following an investigation by the US ederal Bureau of Investigations and Drug Enforcement Administration. In 2001, a US Treasury report said the bank’s accounts were used “extensively by persons associated with international drug trafficking and money laundering” as a result of “management complicity”.
Deloitte acted as the bank’s auditors from 1995 until its liquidation, and remains its auditor in liquidation.
“Deloitte has not been served (as per DIFC regulations) with the claim you refer to and as such we cannot comment on such allegations put forward by the claimants,” Deloitte said in a statement.
“Additionally, our confidentiality obligations towards our client (the bank) as well the relevant regulator(s), prevent us from any comment on this matter. We are confident that we have served our client with highest degree of integrity and professionalism, and we stand by the quality of our work.”
Richard Oddy, Casper Kaars Sijpesteijn and Rory Goldthorpe have been appointed to senior roles in key sectors of high growth, with a further 17 junior and experienced hires
Richard White, Nicola Westbrooke and Richard Ross all join from KPMG, where they oversaw the real estate tax practice
Sheryl Davis joins the firm's High Wycombe office from Barnes Roffe
The appointments have been made across the VAT, audit and international tax teams