Auditors from PricewaterhouseCoopers will pass information on customers holding accounts with the failed Bank of Credit and Commerce International to a US court, following a High Court decision published this week.
The action heard before Mr Justice Rattee resulted from an action brought in the US by First American Corporation, which sought evidence from PwC to prove whether BCCI had dressed up payments for acquiring shares in First American’s holding company, Credit and Commerce American Holdings, as loans to nominees who bought shares on its behalf.
First American was itself put out of business by BCCI’s collapse.
The American subpoena put PwC in a dilemma which could only be resolved by the High Court – disclosing the information would breach its duties of confidentiality to its audit client BCCI and those of the bank’s customers.
The judge decided that PwC’s duty of confidentiality was overridden by public interest in seeing the US proceedings brought to a successful conclusion, which could result in further recoveries for BCCI depositors.
In presentations to the court, Deloitte & Touche, the bank’s UK liquidator, consented to PwC breaking any confidence it may have owed Deloittes.
Andrew Tyrie airs views on the Finance Bill, 'Making Tax Policy Better' report, and Brexit
In our latest managing partner Q&A looking towards 2017, CVR Global's Richard Toone talks about recruitment, and the potential threat of competition from the legal sector, as key issues for the firm in the coming year
Deloitte to avoid tendering for government contracts over the next six months, to appease Theresa May following consultant's report that painted a less-than-flattering picture of Brexit plans
In our first Q&A looking towards 2017, Menzies senior partner Julie Adams flags up increasing digitisation, aligned with more hands-on consultative services, as the key mix for her practice