A senior official working for an AIB bank branch in a Co Cork town was questioned for 12 hours yesterday by fraud squad detectives before being released without charge later last night. A file will be forwarded to the Director of Public Prosecutions. The bank official, who has been suspended, was questioned specifically about allegations that his branch was used to launder money from a tax evasion building fraud operated by Irish sub-contractors in Australia.
It is further understood that the Criminal Assets Bureau has used its powers under the Proceeds of Crime Act to freeze two bank accounts, in Cork and Dublin, which may be connected with the case. Sources suggested that as much as £6 million could be involved. This is believed to be the first occasion on which a bank official has been arrested under the Criminal Justice Act 1994, which gives the Garda extra powers to trace monies linked to illegal activities.
An AIB spokeswoman said it would not be appropriate for the bank to comment on a Garda investigation, but that the it complied fully with the Criminal Justice Act in relation to money-laundering.