Legal
UK Investigates Liechstenstein Over Defence Contract Bribe Claim

The UK’s Serious Fraud Office is investigating whether secret accounts in Liechtenstein were used by BAE Systems, the UK defence equipment company, to make payments to the Saudi prince at the centre of a £43 billion ($84.7 billion) arms deal, the Times newspaper reported. The SFO said its investigation into BAE’s alleged bribes for a Saudi jet fighter contract remained closed - although it confirmed it was actively looking at cash paid in relation to BAE contracts involving at least six other countries. However, a spokesman said he could not discuss details of any “letters of request” it had sent to the authorities in Liechtenstein asking for help in pursuing its investigation into secret BAE payments to bank accounts in the tiny principality. The letters to the country’s chief prosecutor are understood to request information about large sums of cash paid by BAE to a number of prominent individuals. Sources said they allegedly included Prince Bandar bin Sultan, the former Saudi ambassador to Washington, although the SFO yesterday specifically declined to comment on this, the Times said. Bandar is said to have received a total of £1 billion from BAE in connection with the Saudi arms deal. He has repeatedly denied any impropriety over the payments. The suggestion that the SFO believes some of the alleged BAE payments may have been channelled through Liechtenstein underlines the growing concern among British authorities about use of the tiny Alpine state for tax evasion and money laundering by wealthy individuals.