Tanzania: 99 Tanzanians Reported to Stash Over Sh200 Billion in Swiss Bank

NINETY nine Tanzanians own 114 million US dollars (over 200bn/-) stashed away in 286 bank accounts in just one bank in Switzerland, a cache of leaked documents from the Swiss arm of the HSBC bank shows.

The findings follow a massive cache of leaked data that revealed how the Swiss banking arm of HSBC, the world’s second-largest bank, helped wealthy customers conceal billions of dollars of assets.

However, while the report says not all the money is illegitimate, the findings are likely to trigger various governments all over the world to carry out investigations into some of the account owners, given the nature of the revelations that have pinned to bank for having engaged in impropriety.

The report has highlighted cases like tax evasion, bribery and non-declaration of account owners in home countries. According to the new International Consortium of Investigative Journalists investigation on leaked files from the bank, 99 clients are associated with Tanzania and that 20 per cent have a Tanzanian passport or nationality.

Among them, it shows that the maximum amount of money associated with one client connected to Tanzania was $20.8m (37bn/-).

It shows that around two accounts were opened in 1988; around two to five accounts were subsequently opened each year respectively until 2000.

Over 20 accounts were opened between 2000 and the same number of accounts was opened each year until 2006 and beyond.

Some details show that all bank accounts remained active since they were opened. However, the bank accounts became most active at the start of 2003. Some 60 bank accounts remained active through 2006 and beyond.

In its brief snapshot, the report further reveals on Tanzania that some 20 clients owned $0.6m, 8 clients owned $1.2m, 8 clients owned $1.8m, 5 clients owned $3.6m, 4 clients owned $7.2m and 4 people owned $9m.

Some 60 accounts were linked to individuals, 20 accounts linked to offshore companies while 20 accounts were just numbered. It shows that 91 client accounts were opened between 1982 and 2006 and linked to 286 bank accounts.

The leaked files, based on the inner workings of HSBC’s Swiss private banking arm, relate to accounts holding more than $100 billion from over 100,000 bank accounts from individuals and companies from all over the world.

In the findings, globally, Tanzania is ranked number 100 among the countries with individuals with the largest dollar amounts in the leaked Swiss files but it comes out at number 19 out of the 43 African countries with individuals having the highest amount of money stashed away in the accounts.

While the report shows that some people who own bank accounts at the bank have the money acquired legitimately, it also discloses that other clients may be linked to international crime, corruption and tax avoidance.

But the report says that there are legitimate uses for Swiss bank accounts and trusts and do not intend to suggest or imply that any persons, companies or other entities included in the ICIJ Swiss Leaks have broken the law or otherwise acted improperly.

The investigation notes that how the offshore banking industry shelters money and hides secrets has enormous implications for societies across the globe. However, so far, the report has not specifically revealed to the public most names or companies owning the cash therein.

Apart from Tanzania on the list, other African countries include Chad ($120.7m), Sudan ($131m), Madagascar ($146.3m), Republic of Congo ($166.5m), Democratic Republic of Congo ($179.8m), Senegal ($188.6m), Cote d’ Ivoire ($190.5m) and Nigeria ($266.6m).

Others are Zimbabwe ($272.2m), Liberia ($287.9m), Seychelles ($5.6.4m), Libya ($522.9m), Tunisia ($554.2m), Kenya($559.8m), Algeria($671.1m), Eritrea ($699.6m), Morocco ($1.6bn), South Africa ($2.6bn) and Egypt ($3.5bn).

The files – obtained through an international collaboration of news outlets, including the Guardian, the French daily Le Monde, International Consortium of Investigative Journalists – reveal some interesting key findings.

Other key findings were that the bank repeatedly reassured clients that it would not disclose details of accounts to national authorities, even if evidence suggested that the accounts were undeclared to tax authorities in the client’s home country.

It also points out that the bank employees also discussed with clients a range of measures that would ultimately allow clients to avoid paying taxes in their home countries.