• Register
Return to: Home > News > Advisory > Former Deloitte Middle East managing partner brought into LCB terrorist money laundering case

Former Deloitte Middle East managing partner brought into LCB terrorist money laundering case

The Dubai International Finance Centre Courts, Court of Appeal (DIFCC) has added former Deloitte Middle East managing partner El Fadl to a case against Deloitte Middle East in relation to its audits of the Lebanese Canadian Bank which closed in 2011.

Criminality at the Lebanese Canadian Bank was uncovered in an investigation by the US FBI and Drug Enforcement Agency (DEA), which found the bank and its management played a ‘key role’ in facilitating money laundering Hezbollah-controlled organisations.

Pension investment fund Nest Lebanon and other claimants were 24% shareholders in Lebanese Canadian Bank when it closed and brought a case against Deloitte Middle East for negligence and deceit in its audit of the bank.

The claimants allege that Deloitte Middle East and El Fadl breached their duties as auditors and that they failed to uncover or report any money laundering and suspicious activity at the bank. It is alleged that El Fadl and Deloitte Middle East, over a period of several years, issued audit reports that were not accurate and misrepresented the reality.

Deloitte Middle East attempted to avoid the claim against it on technical grounds, but in February 2018 the DIFCC ruled against Deloitte Middle East’s attempt to strike out the claim. In November 2018 the DIFCC ruled the claim could be brought in the DIFCC applying principles of Lebanese law

El Fadl also initially attempted to avoid the claim against him, arguing the court had no jurisdiction over him. The claimants then applied to add him to the claim under the court’s procedural rules, which the court granted.

The DIFFC said that the claimants should have the opportunity to sue El Fadl as ‘he is the central character in the case made against DTME’ and because he was ‘the individual responsible for the audits as the relevant partner’.

Top Content

    Nigeria: building compliance and engagement

    Opportunities created by regulatory and legislative changes in Nigeria are tempered by the fragile state of the economy, although practitioners are generally confident that conditions will improve over the next few years if appropriate steps are taken. Paul Golden reports.

    read more

    Ghana: a quest for consistency

    Ghana’s current economic profile would suggest a fertile landscape for purveyors of accounting services. But inconsistent approaches to compliance and application of standards – coupled with problems in the banking sector and consequent liquidity constraints – have created a challenging environment. Paul Golden writes.

    read more

    Drone technology: audit takes to the skies

    The movement towards a digitised era has already impacted the auditing profession in a number of ways, from blockchain to artificial intelligence. Now firms are taking to sky and using drone technology in their audits. Mishelle Thurai speaks to Big Four firms to find out more.

    read more

    SBC: a new alliance joins the market

    Jonathan Minter speaks to Paul Tutin, chair of founding firm Streets Chartered Accountants, about why the business and its European partners took the decision to launch their own association.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.