Millionaire oil tycoon John Deuss has resigned as chairman of Bermuda Commercial Bank (BCB) in the wake of an investigation by European authorities into another bank owned by him.

BCB announced yesterday that the Dutch businessman ? who is wanted for questioning by prosecutors in the Netherlands ? had permanently stepped down.

Bank president Timothy Ulrich has also resigned, as has board member Tineke Deuss, who is understood to be Mr. Deuss? daughter.

All three are directors of First Cura?ao International Bank (FCIB), which has had hundreds of millions of dollars frozen and is under investigation by Dutch authorities.

They suspect that fraudsters have used Caribbean-based FCIB, the largest shareholder in BCB, to stash money gained from an elaborate tax scam known as a carousel fraud.

A statement issued by BCB said the bank?s day-to-day operations were not expected to be affected by the resignations.

Senior Vice President Dominique Smith, who is in charge of those operations, could not be contacted for comment yesterday.

The announcement was welcomed by Bermuda Monetary Authority (BMA), which said in a statement that the resignations were ?appropriate under the present circumstances?.

Credit rating agency Fitch also said it viewed the resignations positively but said it believed the legal issues and investigations surrounding 64-year-old Mr. Deuss, a long-term Bermuda resident who has an office in Flatts, put a strain on BCB?s business reputation.

Sources within the Island?s financial fraternity told that the resignations were in the best interests of Bermuda.

?It?s the reputation issue for Bermuda,? said one unnamed source. ?One doesn?t want as a jurisdiction to be associated with this kind of investigation.?

Mr. Deuss denies any wrongdoing on the part of FCIB or any of his other companies.

His whereabouts are not known and his lawyer Mark Pettingill would not comment on the resignations. Earlier in the week, Mr. Pettingill fought unsuccessfully to have the warrant for his client?s arrest put on hold.

He said Mr. Deuss would not be contacting Police in Bermuda himself as they had indicated a clear intention to arrest him.

Attorney General Larry Mussenden would not comment yesterday on how the authorities here were assisting Dutch prosecutors.

But the BMA said it had maintained direct contact and ongoing discussions with BCB?s board of directors and management regarding the FCIB investigation.

It added in a statement: ?The BMA acknowledges that BCB has not been implicated in any way in the events surrounding FCIB, and that BCB has entirely separate lines of business from FCIB.

?The BMA has always sought to ensure that a strict separation of business between both institutions was maintained and that BCB complied with Bermuda?s long-established and effective Know Your Customer and anti-money laundering regime.

?The BMA continues to have direct discussions with the board and management of BCB to ensure that the interests of BCB customers are, and continue to be, protected.?

Meanwhile, Fitch yesterday downgraded BCB?s ratings and said that there was near-term potential for further adverse events and publicity.

?While the bank?s balance sheet remains highly liquid with satisfactory capacity to meet its financial obligations, the company?s overall funding flexibility and margin of safety have been reduced,? it said.

It gave BCB an individual rating of ?C? which means it is regarded as an adequate bank which possesses one or more troublesome aspects.

Fitch?s definition for its ?C? rating states: ?There may be some concerns regarding its profitability and balance sheet integrity, franchise, management, operating environment or prospects.?