Dutch oil tycoon and banker John Deuss is to be held in custody for two weeks while Police in his homeland quiz him about an international tax scam.

A judge at the Hague District Court ordered yesterday that the multimillionaire businessman, who has lived in Bermuda for more than 30 years, be detained for a further 14 days following his arrest last Friday when he arrived in the Netherlands for questioning about alleged irregularities at his First Cura?ao International Bank (FCIB). Dutch national prosecution spokeswoman Valentine Hoen said the decision was made during a closed court session.

She said Mr. Deuss had not been formally charged with any crime. The 64-year-old denies any wrongdoing.

Dutch and UK authorities are investigating FCIB?s alleged involvement in a tax swindle known as carousel fraud which robs governments in Europe of billions of dollars in tax each year.

Carousel fraudsters export and re-import goods, such as cellular phones, using front companies to dodge ?value added? sales taxes. They then sell the goods and siphon off the sales tax payments into secret accounts instead of giving them to the government.

Prosecutors froze FCIB?s assets last month on suspicion that hundreds of millions of dollars of illegal tax gains had been stashed in accounts there by fraudulent traders.

They also believe the Caribbean-based bank, on the Netherlands Antilles island of Cura?ao, operated without a licence.

Mr. Deuss, of Shore Lane, Tucker?s Town, returned voluntarily to Holland under police escort last week after waiving his right to an extradition hearing. Police here had earlier held him in custody for three nights on an international warrant after which he was released on $10 million bail by a magistrate.

The warrant listed allegations of money laundering, handling stolen property and being in charge of a criminal organisation.

Earlier this month, Bermuda Commercial Bank (BCB), of which FCIB is the largest shareholder, announced that Mr. Deuss was resigning as its chairman, along with board member Tineke Deuss, his sister, and bank president Timothy Ulrich. All three are directors of FCIB. BCB is now seeking a buyer.