An investigation by legal authorities in Holland and Curaao into suspected money laundering activities of First Curao International Bank (FICB) has forced John Deuss, Tineke Deuss and Timothy Ulrich to step down temporarily from the board of Bermuda Commercial Bank.

FICB, a significant shareholder of Bermuda Commercial Bank (BCB), is suspected of banking without a permit of the Bank of Netherlands (BNB) and illegal banking by some of FICB's clients.

John Deuss, Tineke Deuss and Mr. Ulrich who serve as directors of FCIB have advised the board of the directors of BCB of their intentions to temporarily step aside from their responsibilities as directors and officers of BCB until this matter is resolved.

John Deuss also serves as Chairman and CEO of BCB and Mr. Ulrich is president and chief operating officer of BCB.

Last Thursday the Detective Cooperative Team (RST) raided the FICB office complex in Zeelandia where the Fiscal Inquiries and Investigation Service FIOD-ECD searched an office and a house in the Dutch Berg en Dal, near Nijmegen.

Legal banking is only possible in the Netherlands with a permit of the DNB, the Dutch Central Bank. FCIB is not only being suspected of illegal banking, but also of possible fraud with the sales tax.

The investigation is done on the authority of the Functional Office of the Public Prosecutor with headquarters in The Hague.

Considering the phase which the investigation is currently in, no further information can be given.

A raid was also conducted in Curaao at the offices of the FICB and at the offices its Dutch administrative services provider in Holland.

At a meeting held on the evening of September 7, the Board of Directors of BCB appointed Dr. Clarence Terceira as Acting Chairman and Mr. John Sainsbury as Acting President, until the matter is resolved and Mr. Ulrich and the Deuss' resume their normal duties.

A statement from Bermuda Commercial Bank said: "FCIB has at all times conducted its business in accordance with applicable laws and regulations and maintains strict anti money laundering policies and procedures. FCIB is also fully cooperating with authorities in this matter.

In response to questions, the Monetary Authority spokesperson said the BMA "is aware of the investigations currently in progress in other jurisdictions regarding the First Curaao International Bank (FCIB)", and it has been in "direct contact" BCB management.

The BMA also considers the directors' relinquishing their responsibilities on the BCB board during the investigation "appropriate".

The spokesperson added: "Although the two institutions have separate and distinct business, this will ensure that those individuals will have no management role in BCB while the facts in this matter are established."

"The Authority will maintain direct liaison with the BCB's management and Board in the interim period to ensure the bank continues to conduct its business prudently. The Authority will also be maintaining appropriate contact with other relevant agencies involved in this matter."

From the website of the Bank of the Netherland Antilles, it appears that FCIB does have a permit of the Antillean Central Bank.

It is a so called "non-consolidated international bank" and is included in the category "institutions permitted to conduct the business of an international credit institution."

Dutchman Johannes or John Deuss is the owner of FCIB and First Curaao International Bank NV has been active since June 1973. It is a so called offshore bank that does not operate locally, but only internationally.

John Deuss is also a commissioner of FCIB. The other two commissioners are Mr. Ulrich from Staten Island, New York and Lucius Halley, born in St. Maarten and living in Curaao.

First Curaao International Finance Company NV went into liquidation on October 11, 1996.