Jersey returns over 1.3 billion euros to Italy

Monday 12 June 2017

A four year financial crime case has resulted in the repatriation of over a billion euros of Italian funds held by Jersey trusts both in the island and in Zurich.

Since May 2013 Jersey’s Attorney General has been working with the Milan Public Prosecutor’s Office in connection with what was said to be a “complex” criminal investigation in Italy into the affairs of Italian Steel magnate Mr Adriano Riva, his now deceased brother Emilio Riva, and others.

Dr Francesco Greco, Dr Stefano Civardi and Dr Mauro Clerici of the Milan Prosecutor’s Office, who led the Italian investigation throughout, extended their thanks to the Attorney General and said: “The return of Euros 1.33 billion to the Italian territory aimed at finalizing environmental rehabilitation of the industrial site at Taranto represents an outstanding result that has been made possible only thanks to the intense, loyal and effective international cooperation with the Bailiwick of Jersey and the Federal Republic of Switzerland.”

The Italian investigation centred upon the sale of shares in the Italian company Ilva, which owns a large steelworks, and other companies at below market value to companies under the control of Mr Riva and others, the subsequent re-sale of such companies and placement of the sale proceeds in overseas trusts.  

Extensive evidence gathering is said to have taken place in Jersey, involving the trustees of a number of Jersey trusts holding substantial assets. The evidence gathered by the Attorney General was subsequently sent to Italy to assist the Italian prosecutors in a collaboration effort the Attorney General says demonstrates the Islands’ “staunch commitment” to fighting financial crime.

The Attorney General, Robert MacRae QC, said: “This exceptional case of close collaboration with the Italian authorities once again demonstrates Jersey’s staunch commitment to fighting the most serious financial crime. It is particularly pleasing to note that the substantial funds which are to be returned to Italy are to be used to rectify serious pollution issues, safeguard jobs and improve the lives of local workers and their families.”

On 24 May 2017 a plea bargain was reached as Mr Riva agreed to repatriate to Italy funds totalling just over 1.3 billion euros held by the Jersey trusts in accounts in the Island and in Zurich, Switzerland.

The funds returned to Italy will be invested in the Ilva steel plant thereby revitalising the economy of Taranto by safeguarding or creating thousands of jobs for local residents. The money will also be used to address serious pollution issues.

His Excellency Mr Pasquale Terracciano, Italian Ambassador to the United Kingdom said: “The effective bilateral collaboration with the Jersey authorities, following my first visit in 2015 and the fruitful contacts of the past years, has led to a successful result that benefits the citizens of the city of Taranto and further strengthens the ties and co-operation between Italy and Jersey.”