CHERIE’S RANK HYPOCRISY (TWO) PART

MPs call for probe into Mrs Blair’s law firm and HSBC over alleged money laundering

MPs last night demanded a formal investigation into Cherie Blair over allegedly corrupt payments from the repressive Maldives government.

There were also calls for an inquiry into HSBC’s role in the murky deal.

The demands came after the Mail revealed yesterday how Mrs Blair’s legal firm received at least £210,000 for its work for the tax haven’s autocratic president from a suspected conman and terrorist who is now an international fugitive.

The payment landed in Omnia Strategy’s HSBC account in September last year after being approved by the bank.

The legal watchdog is understood to be looking into the case following the revelations, although a formal investigation has not yet been launched.

Firms subjected to a full probe by the Solicitors Regulation Authority can be reported to the Crown Prosecution

‘It shows appalling judgment’

Service and Serious Fraud Office, or hit with fines and formal reprimands.

Law firms have strict legal requirements to report suspicious activity which may indicate money laundering, and to verify the identity of clients and the source of funds.

Banks also have to comply with strict rules to ensure they are not being used by corrupt states, criminals, terrorists or drugs gangs to launder money.

HSBC was fined £1.1billion in the US in 2012 for laundering billions of pounds for Mexican drugs cartels and rogue states.

Any further breach could result in the bank losing its US licence to operate.

Tory MP Nigel Mills, chairman of the All-Party Group on AntiCorruption, said the Maldives case appeared to highlight what money laundering rules were supposed to stop.

‘Law firms need to make more detailed checks before undertaking work for such persons... it should have aroused suspicions and been reported to the UK authorities,’ he said. ‘If Omnia have not complied with their obligations, there should be serious sanctions for the firm as a whole and for the individuals involved.

‘There is no excuse for professional firms not complying with the money laundering rules, and any competent individual would have realised this was a risky situation and should have taken great care before proceeding.’

Fellow Tory MP Andrew Bridgen said Mrs Blair’s firm should be interviewed by the authorities.

‘It would appear that Cherie Blair’s firm may have breached the money laundering rules through the payments it received,’ he said. ‘There are certainly questions to be answered.’

Steve Goodrich of Transparency International UK, which campaigns against money laundering, said: ‘ These are serious allegations that need to be investigated. Regardless of where the money came from, UK firms should not be involved in laundering the reputations of corrupt and repressive regimes.’

John Glen, Tory MP for Salisbury, called Mrs Blair’s conduct ‘outrageous’ and ‘indefensible’, saying there was no reason why she needed to take work from the repressive Maldivian regime.

‘Her willingness to take this case shows appalling poor judgment,’ he said. ‘I hope Mrs Blair will return the money.’

Mrs Blair’s firm earned £2,000 a day representing Abdullah Yameen, the president of the Maldives, who has jailed more than 1,700 opposition activists. Yameen seized power following the 2012 overthrow of the country’s first democratically elected president, Mohamed Nasheed, who was later jailed for 13 years after what Amnesty International described as a ‘sham trial’.

Mr Nasheed told the Mail yesterday: ‘Mrs Blair must have known she was working for an authoritarian regime, with links to money laundering, organised crime and corruption.

‘I hope Mrs Blair finds it in her heart to apologise to the Maldivian people for what she’s done.’

Omnia was hired by the Maldives government last summer, claiming its role was to promote democracy and transparency.

But the Mail revealed that the firm was hired in part to handle PR during the regime’s legal bat- tle with Mr Nasheed, who was represented for free by human rights lawyer Amal Clooney.

Omnia billed Abdullah Ziyath, former managing director of the state-run Maldives Marketing and Public Relations Corporation (MMPRC) for £420,000 last August for six months’ work.

Ziyath is now facing 50 embezzlement charges as part of an investigation into corruption allegations totalling £55million.

A payment for £210,000 subsequently made to Mrs Blair’s firm came not from Ziyath’s agency, but from MC Maldives Private Ltd, a garment company with no links to political activity. The money had been paid to it by Mohamed Allam Latheef, a businessman now wanted by Interpol accused of corruption, arms trafficking, terrorism and the embezzlement of more than £30million.

Omnia says it stopped working for the Maldives government following the arrests of Latheef and Ziyath, was urgently reviewing the £210,000 payment and took suggestions that it was not paid by its client ‘very seriously’.

Senior barristers expressed surprise at Mrs Blair’s decision to work with a government wildly criticised for human rights abuses. Jonathan Fisher QC, who specialises in financial crime, said: ‘There are many firms that would think twice about this.’

A Solicitors Regulation Authority spokesman said: ‘When we become aware of situations like these, we will look at all the relevant evidence and decide on an appropriate course of action.’

The case could have serious ramifications for HSBC, which avoided prosecution in 2012 only by striking a deal with the US government. If found guilty again, it could be banned in the US.

MPs said the payment to Mrs Blair firm should have set alarm bells ringing among HSBC’s compliance officers and called for an investigation by the Financial Conduct Authority.

Regulatory sources said that both Yameen and Mrs Blair would be classed as ‘politically exposed persons’ or PEPs – people whose prominent public position makes them more vulnerable to corruption.

Banks’ internal anti-money laundering systems are meant to raise ‘red flags’ on any transactions involving PEPs. They must then apply tougher checks to ensure transactions are legitimate.

UK regulators said they could not discuss the case. An HSBC spokesman said: ‘In order to protect our customers and to prevent financial crime such as money laundering, we have robust systems in place to monitor payments that are made to and from our customers.

‘Payments are flagged, and in some instances stopped, only when suspicious or criminal activity has been found to be taking place.’

‘I hope Mrs Blair will apologise’