National Irish Bank is still marketing the controversial Clerical Medical International insurance products. The insurance-based products have been available to National Irish depositors since 1992 and have not been withdrawn. The products, which are not illegal in themselves, can be used for individuals to defer their tax liabilities, by moving the funds overseas. Tax payments would become liable only when interest income is drawn from the accounts. Funds held in Irish deposit accounts would have DIRT deducted by the financial institution.

However, the arrangement could also be a means to hide money from the Revenue Commissioners. The Revenue has said it is examining the situation, although, unless it can ask for information on a specific accountholder, it may be limited under tax law in seeking general information on the accounts.

The Department of Enterprise, Trade and Employment is also likely to examine if the marketing of the products met with insurance legislation, particularly prior to 1994 when regulations about overseas investment were much tighter.

The Central Bank is also looking into the matter. Among other issues, the Central Bank is charged to oversee adherence to exchange control rules and money laundering regulations. The Bank entered the bank's headquarters again on Saturday.

National Irish Bank refused to comment on the marketing of the schemes. However, it is understood that the bank has been marketing Clerical Medical's products since 1990. The insurance product was introduced in 1992.

Under this scheme, National Irish depositors bought CMI insurance products and then invested them on deposit with National Irish. They would have had a number of options including investment in equity or gilt funds and the deposit route would not have been the most lucrative.

However, the bulk of the account-holders are understood to have opted for the deposit route. Most account-holders instructed that the funds be put back in their local branch in numbered accounts held by CMI. However, they would still have had to have written to Clerical Medical to liquidate all or part of the investment.

The Bank's senior management is understood to have been aware that the product was on offer, is are now investigating the key allegation that it was specifically used for the purposes or avoiding or evading tax.

One of the main focuses of the investigation is the question of the nature of the deposit accounts prior to 1994. At that time, all non-resident bank accounts should have had declarations of non-residency attached and thus the Revenue should have been aware of them.

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