Watford firm faces Nigeria quiz

Watford-based law firm Mathew Arnold & Co last week faced a demand for financial information as part of attempts by Nigeria to recover looted money from the City.Last week City firm DJ Freeman, acting for the Nigerian government, served demands for financial information on up to 106 defendants - including Mathew Arnold & Co - in a 1 billion civil claim.Nigeria claims money was rifled from state coffers by the late dictator Sani Abacha and other members of his family, and laundered through City institutions, including law firms.The other defendants include an array of respected City institutions such as HSBC and Merrill Lynch.A spokesman for Mathew Arnold & Co said: 'We have been directed to supply certain information and we're entirely comfortable about that, and will cooperate fully with DJ Freeman in its enquiries.'The Swiss lawyers who acted for the Nigerian government in recovering money from Swiss banks suggested that the action is being used in part to show the City of London is just as susceptible to money laundering as Switzerland.A senior lawyer at Hauchmann Monfrini & Bottge, who declined to be named, said: 'This case shows two interesting comparisons between the Swiss and English systems: first how easy it is to open accounts without evidence of the legal origin of the money - both countries are about the same in this respect; and secondly how willingly both countries respond to requests for mutual assistance, Switzerland has done so, in the UK this has been difficult.'The lawyer continued: 'Countries such as Switzerland and Luxembourg want to show the UK and others that their banking secrecy is not susceptible to money laundering, certainly no more than the UK's system.'Tim Daniel, the partner with DJ Freeman acting for the Nigerian government said: 'The Swiss are desperately keen to show that the whole issue of secrecy has now changed, largely as a result of the holocaust recovery cases there.'This is the second attempt made by the Nigerian government to recover the money in the UK.

A fraud action launched earlier this year was sandbanked when the Abacha family, advised by City lawyers Dechert, brought a successful application to block the Home Office from providing mutual assistance by way of banking documents.The Judicial review hearing in that case starts this week.Jeremy Fleming