Weekend Economists Boldly Go...Again! September 12-14, 2014

[Demeter]

5. Member of Fifa’s financial watchdog arrested on money-laundering charge

http://www.theguardian.com/football/2014/sep/07/fifa-financial-watchdog-arrested-money-laundering-charge?CMP=twt_gu

Fifa has asked for an explanation from Canover Watson, a member of the body’s financial watchdog, after he was arrested on suspicion of corruption and money-laundering in the Cayman Islands. Watson, one of eight members of Fifa’s audit and compliance committee and a vice-president of the Caribbean Football Union, has denied the charges and has been released on bail.

“In agreement with the ethics committee we have asked Canover Watson whether he can share with the audit and compliance committee any additional information,” said Domenico Scala, head of the committee. “Once we have more information we will consider appropriate measures.”

The Fifa committee is charged with ensuring the “completeness and reliability of the financial accounting” of world football’s governing body.

The Cayman Islands anti-corruption commissioner David Baines said that Watson was suspected of a “breach of trust contrary to section 13 of the Cayman Islands anti-corruption law, as well as abuse of public office … and conflict of interest.” Those allegations refer to Watson’s time at the head of Cayman’s Health Service Authority and follow a police investigation into the introduction of a swipe card system. Baines also cited “suspicion of money-laundering contrary to section 133 of the Proceeds of Crime Law” in the Watson case.

Watson denied the allegations in a statement to the Cayman Compass newspaper. The newspaper said no charges had yet been filed against Watson who under his bail terms is due to report back to police on 29 September.

FIFA MEANS: Fédération Internationale de Football Association; IN A WORD, SOCCER