Audit aims to find dormant accounts of Nazi victims

November 19, 1996
Web posted at: 7:30 p.m. EST

NEW YORK (CNN) -- A special outside audit of Swiss banks will look for dormant accounts of Nazi victims, and turn any evidence of looted assets over to Swiss authorities, former Federal Reserve Chairman Paul Volcker said Tuesday.

"I have no doubt that the intensity and breath of this effort is unprecedented," said Volcker, who heads the Independent Committee of Eminent Persons, set up in May by the Swiss Banks Association and the World Jewish Restitution Organization. The goal is to complete the audit by 1998.

Three major accounting firms -- Arthur Andersen, KPMG Peat Marwick and Price Waterhouse -- have been selected to conduct the audits. Auditors will search not only for regular accounts, but for illiquid assets that may have been entrusted to the banks as well, Volcker said.

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Many European Jews deposited their life savings in Swiss banks during the tumultuous 1930s and 1940s. After the war, many were not allowed to recover their assets because their documentation was gone. Others did not survive to try.

Jewish groups estimate as much as $7 billion may be missing. Last week, the Swiss banks' ombudsman, Hanspeter Haeni, reported he had found only $8,800 belonging to the heirs of Holocaust victims, results the World Jewish Congress called "pathetic." Swiss banks have identified about $35 million in unclaimed assets that may have belonged to Nazi victims.

Edgar Bronfman, president of the World Jewish Congress, said in May that the purpose of setting up the search committee was to prevent illegal profiteering from Holocaust victims.

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Volcker said the preliminary investigation is expected to be completed by mid-1997, with the final audit done a year later.

"Our mandate is in a sense to do an investigation that will require no further investigations," Volcker said.

He said if the search for accounts identifies Nazi victims or their heirs that are owed money, the information will be turned over to the Swiss ombudsman.

"In the end we may uncover material that will aid his efforts. But, it is not our intent to match up money with names."

Correspondent Gary Tuchman and The Associated Press contributed to this report.  

Related stories:

• Documents show Nazis had access to Jews' Swiss bank accounts - November 16, 1996
• Swiss envoy concedes 'mistakes,' but defends banking secrecy - October 30, 1996
• New pressure on Swiss to solve mystery of Nazi gold - September 18, 1996

Related sites:

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• Union Bank of Switzerland
• Holocaust Assets and Swiss Banks

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