IRISH Intercontinental Bank has refused to release some £400,000 in funds held in the so-called Ansbacher deposits. The money is being held by the bank until the beneficial ownership and any liability to DIRT tax can be established.

As far as Irish Intercontinental Bank (IIB) is concerned, the money was held in accounts held by the Cayman Islands bank, Ansbacher (Cayman) and another Cayman's institution, Hamilton Ross. However, the McCracken tribunal report discovered that the money was beneficially owned by a number of Irish residents. Among the beneficiaries was the former Taoiseach, Mr Charles Haughey.

Among the issues which the bank wants to clarify is whether DIRT tax was due on any of the money. The beneficial owner of the money now frozen cannot be firmly established.

The Ansbacher deposits were established by the late Mr Des Traynor and, according to the McCracken tribunal report, totalled as much as £38 million at one stage.

Most of the money was withdrawn from the Ansbacher deposits - and the associated deposits in the Hamilton Ross company controlled by the late Cayman Islands banker, Mr John Furze - in early 1997. The McCracken tribunal commenced its hearings in April of that year.

The deposits are currently being investigated by an authorised officer appointed by the Tanaiste, Ms Harney, and by the Moriarty Tribunal team.