U.K. Warns Banque Havilland Over ‘Improper’ Qatar Advice

(Bloomberg) -- Banque Havilland SA, the Luxembourg-based lender that counts Prince Andrew as one of its clients, was issued with a warning notice by the U.K. financial regulator over its alleged role in an economic boycott of Qatar.

Controlled by financier and U.K. Conservative Party backer David Rowland, the lender gave “improper advice” in a presentation that set out “manipulative trading practices” over Qatari bonds, the Financial Conduct Authority said Tuesday. The presentation could be taken to harm the Qatari economy, it said.

A spokesperson for Banque Havilland said no findings had yet been made by the regulator and it was challenging the warning notice through the FCA's internal processes. The warning “refers to historic allegations of misconduct at the bank's London premises in 2017.”

“None of the individuals referred to in the warning notice remains with the Bank,” the spokesperson said.

Banque Havilland told a court during litigation with the Qatari state in 2020 that it was cooperating with the U.K. regulator. In the civil suit, Qatar accused the lender of orchestrating a financial attack with the aim of destabilizing the riyal. The case has since settled “on a confidential basis,” a lawyer for Qatar said last month.

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The presentation prepared for the chief executive of a United Arab Emirates sovereign wealth fund detailed an attempt to deplete the Qatar's reserves and damage its ability to host the soccer World Cup in 2022, the state alleged.

“In creating and disseminating the presentation, Banque Havilland exposed itself to the risk it might be used to further financial crime,” the FCA said in its notice.

Qatar said it needed to make a “massive fiscal intervention,” pouring money into the economy at the same time as its neighbors blockaded the gas-rich nation. The central bank liquidated assets and injected $1.6 billion while the Qatar Investment Authority deposited some $20 billion with domestic banks.