The London Court of Appeal has dismissed a
$300m damages claim brought against HSBC’s UK private bank by a
Zimbabwean client relating to suspected money laundering
transactions.
Zimbabwean businessman, Jayesh Shah and his
wife, Shaleetha Mahabeer, claimed $300m damages against HSBC
arising from its delay in executing transactions between September
2006 and February 2007.
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Zimbabwean authorities allegedly froze, then
seized, more than $300m of Shah’s assets after they became aware UK
authorities were making anti-money laundering checks on
transactions from his HSBC Private Bank accounts.
Shah and his wife argued that as a consequence
of HSBC’s decision, they had been stigmatised in Zimbabwe for money
laundering and suspected of criminal activity.
Meanwhile, HSBC claimed that through its
‘nominated officer’ it suspected that proposed transactions
concerned criminal property, and that in those circumstances
it was “obliged” to make a number of authorised disclosures
to the Serious Organised Crime Agency (“SOCA”) under of
Proceeds of Crime Act 2002 (POCA).
Presiding Lord Justice Lewison said in his
judgment: “A “nominated officer” is (in effect) a person nominated
and employed by the bank to receive disclosures under POCA.
In practice this means the bank’s Money Laundering Reporting
Officer.”
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By GlobalData“Thus POCA envisages that a bank employee will
not commit a money laundering offence if he or she discloses his or
her suspicions internally within the bank,” LJ Lewison added.
A HSBC spokesperson said the private bank was
pleased with the judgment
LJ Lewison judgment on
the suspected transaction case
