On 20th June, The Lawyer reported that the Financial Intelligence Service’s refusal to consent to a proposed transaction under Guernsey’s AML reporting regime has resulted in the Royal Court deciding its first private law action between the person claiming the asset and the financial institution holding it.  The article from law firm Ogier concerns the case of Liang v RBC Trustees (Guernsey) Ltd which it says provides clarification of the legal framework for determining the source of funds which will be highly relevant to all regulated entities in Guernsey.  The Court had previously held that a person seeking access to funds without the consent of the FIS can obtain relief from the Royal Court under certain conditions.   Ogier says that Royal Court has tried to create a workable balance between the conflicting interests of the custodian and the beneficiary, and that the decision also highlighted the rights of the asset owner, saying that the Court must have the ability to make an order for payment if the asset owner can show that the funds are not proceeds of crime.  However, it also says that whilst the Court has attempted to strike the right balance, the position still remains somewhat unsatisfactory from the perspective of both custodian and beneficiary.

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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