THE QUINCECARE DUTY OF CARE

CMS Law on 12th April published an article about a recent UK High Court case between the Government of Nigeria and JP Morgan.  It provides a reminder of the Quincecare duty of care, which arises when bankers are asked to make payments in circumstances in which there are reasonable grounds to suspect a possible fraud.  It explains that banks then owe a duty of care to their customers to refrain from making payments. When “on inquiry” in this way, banks have a positive duty to investigate the potential fraud and they have to be satisfied, by enquiring as far a reasonable banker could be expected to do so, that the payment is not fraudulent before they can be “off inquiry” and go on to comply with their contractual obligations and make the payment.

http://www.cms-lawnow.com/ealerts/2019/04/bankers-duties-and-suspicious-payments-excluding-the-quincecare-duty-of-care?cc_lang=en

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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