As reported by us 31st August ‘IPT Solve Bank Crisis’ DASS solicitors have published the following update regarding the FCIB and frozen mobile traders bank accounts…
FCIB LEGAL UPDATE
FRIDAY 15 SEPTEMBER 2006
We have now heard from our Curacao lawyers in respect of the verdict that was delivered by the court yesterday, in relation to the various applications made last week.
The court has ruled as follows:-
- The court has denied FCIB’s claim to freeze the accounts/withhold funds upon the basis that FCIB is entitled to receive further compliance documents. This means that the court has ruled that account holders do not have the obligation to provide any further documents/information to FCIB;
- It appears that there is enough "reasonable belief" that the FCIB accounts could have been used in the commission of fraud or unlawful activity. This is as a result of the Scottish and local Curacao court orders. The FCIB is not obliged to move the funds if there is reasonable belief that the funds have been generated by fraudulent activities. The court has based this argument upon Article 3 of the National Ordinance Penalization of Money Laundering. This gives FCIB sufficient reason to refuse to transfer the funds out of the accounts;
- However, the court has also ruled that FCIB cannot freeze the funds indefinitely, based upon this reasonable belief, provided that there will be no additional freezing orders.
The action that now needs to be taken is as follows:-
- There are sufficient reasons to challenge the "reasonable belief";
- Our Curacao lawyers are of the view that there are sufficient reasons to argue that FCIB cannot base its actions upon Article 3 of the National Ordinance Penalization of Money Laundering, even with the Scottish and local court orders. Those orders only require FCIB to provide the documentation in its possession, and nothing more;
- We will argue that FCIB has been given enough time to freeze the accounts and that no additional freezing orders have yet been issued;
- We can therefore instigate new legal proceedings immediately expanding upon the above points and making a request to release the funds immediately;
- We can also appeal the verdict in order to try and have the verdict overturned by the Court of Appeal in Curacao;
- The new proceedings should take no longer than two weeks.
We are now in the process of having the court verdict translated into English.
In terms of the companies that have had their funds withheld but are not effected by the Scottish/Curacao court orders, their applications should be easier and should not have the same problems as the present applications.
We are in the process of making applications in respect of companies that have not been effected by the Scottish/Curacao orders and will let you know as soon as possible as to the decisions in respect of those applications.
For any further information, please contact:-
Mr Alias Dass
0121 248 4000
0780 191 3847
Miss Cassandra Moore
0121 248 4000
Mr Dipak Jotangia
0208 795 7731
07976 288 297
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