The Privy Council has issued a written decision that allowed Stanford Asset Holding Limited (SAH) to obtain the names of the alleged recipients of millions of dollars stolen.
Subsequently, eleven individuals and three Mauritian companies had their assets frozen.
In a 23-page judgment, the Law Lords explained their motivation for lifting banking secrecy to enable the two aggrieved companies, Stanford Asset Holding Limited (SAH), registered in the Seychelles, and Greenway PCC, an offshore company in Mauritius that manages SAH, to obtain details and identities of the alleged recipients involved in a fraud totaling 11,145,000 US dollars (equivalent to Rs 500 million). SAH contends that the money, representing investors’ funds, was illegally transferred on February 17, 2022, from its account at AfrAsia Bank to that of Key Stone Properties Ltd (KSPL), also at the same bank.
In essence, SAH and Greenway PCC were appealing a decision of the Supreme Court dated September 29, 2022.
The two aggrieved entities had, through a motion, requested an order from the Supreme Court compelling AfrAsia Bank to disclose the names and financial information of the recipients of the stolen money.
The Lords in their verdict particularly focused on Article 64 of the Banking Act, which deals with the duty of banking secrecy and confidentiality.
The Privy Council of the King found that the purpose of this article was never to prevent courts from aiding fraud victims in recovering their assets.
AfrAsia Bank was thus ordered on July 21, 2023, to disclose, in the form of an affidavit, to SAH and Greenway PCC, the full names, addresses, account numbers, and contact details of the recipient(s) of the diverted amount.
Source: Defi Media
