Customer care

In the recent case of Shah v HSBC Private Bank (UK) Ltd [2009] EWHC 79, Mr Justice Hamblen accepted that it is arguable that a banker’s duty of care is not completely excluded by the anti-money laundering provisions in Part 7 of the Proceeds of Crime Act 2002 (POCA). Andrew Keltie and Charles Thomson of Baker & McKenzie examine the judgment and its implications.

Charles Thomson, Associate may be reached on tel: +61 2 8922 5490; email: charles.thomson@bakernet.com

Reducing the risk of a civil claim – the basics

As a general rule, banks are unlikely to be liable in damages as a result of making an authorised disclosure to the Serious Organised Crime Agency (SOCA) provided that their suspicion is in good faith. However, they may be liable in damages if they fail to act with reasonable skill and care. To reduce the risk of civil liability, banks should adopt the following safeguards: