Better protection for Ukrainian money in UK banks now
London, UK – February 18, 2010. As of now, citizens of Ukraine can protect their financial transactions in financial institutions in Great Britain from wrongful accusations of money-laundering. A precedent was recently set whereby British banks that are frequented by private individuals from Ukraine to handle large transactions can no longer provide information to oversight bodies without notifying their clients. On February 4, a client of HSBC Bank, Jayesh Shah, who is a citizen of Zimbabwe, won an important court case against his bank. Back in 2006, rather than transferring US $28 million as their client requested, the Bank, without notifying that client, filed a “suspicion of money-laundering” suit with the Serious Organised Crime Agency. As a result of the hold-up in the original transaction, The Reserve Bank of Zimbabwe, who held other assets and accounts of Mr Shah, froze all his accounts with them for a long period. The client claims that because of this he has suffered losses of up to US $300 million. In the course of this case, the London law firm of Zaiwalla & Co Solicitors succeeded in having the court acknowledge that Mr Shah has the right to access information about accusations of money-laundering and confirmation of the legality of the funds at the time that the bank turned to the Serious Organised Crime Agency. “Establishing this precedent will now allow all banking clients, including Ukrainians, far greater rights to protect their money during transactions involving British financial institutions,” said Zoya Burbeza, a lawyer with Zaiwalla & Co. “It’s no secret that transactions from Ukraine, where the level of corruption is considered high, tend to fall under additional scrutiny from British banks and financial oversight agencies. This ruling should allow Ukrainian companies and entrepreneurs to more actively use British banks, compared to banks in other countries.” This court case was widely publicized in Great Britain, as even the Home Office was involved in the hearings to determine how new legislation should be interpreted. Great Britain has very strict laws on how to deal with money-laundering, such as the Money Laundering Regulations 2007, according to which banks and other financial institutions are obligated to provide notice of any and all suspicious transactions, no matter how small. This means that even quite legitimate transactions could fall under suspicion, such as money transferred to Great Britain to be invested into real estate and commercial activities. At the same time, the UK is traditionally one of the most popular places for capital investment from Ukraine. The spheres that interest Ukrainian businesses vary, but most interest is directed at buying real estate and setting up new businesses or holding companies. Ukrainians also frequently use British banks to deposit their money and for other transaction purposes. Zaiwalla & Co is a law firm in London providing the entire range of legal services. Zaiwalla & Co was established in 1982. Its primary specialization is international arbitration. Zaiwalla & Co offers its services to public and private corporations as well as private individuals from around the world. Contact persons: Zoya Burbeza, Zaiwallа & Co, Tel.: (44) 207-3121-000, e-mail: z.burbeza@zaiwalla.co.uk Andriy Zavalko, CFC Consulting, Tel.: +38044-492-7599, e-mail: az@cfc.com.ua