Untangling Dishonest Assistance And Knowing Receipt

Despite the media portrayal of offshore jurisdictions, not all offshore companies are vehicles of fraud. However, there are undoubtedly cases where offshore companies are used to receive the proceeds of fraud. For liquidators assisting the victims of such frauds in recovering assets from offshore companies, the legal doctrines of Dishonest Assistance and Knowing Receipt provide an effective way of seeking redress.

On 27 January 2022 Lord Justice Newey handed down the Court of Appeal's decision in Byers v Saudi National Bank (previously Samba Financial Group) [2022] EWCA Civ 43 dismissing the Claimants' appeal and upholding Mr Justice Fancourt's decision in the High Court at first instance. Specifically, the Court of Appeal was asked to consider whether: (i) a claim for knowing receipt depends on a claimant maintaining a proprietary interest in the property in the hands of the defendant; and (ii) whether that interest existed on the facts of the case before it.