Sars And Private Law Actions – The 'Chilling Effect' Of Guernsey's AML Legislation In Practice

Carey Olsen partner Mark Dunster and counsel Simon Florance consider the recent judgment in Liang v RBC Trustees (Guernsey) Limited – the first time a private law action of this kind has been brought in the Guernsey courts by a person denied access to assets as a result of a Suspicious Activity Report (SAR) – and highlight the lessons to be learned from the case.

On 10 May 2018, the Royal Court of Guernsey handed down its judgment in Liang v RBC Trustees (Guernsey) Limited.  This was the first private law action brought by a person denied access to assets as a result of a SAR made to Guernsey's Financial Intelligence Service (the FIS).

This kind of private law action was foreshadowed by the Guernsey Court of Appeal in an earlier decision¹, as a by-product of the "chilling effect" of Guernsey's anti-money laundering legislation; namely The Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999 (the POC Law).