It is ironic that the UK government is wont to criticise locations such as the British Virgin Islands (BVI) and the Caymans for their systems of taxation, and as offshore hosts to companies owned by people and entities from across the globe, yet suddenly finds itself almost making a Russian blacklist for exactly the same reasons.
The Kremlin's Finance Ministry had announced that it would officially equate Britain with traditional ‘fiscal paradises’ like Panama, the BVI and the Caymans. Such a humiliating move would have meant any Russian resident who set up a UK company – such...
14 October last year Ukrainian parliament passes an updated – FATF-oriented
– law with an overly optimistic and catchy title “On Preventing and Combatting
Legalization (Laundering) of the Criminally Acquired Income, Financing of
Terrorism and Financing of Proliferation of Weapons of Mass Destruction” (a.k.a.
Anti-Laundering Law) and its satellite “On Amending Certain Legislative Acts of
Ukraine on Defining Ultimate Beneficiaries and Public Persons” (a.k.a. UBOs
Law). Both laws are passed to implement Ukraine’s Anticorruption Strategy
(adopted on the very same day) and, inter...
As published on this site, in late December the liquidators of
Cayman Islands-domiciled Weavering Macro Fixed Income Fund Limited (the Company)
filed a series of summonses in the Grand Court in which they claim that redemption
payments made by the Company to a number of investors in the six months
immediately preceding the commencement of the liquidation of the Company are
'invalid preferences.' In these
claims the Liquidators rely upon s.145 (1) of the Companies Law 2009 (as
Amended), as opposed to Section 37(6)(a) of the Companies
Law, and Section 168 (the predecessor to...
That was the question before
the U.K. Supreme Court in the case of Prest v Petrodel Resources Limited &
Others and answered in the negative in the much awaited and by now heavily
analysed judgment issued in June of this year and reported at  UKSC 34.
In the end the Supreme Court used trust law rather than company law to hold
that seven disputed properties in matrimonial proceedings were in the
particular circumstances of the case, held on trust for the husband (even though
held in fact by his companies). While the Court did not resort to
piercing the company veil...
Last week the U.S.
Chamber of Commerce Institute for Legal Reform issued a report in which it called for the regulation of entities offering funding
for litigation to those who cannot afford the costs of taking their claim to
the Courts. The Chamber has been a
critic of third party funders for some time, offering the opinion that “third-party investments in litigation represent a clear
and present danger to the impartial and efficient administration of civil
justice in the United States.” I
would like to know on what basis such a conclusion was reached. The paper issued by...
U.S. government has in recent years exhibited an increasingly aggressive
approach in prosecuting individuals for alleged violations of the Foreign Corrupt Practices Act, (“FCPA”). The FCPA prohibits, inter
alia, any domestic individual
or business entity from making payments to a “foreign official” for the purpose
of obtaining or retaining business 15 U.S.C. § 78dd-2(a)(1). Prosecutors have pushed an expansive view of who is a foreign official
in recent years, in pursuing many cases where bribes were paid to officials at
the FCPA, a...
The recent decision of the
Supreme Court of England and Wales in the case of Rubin and another v Euro Finance SA  UKSC 46 represents a return to a territorial approach in the context of insolvency
proceedings. The Supreme Court
overturned the judgment of the Court of Appeals in what is considered to be a
landmark decision, not on account of any pioneering legal argument but because
it signals a return to the status quo and a rejection of the judicial trend towards a universal approach to cross-border insolvency proceedings.
The Supreme Court judgment re-asserts the...
The English High Court recently handed
down a rather contentious decision in the case of R (on the application of Omar) v Secretary of
State for Foreign & Commonwealth Affairs  EWHC 1737 (Admin), where it held that a Norwich
Pharmacal order cannot compel the provision of evidence for use in foreign
proceedings. The Court distinguished evidence from information, while admitting
that the distinction was not a clear one. In this case the Applicants, (arrested in connection
with the fatal bombing in Kampala during the 2010 FIFA World Cup Final) sought
to compel the...
In June of this year the Eastern Caribbean Court of Appeal dismissed Fairfield Sentry Limited's appeals. The Court of Appeal found that the restitution claims, brought on the basis of alleged mistake as to the value of the Madoff Investment Securities did not render the contracts between Fairfield and the redeeming shareholder null and void. There were contractual obligations to be fulfilled by both Sentry and former shareholders by virtue of Article 10 of Sentry's Articles of Association. The former shareholders had fully performed their obligations under the contract and so upon a...
A wave of
lawsuits have been instituted against a series of banks alleged to have been
involved in the rigging of Libor.
One of the earliest of these was instituted as far back as April of this
year, by Charles Schwab Short Term Bond Market Fund; Schwab Total Bond Market
Fund and Schwab U.S. Dollar Liquid Assets Fund (collectively “the Schwab
Funds”). The Schwab Funds
assert claims for violation of federal anti-trust law, RICO and California
statutory and common law against no less than 21 Defendants, including the
usual suspects, Barclays Bank PLC, the Royal Bank of Scotland...