Olint lawyers evade NCB account closure

Olint lawyers evade NCB account closure
From Jamaica Gleaner published: Saturday | April 19, 2008

Though the National Commercial Bank (NCB) yesterday got the green light from the Supreme Court to close the accounts of investment club Olint Corporation Ltd, the closure has been stalled by an order from a Court of Appeal judge.

Within minutes after Justice Roy Jones handed down his decision, attorneys-at-law Georgia Gibson-Henlin and Maurice Manning, who are representing Olint, took the issue to the Court of Appeal.

Justice Algernon Smith heard an application in chambers and granted an injunction which bars NCB from closing the accounts.

The injunction remains in effect until next week Tuesday when Olint’s lawyers will apply to have the injunction extended. Olint is also appealing the judge’s ruling.

Michael Hylton, QC, and attorney-at-law Dave Garcia, who are representing NCB, told The Gleaner yesterday that they would be opposing all applications for an extension of the injunction.

Anti-money-Laundering Policy

NCB had notified Olint in November last year that it was going to close its accounts because it had not complied with its request to supply certain documents which included audited financial statements. The request was made to satisfy NCB’s anti-money-laundering policy, Know Your Customer, and other local and international measures to protect the integrity of the banking system.

Olint went to the Supreme Court and got an injunction which barred NCB from closing the accounts until the matter was heard.

In presenting the case, Olint’s lawyers argued that NCB had “abused its position of dominance” in threatening to close its accounts. It has also accused the bank of discriminating against it.

Jones heard legal arguments in chambers from the parties last month and, in handing down his ruling yesterday, said, “The right of a bank to decide who to do business with cannot be seriously challenged.” The judge said further: “A bank’s knowledge of its customers and the source of funds placed on deposit with it is, after all, an important step towards transparency and affects its ability to establish compliance under the Proceeds of Crime Act 2007.”

Olint is appealing against a Supreme Court ruling in December last year which upheld a cease-and-desist order which was issued by the Financial Services Commission.