We mentioned money transfer services to Somalia and issues arising from the Money Laundering Regulations 2007 in one of our articles published last October. A case has now been heard in the High Court.
- Following an internal review in late 2012/early 2013, Barclays decided to reduce its exposure to "money service businesses" (as defined in the regulations), particularly where its customers were remitting funds to Somalia
- It gave notice to those customers of its intention to withdraw the banking services it provided to them, which attracted a good deal of publicity.
- Subsequently the customers applied to the High Court for interim injunctions to prevent Barclays doing so, which were granted on 5 November 2013 (Dahabshiil Transfer Services Ltd v Barclays Bank plc and Harada Ltd & another v Barclays Bank plc [2013] EWHC 3379 (CH)).
- The court found there were issues to be tried as to whether Barclays had a dominant position in the relevant market and whether there was abuse of that position.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.