Wednesday, April 30, 2008
NCB Gets Early Hearing Of Olint Appeal
Click here - Court of Appeal Judge’s judgment in full
On April 18, 2008, the Honourable Mr Justice Roy Jones dismissed Olint’s application for an injunction restraining NCB from closing Olint’s accounts, on the basis that Olint’s claim lacked sufficient merit. Shortly after, Olint filed an appeal and obtained from the Court of Appeal a temporary injunction preventing the closing of the accounts.
On April 30, 2008, the Honourable Mr Justice of Appeal Karl Harrison gave a judgment granting Olint an extension of the injunction preventing closure of the accounts, until the hearing of Olint’s appeal on May 12, 2008.
NCB is pleased that an early date has been set for the hearing of the appeal, as we are steadfast in mitigating any risk from continuing a relationship with Olint. These include the regulatory risks and the risks to the relationships with overseas correspondent banks on which NCB and its various customers depend. These risks arise from:
NCB not being provided with sufficient information on the nature and legitimacy of Olint’s business;
the ruling by the Supreme Court (in the claim involving Olint and the Financial Services Commission) that David Smith and Olint are operating illegally, in breach of the Securities Act; and
the failure of Olint to provide know your customer information – particularly audited financial statements, as required by the Bank of Jamaica’s Guidance Notes.
NCB will be arguing some of these points in the appeal. We have also filed a counter-notice of appeal which indicates that Olint obtained its initial injunction from the Supreme Court ex parte (that is, not having heard NCB) without advising the Court of all the relevant facts, and having misled the Court as to the activity levels on Olint’s accounts.
As the injunction remains in place, Olint’s accounts with NCB remain open and operational. Accordingly, cheques issued by Olint will be honoured once there are sufficient cleared funds on the accounts on which they are drawn.
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