COMMENTARY: Bankrupting the banks? Historic trial may find financial institutions liable for the terrorist acts of customers

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Banks and financial institutions around the world are closely watching the Linde v. Arab Bank case unfold in New York City. It’s the first civil trial against a bank for alleged violations of the AntiTerrorism Act of 1990 (“ATA“), 18 USC 2331. The litigation seeks to hold the Arab Bank, a third party, liable for injuries resulting from acts of terrorism. Liability, potentially in the billions of dollars for financial institutions, may come down to whether the Arab Bank had a competent anti-money laundering compliance regime in place to assess terrorist financing risks, including from non-listed entities.

Read the commentary by Christine Duhaime in Anti-Money Laundering Law.

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