Amalgamated Metal Trading Ltd. v City of London Police Financial Investigation Unit & Ors [2003] EWHC 703 (Comm) (03 April 2003)

Amalgamated Metal Trading Ltd. v City of London Police Financial Investigation Unit & Ors [2003] EWHC 703 (Comm) (03 April 2003)

It is inappropriate for a financial institution to seek a declaration against the police or SFO that funds are not proceeds of crime where the only issue is police consent under money laundering legislation and there is no substantive dispute between the parties. The court will not grant interim or final declarations on the ultimate question of criminality except after a full trial between parties with opposing interests. Proceedings against the SFO are stayed as they serve no legitimate purpose. Wavesmetco is permitted to counterclaim for payment, which will properly join issue between the parties.

Citation
[2003] EWHC 703 (Comm)
Parties
Claimant: Amalgamated Metal Trading Limited; First Defendant: City of London Police Financial Investigation Unit; Second Defendant: Wavesmetco LLC; Third Defendant: Serious Fraud Office; Interested Party: RBG Resources plc (in liquidation)
Jurisdiction
England and Wales
Judgment Date
03 April 2003
Procedural Posture
Commercial Court Claim for Declaratory Relief / Hearing on Directions and Applications to Stay Proceedings and Amend Pleadings
Outcome
Proceedings against the Serious Fraud Office stayed; permission granted to Wavesmetco to serve Defence and Counterclaim; AMT's claim rendered redundant save for admitted facts.
Legal Topics
Money Laundering, Proceeds of Crime, Interim Declaratory Relief, Banking Compliance, Police Consent Under Criminal Justice Act 1988
Criminal Law Commercial Law Banking Law Money Laundering Proceeds of Crime Interim Declaratory Relief Banking Compliance Police Consent Under Criminal Justice Act 1988

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Parties

Amalgamated Metal Trading Limited

Claimant

City of London Police Financial Investigation Unit

First Defendant

Wavesmetco LLC

Second Defendant

Serious Fraud Office

Third Defendant

RBG Resources plc (in liquidation)

Interested Party

Procedural Posture

Commercial Court Claim for Declaratory Relief / Hearing on Directions and Applications to Stay Proceedings and Amend Pleadings

Legal Issues

  1. 1 Whether the court should grant interim or final declaratory relief that funds are not proceeds of crime
  2. 2 Whether proceedings against the Serious Fraud Office should be stayed
  3. 3 Whether Wavesmetco may counterclaim for payment of funds held by AMT

Ratio Decidendi

It is inappropriate for a financial institution to seek a declaration against the police or SFO that funds are not proceeds of crime where the only issue is police consent under money laundering legislation and there is no substantive dispute between the parties. The court will not grant interim or final declarations on the ultimate question of criminality except after a full trial between parties with opposing interests. Proceedings against the SFO are stayed as they serve no legitimate purpose. Wavesmetco is permitted to counterclaim for payment, which will properly join issue between the parties.

Court Disposition

Proceedings against the Serious Fraud Office stayed; permission granted to Wavesmetco to serve Defence and Counterclaim; AMT's claim rendered redundant save for admitted facts.

Orders

  • Proceedings against the Serious Fraud Office are stayed.
  • Wavesmetco granted permission to serve Defence and Counterclaim.