BREAKING: The U.S. Supreme Court upholds dismissal of claims brought under the Alien Tort Statute (ATS) in Jesner v. Arab Bank. The decision finds that foreign corporations are not proper defendants in suits brought under the ATS.
Second Circuit reverses the District Court’s decision in the Linde v. Arab Bank case. The decision means the Bank is not liable for the injuries alleged in these cases.
This site provides information about litigation against Arab Bank, including Jesner v. Arab Bank, PLC and Linde v. Arab Bank, PLC. After years of litigation in which Arab Bank has denied any wrongdoing, both cases have now reached final decisions in favor of the Bank. In Jesner, the U.S. Supreme Court found that foreign corporations are not proper defendants in suits brought under the Alien Tort Statute. In Linde, the Second Circuit found that the trial court erred by failing to require plaintiffs to prove central elements of their Anti-Terrorism Act claims, rendering a disputed verdict null and void without any liability finding against the Bank.
These cases raised very important issues not only for Arab Bank, but also for global counterterrorism efforts, the respect for law among nations, the international finance system, and the financial and political stability of an already volatile Middle East region. In sum, the plaintiffs in these cases argued that Arab Bank or any other bank should be liable for the millions of routine, automated transactions that they process, even when proper compliance requirements are followed and there is no evidence that any of those banking services actually caused or contributed to their injuries.
Fast Facts about Arab Bank
- The U.S. government views Arab Bank as a “constructive partner” in combating terrorism financing.
- As the U.S. Solicitor General has stated, the Bank “is a leading participant in a number of regional forums on anti-money laundering and combating the financing of terrorism.”
- Arab Bank is the largest bank in Jordan and, as part of the Arab Bank Group, operates more than 600 offices across 30 countries on five continents.
- Throughout its history, Arab Bank has earned awards from leading banking organizations, and high reviews from banking regulators worldwide.
- Arab Bank is a bank of choice for delivering U.S. and international humanitarian aid to the Middle East.
Fast Facts about the Litigation
- In the first Arab Bank case to reach a final decision, a federal judge issued judgment in favor of the Bank, concluding “there is no proof that anything but routine financial services to the charities alleged to be front organizations were provided.”
- In a case against Arab Bank recently considered by the U.S. Supreme Court, Justices found in the Bank’s favor, concluding that foreign corporations are not proper defendants in suits brought under the Alien Tort Statute (ATS).
- The Second Circuit also ruled in the Bank’s favor in a unanimous decision overturning a disputed liability verdict, finding that the trial court erred by failing to require plaintiffs to prove central elements of their Anti-Terrorism Act claims.
- Arab Bank employed applicable counterterrorism compliance measures designed to block financial transactions with an appearance of terror financing.
- Arab Bank was among the first banks in the Middle East to screen accounts and transactions outside the U.S. against U.S. lists of prohibited parties beginning in 2004.
- Nearly every transaction the Bank processed in New York was cleared because the parties involved were not designated by the U.S. government.