• CHAPS Transfers and Cases of Suspected Fraud
  • August 4, 2004 | Author: Edmund Sautter
  • Law Firms: Mayer Brown International LLP - London Office; Mayer Brown International LLP - Chicago Office
  • The decision in Hosni Tayeb -v- (1) HSBC Bank Plc and (2) Al Foursan International Company raises important issues in relation to the operation of money transfers by means of CHAPS. The case concerned the manner in which a bank should respond to CHAPS transfers into a client's account when it suspects that the funds are the proceeds of fraud or the transfer is for the purpose of money laundering and the bank is concerned to protect its position and avoid committing an offence under s.93A of the Criminal Justice Act 1988 or sustaining liability as a constructive trustee.