The Supreme Court's landmark judgment in Cayman Liquidators v. Blackrock Holdings has fundamentally reshaped the law of dishonest assistance. This article analyses the decision and its implications for financial institutions.
The Supreme Court's judgment in Cayman Liquidators v. Blackrock Holdings [2021] UKSC 44 represents the most significant development in the law of dishonest assistance since the Privy Council's decision in Royal Brunei Airlines v. Tan [1995] 2 AC 378. The court's confirmation that wilful blindness is sufficient to establish the mental element of dishonest assistance has profound implications for financial institutions that process transactions on behalf of clients.
This article examines the court's reasoning, the scope of the wilful blindness doctrine, and the practical steps that financial institutions should take to manage their exposure. It also considers the implications of the decision for the ongoing litigation arising from the collapse of several major Ponzi schemes.
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About the Author
Michael Tselentis KC, SC
King's Counsel, Senior Counsel
Michael Tselentis KC, SC is a leading commercial silk with extensive experience in complex international disputes. Called to the Bar in 1998 and appointed King's Counsel in 2015, he has appeared in many of the most significant commercial cases across multiple jurisdictions. Michael is described by leading legal directories as 'a formidable advocate who combines intellectual brilliance with exceptional strategic acumen.' He sits as an arbitrator in ICC, LCIA, and SIAC proceedings and holds Senior Counsel status in Australia.