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Litigation Against Terrorist Sponsors

On February 7, 2008 by Schnader

On February 7, 2008, Martha Skidmore spoke at the “Litigation Against Terrorist Sponsors” roundtable discussion, hosted by the Foreign and International Law Committee of the New York County Lawyers’ Association. The discussion regarded current litigation against Saudi American Bank, along with other banks and money transfer agents, for facilitating terrorist funding for the World Trade Center bombing and Hamas bombings. Martha discussed the international banker’s Know Your Customer (KYC) rule and how it establishes the standard of care to be applied to international banks in tort claims.

Often deemed as the bedrock of training and ethical practice for international bankers worldwide, the KYC rule has been codified under the United States Department of Treasury’s anti-money laundering regulations. The rule has also been expanded under the United States Patriot Act of 2001 to better scrutinize bank training programs and procedures and to cover a wider range of money services businesses and jewelry wholesalers and retailers.