DAILY BASKET – NEWS COMMENTARY
Arab Bank Sued In US Courts For Terrorism
MARSAL COMMENTS: The US Supreme court will hear a case against the respectable “Arab Bank” of Jordan, for acting as a bank used by terrorists. The plaintiffs, approximately 6000 victims of terrorist acts dating as far back as 1995 up to 2005, are claiming millions in compensation.
While an earlier US court had ruled in 2015 that the Arab Bank was innocent, the victims pursued the matter all the way to the Supreme Court. And if the Supreme Court rules against the Bank, it will not only cripple one of the oldest and biggest banks in the Arab world, but will create a precedent for future cases.
The legal basis for this case is the US “Alien Tort Statute”, which holds liable any foreign person, individual or corporate, for damages resulting from a violation of international law, no matter where it is committed or by whom, as long as it is lodged in a US court.
Sovereign states were immune from this law until the US congress promulgated the JASTA law which overrode their immunity.
NEGATIVE FOR: Arab banks and companies with dealings in the US. Also, it could negatively impact the flow of capital and financial dealings with US.
POSITIVE FOR: US lawyers and victims of terrorist acts.
IMPACT POTENTIAL: Medium to High. It can change the way Arab Banks do business with the US.
TIME SCOPE: Medium to Long Term.