Appellate Ruling in Terror Victim Suit Puts Banks Between Privacy Laws and Plaintiffs

By Brian Monroe

A decision by the U.S. Second Circuit Court of Appeals affirming sanctions against Jordan's largest bank for not turning over data on suspicious accounts could leave some financial institutions with an unwanted choice: either pay litigants or pay regulators. The appellate court last month shot down an appeal by Arab Bank that sought to dismiss sanctions against the institution for failing to produce account records potentially related to Hamas and other blacklisted terrorist groups. In 2010, a U.S. district court ruled that jurors could assume the bank was hiding incriminating evidence if it did not hand over the data. Appealing...