Sanctioned Iranian bank wins disclosure appeal

23/10/15

The Court of Appeal (Lord Dyson MR, Richards and Lewison LJJ) today allowed Bank Mellat's appeal against a High Court order refusing disclosure of HM Treasury's reasons for imposing financial restrictions under the Counter-Terrorism Act 2008. A cross-appeal by the Treasury was dismissed. 

Bank Mellat was subject to financial restrictions imposed by the Treasury to prevent nuclear proliferation. The restrictions effectively shut down the bank's business in the UK. At first instance Collins J held that the Bank was entitled to be informed of the essential allegations against it, applying the decision of the Supreme Court in AF (No. 3) v Home Secretary. Ouseley J then held that, even applying that standard, no further open disclosure was required. 

Dismissing the Treasury's cross-appeal against Collins J, the Court of Appeal held that - given the effect of the restrictions - the AF (No. 3) standard should apply to the disclosure given by the Treasury. 

Allowing the special advocates' closed appeal against Ouseley J, the Court of Appeal held that the Bank had to be given enough information to enable it to refute, and not merely deny, the essential allegations made against it. It had not been, so the question of disclosure would have to be considered afresh.

The Judgment is here