SCOTUSblog by Michael Barr 7/26/2017
The Supreme Court has again decided to consider whether corporations can be liable for violations under the Alien Tort Statute. Jesner v. Arab Bank, PLC involves claims against Arab Bank under the ATS for allegedly knowingly and willfully financing terrorism by clearing transactions in support of terrorism through its New York branch.
Our amicus brief – filed on behalf of financial-regulation scholars and former government officials responsible for anti-terrorist-financing policy and enforcement – argues that a finding of corporate liability for banks is appropriate and consistent with U.S. policy and law. Preventing terrorist financing is a major policy goal of the United States. The U.S. Department of the Treasury has stated that disrupting the flow of funds to terrorists is an integral component of combating terrorism. Because the United States plays such a central role in the global financial market, denying terrorists access to the U.S. financial system is vital. Ensuring that terrorists do not have access to U.S. dollar clearing, the conversion of funds by a bank on behalf of a client from foreign currency into dollars, will help establish an environment less prone to terrorist financing.
The United States has developed extensive policies to further its goal of preventing terrorist financing. There are a wide range of statutes that enforce anti-terrorism policy, one of the most important of which is the Bank Secrecy Act. The BSA requires banks to create and maintain programs that monitor their financial transactions and to submit reports and records to the government, including reporting any suspicious activity to the Financial Crimes Enforcement Network (FinCEN), a bureau within Treasury.
More:
http://www.scotusblog.com/2017/07/symposium-combating-terrorist-financing-corporate-liability-alien-tort-statute/#more-258916
