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The Supreme Court has upheld the Court of Appeal’s decision
to strike out a claim brought by the liquidators of a Ponzi scheme
against its correspondent bank, alleging that the bank breached its
so-called Quincecare duty to take sufficient care that
monies paid out from the accounts under its control were being paid
out properly: Stanford International Bank Ltd (In
Liquidation) v HSBC Bank PLC  UKSC 34.
The appeal concerned £116m paid to genuine investors
(directly or indirectly) from the bank’s account, in the period
between when the claimants said the bank should have recognised the
“red flags” and stopped processing its customer’s
payments (thereby exposing the fraud), and the date upon which the
accounts were eventually frozen by the bank. The precise scope and
content of the Quincecare duty was not critical for the
present appeal. Assuming (for the purpose…