Two years after the Governor of the Central Bank revoked the licence of Suisse Security Bank and Trust, a judge has ruled that attorneys for Mohammed Harajchi failed to prove their case that Julian Francis acted in bad faith when he made the order.
Mr. Justice Austin Davis yesterday dismissed the appeal “in total.”
“The Central Bank considers the Court’s decision to be an important affirmation of the regulator’s authority under the law in these matters,” a statement from the Bank said today.
“This confirmation of the authority conferred on the regulator by the Banks and Trust Companies Act, 2000, inspires continued confidence in the ability of Bahamas regulators to protect the quality of Bahamian banking services,” it continued.
Governor Francis revoked the licence after determining that Suisse Security was conducting business in a manner that was detrimental to the public’s interest. Justice Davis delivered a verbal ruling. A written ruling was promised for a later date.
Attorney for Suisse Security, Derek Ryan, in an interview with the Bahama Journal, expressed his disappointment at the ruling.
Mr. Ryan said the bank was cautiously optimistic that its legal arguments would prevail in the case. He said there is one more step in the appeals process, and said he was hopeful that Mr. Harajchi would eventually succeed in getting his license back.
Mr. Ryan added that it is not unusual in the Bahamas for a Supreme Court judge’s ruling to be overturned.
“We will pursue our day in court and we will continue to maintain our position. For now our legal team will have to consult,” he said.
Lead attorney for Suisse Security Bank and Trust, Philip “Brave” Davis had maintained that Mr. Francis abused his power and acted in bad faith when he revoked Suisse Security’s bank licence.
Mr. Francis had explained that the bank had not fulfilled certain prudential requirements.
Those requirements were especially important in 2001, just months after the government passed a package of new financial services laws.
Justice Davis said the question of cost will be dealt with when the written ruling is made available, which he said could come within two weeks.
By Rogan M. Smith, The Bahama Journal
