Weiss v. National Westminster Bank PLC
936 F. Supp. 2d 100
E.D.N.Y2013Background
- Plaintiffs, about 200 U.S. citizens and estates, sue NatWest under ATA §2333(a) seeking treble damages for Hamas-related terrorist attacks in Israel (2002–2004).
- Plaintiffs allege NatWest aided Hamas by maintaining Interpal accounts and transferring funds to Hamas-front charities with knowledge of Interpal’s links to terrorism.
- Interpal, a UK charity, opened accounts with NatWest in 1994; Charity Commission investigated Interpal in 1996 and later cleared it of terror financing; OFAC designated Interpal as an SDGT in 2003.
- British regulators and NCIS coordinated investigations; NatWest consistently disclosed suspicions through Goalkeeper, filed SARs, and consulted NCIS, Bank of England, and Charity Commission.
- Charity Commission cleared Interpal in 2003; OFAC designation prompted NatWest to conduct its own internal reviews and maintain accounts under enhanced monitoring.
- Court grants summary judgment for NatWest on scienter, dismissing the action for failure to prove knowledge or deliberate indifference regarding Interpal’s alleged support to Hamas.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Scienter under ATA, 2333(a) need | Weiss alleges NatWest knew Interpal funded Hamas. | NatWest lacked actual knowledge or deliberate indifference; disclosures and reviews show diligence. | NatWest lacked requisite scienter; summary judgment for NatWest. |
Key Cases Cited
- Boim v. Holy Land Found., for Relief & Dev., 549 F.3d 685 (7th Cir. 2008) (requires knowledge to support liability under ATA sections)
- Strauss v. Credit Lyonnais, 925 F. Supp. 2d 414 (E.D.N.Y. 2013) (knowledge or deliberate indifference standard for scienter under ATA)
- Freier v. Westinghouse Elec. Corp., 303 F.3d 176 (2d Cir. 2002) (mere suspicion cannot equal knowledge; scienter requires more)