Bank of Maldives (BML) has stated that it would appeal the Civil Court’s ruling that supports the claims of private company Kings Capital Holdings owned by Alhan Fahmy.
The BML accounts of Kings Capital Holdings were suspended with funds after the company was accused of running a Ponzi scheme. However, Kings Capital Holdings filed a lawsuit at Civil Court seeking compensation for the damages incurred after BML illegally suspended their accounts without a permit from the court.
The Civil Court on Wednesday ruled that BML did not have any authorization to suspend the accounts of Kings Capital Holdings. The ruling further stated that as per the Money Laundering Act, the Bank can only deactivate or freeze an account with a court order, it cannot act on its own on such cases. Moreover, Kings Capital Holdings is entitled to seek compensation for the damages incurred after BML suspended their accounts.
After the ruling against the bank, BML stated that it would be filing an appeal at the High Court. BML further stated that it hopes the High Court would consider both judicial and legal points that were overlooked at the Civil Court and that it would come to a more just ruling.
Maldives Police Service is also currently investigating a case against former MP Alhan Fahmy and Kings Capital Holdings over the claims of running a Ponzi scheme.