Financial Crime World

Court Warns of Consequences for Breaching Freezing Injunctions

The British Virgin Islands (BVI) court has issued a stern warning to respondents who disregard freezing injunctions, stating that they may face severe consequences, including imprisonment, fines, and asset seizure. This move aims to ensure that applicants for freezing injunctions provide sufficient undertakings to compensate respondents for any losses incurred as a result of the order.

Consequences of Breaching Freezing Injunctions

  • Respondents who breach freezing injunctions may face severe consequences, including:
    • Imprisonment
    • Fines
    • Asset seizure

The court has emphasized that it will take a strict approach when dealing with applications for freezing injunctions. Relief will only be granted on an ex parte basis where there are good reasons for not giving notice.

Undertakings and Disclosure

  • Applicants must provide sufficient undertakings to compensate respondents for any losses incurred as a result of the order.
  • The undertaking is typically given in the form of a standard penalty, which requires the applicant to pay damages to the respondent if they fail to comply with the court’s orders.

In addition to these measures, the court has reiterated its commitment to providing redress to victims of fraud through both civil and criminal proceedings. While criminal proceedings may be less common due to jurisdictional challenges, the BVI Criminal Code provides for a range of offenses related to property that can be useful in pursuing fraudulent activities.

Key Takeaways

  • Respondents who breach freezing injunctions may face severe consequences, including imprisonment, fines, and asset seizure.
  • Applicants must provide sufficient undertakings to compensate respondents for any losses incurred as a result of the order.
  • The BVI court will take a strict approach when dealing with applications for freezing injunctions.
  • Criminal proceedings are less common due to jurisdictional challenges, but the BVI Criminal Code provides for a range of offenses related to property that can be useful in pursuing fraudulent activities.

The article highlights the importance of complying with freezing injunctions and the consequences of breaching them. It also underscores the need for applicants to provide sufficient undertakings to compensate respondents for any losses incurred as a result of the order.