National Crime Agency v Dong [2017] EWHC 3116

Facts

• The case involved disputed transactions where funds were transferred through multiple international layers.
• Suspicion of money laundering arose due to the nature and structure of these transfers.
• The court scrutinized both the source of the funds and specific details of how the transfers were conducted.
• The National Crime Agency sought asset recovery, challenging the defendant's claim to beneficial ownership.

Issues

1. Whether the presumption of resulting trust applied to property transferred to a party who did not provide consideration.
2. Whether the recipient of the property provided sufficient evidence to rebut the presumption by showing the transfer was a gift or loan.
3. Whether the structure and details of the transactions indicated unlawful activity justifying asset recovery.

Decision

• The court applied the presumption of resulting trust to the disputed transactions as the recipient had not initially provided payment.
• Detailed examination of the defendant’s claims and the factual records was carried out to assess whether these claims could rebut the presumption.
• The recipient failed to provide reliable evidence that the transfers were intended as gifts or loans.
• The presumption therefore remained in place, and the original owner retained the beneficial interest.
• The court stressed the need for transparency, accurate records, and credible evidence in such disputed situations, especially where suspected money laundering is involved.

Legal Principles

• The presumption of resulting trust arises when property is transferred without payment, assuming the recipient holds the property for the transferor unless evidence shows a different intention.
• The recipient can rebut the presumption by providing clear evidence of a gift or loan.
• In cases involving suspicious transactions or potential unlawful conduct, courts may require stronger proof from recipients to challenge the presumption.
• The principle ensures asset recovery aligns with anti-money laundering objectives and counters attempts to disguise the ownership of unlawfully obtained assets.

Conclusion

The court in National Crime Agency v Dong reaffirmed the role of the presumption of resulting trust in disputed transactions, emphasizing the necessity for recipients to supply direct and reliable evidence to rebut the presumption, thereby supporting asset recovery and reinforcing the effectiveness of anti-money laundering measures.