Landsbanki Freezing Order 2008
Encyclopedia
The Landsbanki Freezing Order 2008 (later amended) is an Order of HM Treasury
to freeze the assets of Iceland
ic bank Landsbanki
in the United Kingdom made under the Anti-terrorism, Crime and Security Act 2001
, by virtue of the fact that the Treasury reasonably believed that "action to the detriment of the United Kingdom's economy (or part of it) has been or is likely to be taken by a person or persons." As required by the enabling Act, the Order was approved by both Houses of Parliament on 28 October 2008, which was 20 days after the Order had come into force.
The Order was made after Landsbanki was placed into receivership
in Iceland. The bank offered online accounts under the trade name Icesave: some 300,000 depositors in the UK had deposits worth about £4 billion when the bank collapsed.
In a memorandum to the Joint Committee on Statutory Instruments, the Treasury stated that "the primary concern was to prohibit the flow of funds held or controlled by Landsbanki's UK branch out of the UK and back to Iceland." The same document also mentioned other reasons for making the order, namely that "the emergency legislation passed in Iceland on 7th October 2008 meant that UK creditors' rights could be prejudiced compared with other creditors" and that "the Icelandic action was likely to have a particularly significant unsettling effect on consumer confidence at a time of unprecedented disturbance of the financial sector."
HM Treasury
HM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
to freeze the assets of Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
ic bank Landsbanki
Landsbanki
Landsbanki, also commonly known as Landsbankinn in Iceland, is a private Icelandic bank with international operations...
in the United Kingdom made under the Anti-terrorism, Crime and Security Act 2001
Anti-terrorism, Crime and Security Act 2001
The Anti-Terrorism, Crime and Security Act 2001 was formally introduced into the Parliament of the United Kingdom on 19 November 2001, two months after the terrorist attacks on New York on 11 September. It received royal assent and came into force on 14 December 2001...
, by virtue of the fact that the Treasury reasonably believed that "action to the detriment of the United Kingdom's economy (or part of it) has been or is likely to be taken by a person or persons." As required by the enabling Act, the Order was approved by both Houses of Parliament on 28 October 2008, which was 20 days after the Order had come into force.
The Order was made after Landsbanki was placed into receivership
Receivership
In law, receivership is the situation in which an institution or enterprise is being held by a receiver, a person "placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights." The receivership remedy is an equitable remedy that emerged in...
in Iceland. The bank offered online accounts under the trade name Icesave: some 300,000 depositors in the UK had deposits worth about £4 billion when the bank collapsed.
In a memorandum to the Joint Committee on Statutory Instruments, the Treasury stated that "the primary concern was to prohibit the flow of funds held or controlled by Landsbanki's UK branch out of the UK and back to Iceland." The same document also mentioned other reasons for making the order, namely that "the emergency legislation passed in Iceland on 7th October 2008 meant that UK creditors' rights could be prejudiced compared with other creditors" and that "the Icelandic action was likely to have a particularly significant unsettling effect on consumer confidence at a time of unprecedented disturbance of the financial sector."