BML Denies Escrow Agreement Involving Yameen

The Bank of Maldives (BML) clarified that the USD 1 million from former President Abdulla Yameen was not deposited into the Anti-Corruption Commission (ACC)’s bank account under an escrow agreement.

The funds, originating from the lease of GA. Vodamula, were transferred to the ACC’s account on 10 June 2018, under an agreement between the former president and the commission. Despite the details of this agreement and the expiration of the specified 12-month period, the money was repaid to Yameen. Consequently, Yameen filed a lawsuit in the Civil Court in 2022, claiming a violation of the escrow agreement by BML.

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In its defence, BML challenged the Civil Court’s jurisdiction, noting that the agreement was exclusively between Yameen and the ACC, with no involvement from the bank. However, the Criminal Court dismissed BML’s objection on 20 February, instructing the bank to respond.

During Monday’s High Court hearing, BML’s advocate Moosa Farish Ahmed argued that although the civil court’s verdict and other documents suggested the existence of an escrow agreement, no such agreement was in place when Yameen transferred the money.

“An escrow agent is a neutral third party who holds assets or money until a contractual condition is met,” Farish explained. He emphasised that escrow agreements typically involve three parties, including the escrow agent, who has specific authorities and powers to transfer the money or assets according to the agreement.

Farish contended that the transaction in question did not fit this framework, as it was an agreement solely between Yameen and the ACC. “As per the agreement, when the contractual condition is met, it is the ACC’s liability to transfer the money back to Yameen,” he said. Farish further clarified that in an escrow agreement, assets or money are held in the escrow agent’s account rather than by the transacting parties. In this case, Yameen transferred the money to an account for which the ACC is the sole beneficiary.

“The Bank of Maldives does not have any authority to handle the money as it wishes,” Farish added.

BML has requested the High Court to rule that it is not legally liable in the case filed by Yameen and to remove it from the proceedings entirely.