UAE: ADGM Court Clears Way For Disclosure Of Bank Records In NMC Case

The Abu Dhabi Global Market (ADGM) Court has ruled that Bank of Baroda may be required to disclose suspicious transaction reports (STRs) and related internal records in civil proceedings linked to the collapse of NMC Healthcare, following changes to the UAE's anti-money laundering law.

In a judgment delivered recently, Justice Sir Andrew Smith allowed applications by the joint administrators of NMC Healthcare Ltd and NMC Holding Ltd to set aside a previous order that had blocked disclosure of such documents.

The decision follows the introduction of Federal Decree-Law No. 10 of 2025 on Anti-Money Laundering, Counter-Terrorism Financing and Counter-Proliferation Financing, which came into force on October 14 this year, replacing the earlier 2018 law.

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The ruling forms part of long-running civil proceedings brought by NMC's administrators against the company's founder Bavaguthu Raghuram Shetty, former executive Prasanth Manghat, and Bank of Baroda, over alleged misconduct linked to NMC's collapse.

In June 2025, the court ruled that Bank of Baroda could not disclose any STRs filed under UAE anti-money laundering laws, citing strict confidentiality provisions and the risk of criminal liability for“tipping off”. However, NMC's administrators returned to court after the new AML law came into force, arguing that the legal position had changed.

Justice Smith agreed, holding that the 2025 AML Law introduces a broader exception allowing disclosure of confidential information“in other situations permitted by law”.

The judge rejected Bank of Baroda's argument that this exception applies only to federal legislation and does not extend to court orders.

“I conclude that Baroda's contention about the meaning of 'qanoun' (and 'qanounan') is too prescriptive,” Justice Smith said, ruling that the term can, depending on context, include court orders issued by UAE courts.

As a result, disclosure ordered by a UAE court does not, by itself, breach the confidentiality provisions of the 2025 AML law.

The court stressed that STRs should not be disclosed routinely in civil litigation. Justice Smith said courts must balance the public interest in protecting the confidentiality of reports submitted to the Financial Information Unit (FIU) against the need for a fair trial.

“The Court will strive to ensure that it does not make an order that gives rise to an unnecessary risk of compromising the important work of the FIU,” the judgment said.

Before any disclosure takes place, the court indicated that the FIU and other authorities may be given the opportunity to raise objections if disclosure could affect ongoing or future investigations.

The court noted that the claims against Bank of Baroda involve“very serious allegations of dishonesty and other improper conduct” and found there was a realistic prospect that the disputed documents would assist in resolving the case. The documents relate to matters dating back to before or around April 2020, and the court said they are unlikely to affect current FIU work.

Khalifa Bin Huwaidan Al Ketbi, senior lawyer at Al Ketbi Legal Advocates and Legal Consultants, told Khaleej Times the updated AML law brings greater clarity.“It preserves the confidentiality of suspicious transaction reports while recognising that courts may, in tightly controlled circumstances, permit disclosure to ensure a fair trial,” he said.

Mahrah Belobaida Al Suwedi, senior lawyer at Al Riyami Advocates & Muhyealdeen International Legal Consultants, said the ruling highlights a more balanced framework.“The judgment shows how the new AML law provides clearer guidance to courts, allowing limited judicial discretion without weakening the overall safeguards designed to protect the integrity of the AML regime.”

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