This traditional approach can be seen in the case of Serbian Loans3 any contract that is not a contract between states in their capacity as subjects of international law is based on the municipal [domestic] law of some country The rules thereof may be common to several states and may even be established by international conventions or customs, and in the latter case may possess the character of true international law governing relations between states.4 Therefore when it comes to investment contracts between states then it will have elements of adhering to the contractual word of the agreement; as well as the duty of care that the obligations are met as in public international contractual agreements. There has been a suggestion that cases that are on a private international matter allows the domestic court that makes the decision have an extraterritorial effect in imposing the obligation across borders, i.e. applying the higher standard of obligation and care that public international law holds.5 On the other hand, the case of Holmes v Bangladesh Biman6 argued that foreign jurisdictions have no legitimate reason for subjecting their civil law on foreigners in their own country. Therefore these two cases make it difficult for correctly pursuing fraud, negligence or any circumstance that leads to an action when it is a case of foreign investment, i.e. where would you make the action and could you legally serve and enforce the action papers in foreign jurisdiction.
However, it seems that the Libyan Bank Case was ahead of its time although it did surround a time of terrorism that was strikingly the same as the 9-11 attacks, such as the Lockerbie case. Therefore business law is under an obligation at state and at international levels to protect security, by imposing a duty for businesses to disclose any actions that would indicate terrorism, organized crime or threaten national and international security. Yet, as the following case study will illustrate that freezing assets is a common approach and duty of the bank that is mainly prevalent in Post 9-11, which the Libyan Bank Case failed to do.7
On 2 September, High Court of Justice in London rules in favor of Libya, orders Bankers Trust London to transfer to Libyan Arab Foreign Bank $131 million, plus accrued interest, that has been blocked by US assets freeze. US Treasury authorizes payment on 9 October.
2) In the era of terrorism and protection of the security of states, this means that financial institutions and international businesses are embarking on a different era of state co-operation. Companies are faced with being diligent in ensuring that they are free from fear of money laundering investigations. On of the strictest guidelines can be seen in the EU, therefore Barclays Bank Plc the fourth largest bank in the world ensures that their regulations are strict as their mother state is the UK. It has been realized that one of best methods to stop organized crime is through stricter policing of finances. The EU has become a lot stricter in this area, especially in respect to opening bank accounts and the ID required