# Knowing receipt and dishonest assistance

> **Key takeaway:** Knowing receipt: beneficial receipt of trust property + unconscionable knowledge (Akindele). Dishonest assistance: assistance + objective dishonesty (Tan/Barlow Clowes). Personal remedies; proprietary if property remains. Distinct claims — plead both if needed.

- **Jurisdiction:** England & Wales
- **Practice area:** Trusts And Chancery
- **Last reviewed:** 2026-08-04
- **Interactive page:** https://kttclegal.info/library/notes/TrustsAndChancery/knowing-receipt-dishonest-assistance
- **Keywords:** knowing receipt, dishonest assistance, Akindele, Twinsectra, Barlow Clowes, accessory liability, breach of trust, constructive trustee

## What is this about?

Third parties who receive trust or fiduciary property, or who assist a breach of trust/fiduciary duty, may face personal equitable liability. Knowing receipt and dishonest assistance are the principal accessory claims alongside proprietary tracing.

## What is the core rule?

Knowing receipt: the defendant receives trust property (or its traceable proceeds) in breach of trust, for their own benefit, with sufficient knowledge to make retention unconscionable (BCCI v Akindele). Dishonest assistance: the defendant assists a breach of trust or fiduciary duty and is dishonest by the objective standard informed by the defendant's actual knowledge/beliefs (Twinsectra as clarified by Barlow Clowes; Ivey-aligned objectivity). Remedies are typically personal account/compensation; proprietary claims require ongoing identifiable property.

## What are the elements or test?

1. Is there a trust or fiduciary breach disposing of property/duty?
2. Receipt claim: beneficial receipt of trust property + knowledge/unconscionability?
3. Assistance claim: assistance + dishonesty?
4. Can property still be traced for proprietary relief?
5. Limitation and insolvency of the primary wrongdoer?

## Which authorities matter?

- **Bank of Credit and Commerce International (Overseas) Ltd v Akindele [2001] Ch 437** — Court of Appeal unconscionability/knowledge test for knowing receipt.
- **Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378; Twinsectra Ltd v Yardley [2002] UKHL 12; Barlow Clowes International Ltd v Eurotrust International Ltd [2005] UKPC 37** — Dishonest assistance standard — objective dishonesty with subjective knowledge elements refined across these authorities.
- **Novoship (UK) Ltd v Mikhaylyuk [2014] EWCA Civ 908, [2015] QB 499** — Remedies against dishonest assistants, including account of profits in some circumstances.

## How does this apply in practice?

Banks and professionals face these claims in fraud fallout. Plead carefully between receipt, assistance, and unjust enrichment. Pair with tracing and fiduciary duties notes.

## What are common pitfalls?

- Conflating knowing receipt with dishonest assistance elements
- Assuming negligence alone equals dishonesty for assistance
- Pursuing proprietary claims after dissipation without personal fall-back
- Under-investigating knowledge at the time of receipt

## When would a practitioner use this?

Fraud recovery against recipients and professional facilitators; contribution strategy.

## Quick reference

Knowing receipt: beneficial receipt of trust property + unconscionable knowledge (Akindele). Dishonest assistance: assistance + objective dishonesty (Tan/Barlow Clowes). Personal remedies; proprietary if property remains. Distinct claims — plead both if needed.

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*Reference material from [KTTC Legal](https://kttclegal.info/), not legal advice. Work product supports instructing solicitors and barristers under their supervision. England & Wales.*