KAMPALA — The High Court of Uganda has ordered dfcu Bank to pay the legal costs of an application filed by a customer after the bank unlawfully withheld more than 80 million shillings for over two years.
In a judgment delivered Feb. 23, 2026, Justice Joyce Kavuma of the Civil Division ruled that the bank’s continued restriction on Bob Ainebyoona’s account was a violation of constitutional property rights. The court directed the bank to restore full access to the account within seven days.
The legal battle began following a 2020 incident where Ainebyoona was detained at the bank’s head office over allegations of theft involving 13.1 million shillings. Although he was acquitted of all criminal charges in December 2023, dfcu Bank refused to unfreeze the account, citing internal suspicions and anti-money laundering obligations.
Justice Kavuma rejected the bank’s arguments, noting that dfcu Bank failed to follow legal procedures by not reporting these suspicions to the Financial Intelligence Authority. The judge emphasized that banks cannot act as parallel tribunals by maintaining indefinite holds on customer funds based on unproven allegations.
While the court did not award general damages due to a lack of quantified proof of loss, the order for dfcu Bank to pay the costs of the application highlights the procedural failures of the institution.
The ruling serves as a significant precedent for the banking sector, reinforcing that financial institutions must adhere strictly to due process when implementing anti-money laundering measures. Unless an appeal is filed, the bank must comply with the order immediately, ending years of litigation for the customer.
