By Our Reporter
KAMPALA
The High Court in Kampala has ordered DFCU Bank to unblock a customer’s bank account that had been frozen for more than two years, describing the continued restriction as unlawful.
In a ruling delivered on February 23, 2026, Justice Joyce Kavuma directed the bank to restore full access to Bob Ainebyoona’s account within seven days and to pay the legal costs of the suit.
Court heard that Ainebyoona, a holder of a Dembe account with DFCU, had been operating his account normally until he attempted to withdraw money at the bank’s Naalya branch in Kampala. He was referred to other branches and later to the bank’s head office, where he was arrested over allegations linked to Shs13.1m in MKASH transactions.
He was subsequently charged in court but acquitted in December 2023 after the trial magistrate found that he bore no criminal responsibility. The trial court ruled that the disputed funds originated from bitcoin sales conducted by another suspect.
Despite the acquittal, the bank maintained restrictions on his account, which reportedly contained more than Shs80m.
In its defence, DFCU argued that it froze the account on suspicion that the funds could be linked to fraud and maintained that it was acting in compliance with the Anti-Money Laundering law. The bank contended that a criminal acquittal does not bar a financial institution from conducting its own independent investigations.
However, Justice Kavuma held that the law requires financial institutions to report suspicious transactions to the Financial Intelligence Authority within 48 hours. The court found no evidence that the bank had made such a report.
“The respondent could not lawfully continue restricting the applicant’s access to his funds based solely on unproven suspicions,” the judge ruled, warning that allowing banks to indefinitely freeze accounts without due process would amount to assuming judicial powers.
The court further cited the constitutional right to property, noting that maintaining the freeze for over two years after the acquittal was illegal.
Although Ainebyoona had sought compensation for damages, the court declined to award any monetary relief, citing lack of proof of specific financial loss. He was, however, granted costs of the suit.
The bank has seven days to comply with the order or file an appeal.
