Ugandan Court Faults Equity Bank for Freezing Client’s UGX85 Million

In a ruling that could redefine customer-bank relationships in Uganda’s financial sector, the High Court of Uganda has found Equity Bank Uganda Limited guilty of unlawfully freezing a customer’s account, a decision that may set a precedent for financial institutions operating in the country. The case, Barigye Innocent Herbert Baitwababo v. Equity Bank Uganda Limited, stemmed from the bank’s decision to freeze Barigye’s account over what it deemed suspicious transactions. However, Hon. Justice Ssekaana Musa ruled that Equity Bank acted in breach of its contractual obligations, as the customer had provided sufficient documentation to justify the funds in question. Background…