ActionAid petitions court over frozen bank accounts
Invaded. ActionAid offices in Kansanga that were raided in September. The organisation has petitioned court over their frozen bank accounts. FILE PHOTO
What you need to know:
- ActionAid is seeking court to declare that FIA directive to Standard Chartered Bank to freeze its accounts violates its fundamental rights protected under the Constitution.
Kampala. ActionAid International Uganda, a civil society organisation, has petitioned the Commercial Court to have their frozen bank accounts reopened.
On September 20 and 21, police raided and searched offices of ActionAid in Kansanga, Kampala, on grounds that the organisation was involved in money laundering.
According to the search warrant, police were supposed to access computer accessories (electronics), mobile handsets, money transfer related documents and bank related transaction documents.
According to court documents, ActionAid states that the Financial Intelligence Authority (FIA) closed its five bank accounts for various currencies, which were being operated by Standard Chartered Bank.
The FIA is a government agency established by Parliament to monitor, investigate and prevent money laundering in the country.
It is also responsible for enforcement of Uganda’s anti-money laundering laws and monitoring all financial transactions in the country.
Further, court documents show as of October 6, ActionAid had Shs538m on one of the accounts and $160, 689.87 (about Shs600m) on another totaling to more than Shs1b.
Explaining how they came to know their bank accounts had been frozen, the civil society organisation states that on various dates in October they attempted to make transactions on the accounts but were rejected by Standard Chartered Bank.
“Attempts to get an explanation from the second respondent (Standard Chartered Bank) were [fruitless] pointing to Bank of Uganda issuing a freezing order,” ActionAid petition reads in part.
“After a chain of correspondences between our lawyers and the 2nd respondent (Standard Chartered Bank), it was disclosed that the 1st respondent (FIA) had issued a freezing order dated October 20 under the Anti-Money Laundering Act 2013. The applicant (ActionAid) was not given an opportunity to be heard by the 1st respondent (FIA),” the petition further states.
ActionAid is seeking court to declare that FIA directive to Standard Chartered Bank to freeze its accounts violates its fundamental rights protected under the Constitution.
Shortly after a brief appearance in court yesterday, Mr Arthur Larok, ActionAid’s Country Director, who led a number of his staff wearing white T-shits with protest words “unfreeze ActionAid bank accounts”, lamented how this had crippled their operations.
“We are talking about 106 staff meaning 106 families are suffering,” he lamented.
