The police have cleared Equity Bank of any wrongdoing in a fraudulent gold transaction that resulted in a loss of over Shs3 billion for Canadian national Clifford Potter.
Last week, it was reported that Police had called on Equity Bank and Stanbic Bank to clarify the circumstances surrounding the loss of over Shs 3 billion by Canadian national Clifford Potter in a fraudulent gold transaction.
According to investigations, Potter had deposited approximately USD 1,000,000 between 2016 and 2019 into an account held by Simon Byansi at Equity Bank Uganda, under a fraudulent gold scheme. The money was immediately withdrawn from the account. Potter, through his lawyers, Muwema & Co. Advocates, demanded a refund from the banks, citing their failure to prevent suspicious transactions.
However, further investigations by the Uganda Police have revealed new information that clears Equity Bank of any wrongdoing. It was found that the bank had complied with all Anti-money laundering (AML) procedures and obtained approvals from the Financial Intelligence Authority (FIA) of Uganda.
The bank had also conducted Customer due diligence (CDD) practices, which are legally recognized rules designed to detect and report AML violations. Despite this, Potter allegedly did not receive the gold he was expected to receive, and he unsuccessfully attempted to recover the funds paid.
Seven years later, Potter’s lawyers wrote to the bank, claiming that proper AML procedures were not followed, allowing the customer to withdraw the money. However, the bank refuted these allegations and advised Potter to resolve the matter with his business associate.
The issue escalated, and Potter involved the police in June 2024, requesting the bank’s participation in an interview. The bank’s compliance team was engaged, and they provided evidence and further clarity to the Uganda Police on July 10, 2024.
Following the investigations, Equity Bank has been absolved of any wrongdoing, with documentation confirming that the bank carried out due diligence beyond what was required. The case highlights the importance of AML procedures and CDD practices in preventing fraudulent transactions in the financial system.
