The High Court in Kampala has ordered DFCU Bank to unblock a customer’s account that had been frozen for more than two years.
In a ruling delivered on February 23, 2026, Justice Joyce Kavuma said the bank acted unlawfully by continuing to restrict Bob Ainebyoona’s account without following the proper legal procedures. The court directed the bank to restore full access to the account within seven days and to pay the legal costs.
Ainebyoona held a Dembe account with DFCU and had been banking normally until he tried to withdraw money at the Naalya branch. He was referred to other branches and later taken to the bank’s head office, where he was arrested over allegations linked to Shs13.1 million in MKASH transactions.
He was charged in court but acquitted in December 2023 after the trial magistrate found he had no criminal responsibility. The court ruled that the disputed money came from bitcoin sales by another suspect.
Despite the acquittal, the bank kept his account frozen. The account contained more than Shs80 million.
DFCU argued that it restricted the account because it suspected the funds could be linked to fraud and said it was acting under the Anti-Money Laundering law. The bank also claimed that a criminal acquittal does not stop a financial institution from carrying out its own investigations.
However, Justice Kavuma said the law requires banks to report suspicious transactions to the Financial Intelligence Authority within 48 hours. The court found no evidence that DFCU made such a report.
The judge noted that the bank could not continue holding the customer’s money based only on unproven suspicions, warning that doing so would allow banks to act like courts without legal authority.
The ruling also cited the constitutional right to property, stating that keeping the account frozen for over two years after the acquittal was illegal.
Although Ainebyoona had asked for compensation, the court declined to award damages because he did not provide proof of specific financial loss. He was, however, granted legal costs.
The decision means DFCU must unfreeze the account within seven days unless it files an appeal.
