05/06/2026
HARLEM Solicitors
LAWScope
Visualising the Law. Clarifying the Position.
๐๐จ๐จ๐ค:
โWhy should a bank suddenly freeze/restrict a customer's account without his/her consent, even when he/she has done nothing wrong?โ
๐๐จ๐ง๐ญ๐๐ฑ๐ญ:
Generally, banks do not have the arbitrary powers to freeze/restrict a customer's account. Where this occurs, a customer has the right to request that the bank provide the reason in writing. A bank account represents a contractual and fiduciary relationship between the customer and the bank. The customer's funds cannot be arbitrarily locked away simply because the bank chooses to do so.
๐๐ฎ๐๐ข๐๐ข๐๐ฅ ๐๐ฎ๐ญ๐ก๐จ๐ซ๐ข๐ญ๐ฒ
In UBA Plc v. Antai (2018) LPELR-49786 (CA), the Court emphasized that a bank cannot unilaterally place restrictions on a customer's account without lawful authority.
The principle emerging from the decision is that a bank cannot close, freeze, or place a ban on an account except where a court order is issued directing the bank to restrict the account, or where agencies such as the Economic and Financial Crimes Commission (EFCC) or other authorities request that banks restrict an account during an investigation. Banks may also restrict customers' accounts if there is a suspicion of unusual activity, such as fraud or money laundering. Failure to fulfill account opening terms or provide the required documentation may also lead to restrictions.
๐๐จ๐ง๐๐ฅ๐ฎ๐ฌ๐ข๐จ๐ง:
A bank serves as a custodian and facilitator of financial transactions and must act within the limits imposed by law.
Consequently, where an account restriction is imposed without lawful authority, the affected customer may have legal remedies available, including seeking the lifting of the restriction and, in appropriate circumstances, claiming damages for losses suffered.
Read more:
https://lnkd.in/eT-SCyRQ
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