14/04/2026
The Commercial Division of the High Court of Uganda (Civil Suit No. 0235 of 2021) has dismissed a case involving money laundering allegations, even while finding the bank exceeded its authority.
KEY FINDINGS:
Money Laundering Confirmed: The Court held that the plaintiff's conduct constituted money laundering under The Anti-Money Laundering Act. Key factors included wilful blindness, links to a rebel group, and vague, large-scale transactions.
Bank Overreach: The Court did find that Stanbic Bank exceeded its authority by reversing a credit without a court order.
Case Dismissed: Despite the bank's actions, the Court dismissed the plaintiff's suit with costs, citing public policy.
PRINCIPLE:
"Ex turpi causa non oritur actio"
(From a dishonourable cause, no action arises.)
The judgment, delivered on 16th March, 2026 by Hon. Justice Stephen Mubiru, reinforces that courts will not enforce claims rooted in illegal transactions.
