The Federal Capital Territory High Court, presided over by Hon. Justice F.E. Messiri, has ruled that Sterling Bank PLC’s unilateral restriction of Uche Ojembe & Associates Legal Consult’s (UOALC) account without a valid court order was unlawful.
The Court ordered the immediate lifting of the restriction and reactivation of the account in response to the case argued by Uchenna Ojembe, Esq., LL.M, Principal Counsel at UOALC.
The case originated from Sterling Bank’s decision to restrict UOALC’s account, citing a requirement for a Special Control Unit Against Money Laundering (SCUML) certificate. The firm, standing firm in their professional integrity, declined to provide the certificate, arguing that legal practitioners are exempt from this requirement based on the authoritative precedent set by the Court of Appeal in Central Bank of Nigeria v. Registered Trustees of the Nigerian Bar Association & Attorney General of the Federation [CA/A/202/2015].
In presenting the case, Uchenna Ojembe, Esq., argued that it was unlawful for the bank to unilaterally restrict an already functioning account without a valid court order, as such action constitutes a fundamental breach of the agreement between the bank and its customer. He also emphasized that the legal principle established in the now-repealed Money Laundering (Prohibition) Act, 2011, which exempts law firms from the SCUML certificate requirement, remains relevant under the Money Laundering (Prohibition) Act, 2022, as both statutes are essentially identical in their treatment of law firms.
Justice Messiri ruled in favor of UOALC, concluding that Sterling Bank’s action was unauthorized and lacked legal foundation. The court mandated the immediate lifting of the restriction and the full reactivation of the firm’s account. The court’s decision emphasized that banks must follow due process and cannot unilaterally impose restrictions on law firms’ accounts without judicial oversight.