Palmfox v DFCU Bank (U) Ltd & 2 Ors
Palmfox v DFCU Bank (U) Ltd & 2 Ors (MISCELLANEOUS CAUSE NO.423 OF 2017) [2019] UGHCCD 51 (7 March 2019)
The court found a clear nexus between the applicant and D9 Club through its majority shareholder and managing director, Tadeo Seruwagi, who was an affiliate of the Ponzi scheme. The regulatory authorities acted within their statutory mandates under the Financial Institutions Act and Anti-Money Laundering Act to freeze the applicant’s accounts based on reasonable suspicion of proceeds of crime. The applicant failed to demonstrate that the respondents’ actions were unlawful, ultra vires, or violated its rights. The court held that the lifting of the corporate veil was justified in this context…
Source excerpt
- Freezing Of Bank Accounts
- Anti Money Laundering Compliance
- Lifting Corporate Veil
- Judicial Review
- Ponzi Scheme Investigation