Lawyers Clarify: EFCC And Banks Cannot Freeze Customer Accounts Without Court Orders
In a recent development, a legal expert has urged Nigerian bank customers to pursue legal action against any bank that freezes their accounts without a court order. This advice follows a Federal Capital Territory (FCT) High Court ruling that deemed Guaranty Trust Bank Plc’s action of freezing a customer’s account without a court order as illegal.
Justice S.U. Bature delivered the ruling on January 31, 2024, in a case where Anita Abibat sued the bank for freezing her account without due process. The court ruled that the bank’s action violated the legal process and the banker-customer relationship.
The case began when Abibat discovered in September 2023 that her account had been frozen by the bank, allegedly on instructions from the Economic and Financial Crimes Commission (EFCC). Despite repeated complaints, the bank did not provide a satisfactory explanation, prompting Abibat to take legal action.
In defense, the bank argued that the claimant did not provide sufficient evidence to support her allegations. However, the court sided with Abibat, ruling that the EFCC must obtain a court order before instructing a bank to freeze any account.
The court’s decision emphasized that the proper legal procedure requires a court’s permission before a bank can freeze an account. The judge also awarded N2 million in damages to Abibat for the losses she incurred due to the account restriction.
Public interest lawyer Opatola Victor, in an exclusive interview, affirmed the court’s decision, stating that banks and law enforcement agencies must secure a court order before freezing any account. He cited several legal precedents that reinforce this position and advised customers to seek legal redress if their accounts are frozen without a court order.
This ruling underscores the importance of following due process and protecting the rights of bank customers in Nigeria.
