Legal Action Against Banks Linked to Political Party
Five candidates associated with We Nationhood (Win), spearheaded by US-licensed businessman Azruddin Mohamed, have initiated legal proceedings against three commercial banks to shut their accounts, which they claim are tied to that political party.
Represented by lawyer Darren Wade, the banks named in the lawsuits include Citizen Bank Guyana, Trade and Industry Bank, and Demerara Bank Limited.
The lawsuits feature various plaintiffs: Dexter George challenges Citizens Bank, Ramona Woolford also targets Citizens Bank, Joel Ramesh sues Dexter George and Demerara Bank, and Petal Munroe alongside Alexia Henry bring a case against Guyana Bank for Trade and Industry Bank.
In these separate cases, the plaintiffs assert that the party continues to exist with distinct members, claiming that no sanctions have been levied against the candidates or parties involved. They describe the banks’ actions as illegal and discriminatory, arguing that the institutions have breached their obligations under contracts and trust, failing to adhere to legal standards against financing terrorism as outlined in Section 18(4) of the Anti-Money Laundering Act.
Each former bank account holder is seeking GY of $100,000 in damages. Their reasoning includes maintaining their accounts adequately and conducting transactions per bank protocols. However, they contend that the banks did not clarify their rationale for closing the accounts.
Despite adhering to banking policies, the plaintiffs pointed out they were not made aware of any breaches that would warrant account closures. They expressed that this abrupt account termination led to significant inconvenience, reputational harm, and financial disruptions.
Furthermore, they believe the banks’ actions infringe upon their rights to fair treatment, including the right to express their side. The plaintiffs argue that the banks have not complied with necessary statutory regulations linked to the Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Act.
The candidates’ U.S. counterparts have supposedly not indicated any concerns regarding connections with the Victory Party. U.S. Ambassador Nicole Theriot has also reportedly clarified that a recent incident was unrelated to the U.S. government, indicating a desire for distance from the matter.
The plaintiffs stated that, contrary to requirements under the AML/CFT Act and local banking laws, they were never asked for further documentation or clarifications relevant to their identities or the validity of their transactions, tied to their political status.
They argue that their accounts were closed solely due to their association with the candidates’ victory list and assert that there was no lawful justification for such terminations based on that association alone.
Additionally, they reference the U.S. Office of Foreign Assets Control’s guidance, which asserts that U.S. banks do not breach sanctions simply by processing transactions involving an authorized member of an organization unless there’s direct involvement from an unauthorized entity.
They have also pointed out concerns raised by the Carter Center’s Election Observer Mission regarding the election process, mentioning that while political campaigns have been largely peaceful, various threats toward public workers and excessive competition may jeopardize the election’s integrity.
