The Commercial court has dismissed a suit filed by Entebbe mayor Fabrice Brad Rulinda against Stanbic Bank Uganda over a disputed deposit of $73,262.50 (about Shs 273 million) linked to the M23 rebel group in the Democratic Republic of the Congo (DRC). In a judgment delivered electronically on Monday, justice Stephen Mubiru ruled that Rulinda could not sustain his claim against the bank, citing the illegality surrounding the transaction. Court records show that Rulinda operated a dollar account at Stanbic Bank’s Bugolobi Village Mall branch. On August 10, 2017, M/s Green Global Corporation transferred $422,957.50 to his account, followed by an additional $73,262.50 on August 11, 2017. The bank later reversed the smaller deposit and returned it to the sender. Rulinda sued the bank, arguing that the reversal was done without his consent and amounted to a breach of their banking contract. He sought recovery of the funds, interest, general damages and legal costs. However, Stanbic, through M/s Kyagaba & Otatiina Advocates (Dentons Advocates), maintained that the transactions were unusual and suspicious. The bank reported the matter to the Financial Intelligence Authority (FIA) after Rulinda reportedly failed to provide documentation explaining the source and purpose of the funds. The bank also stated that Green Global Corporation requested the reversal after discovering that the funds were part of an alleged investment scam. In his ruling, Justice Mubiru examined provisions of the Anti-Money Laundering Act and the legal doctrine of wilful blindness, which treats individuals who deliberately ignore the source of funds as having knowledge of their criminal origin. The court found that Rulinda gave inconsistent explanations regarding the source of the funds, including claims related to gold, oil, transport and construction. It further noted that the money was linked to the M23 rebel group in eastern DRC, which has been sanctioned by the United Nations over human rights abuses and destabilising state authority. Justice Mubiru held that Rulinda failed to take reasonable steps to verify the source of the funds and that the circumstances pointed to strong indicators of a criminal origin. Although the specific underlying offence was not established, the handling of the funds suggested unlawful conduct. The judge also observed that while Stanbic breached the banking contract by reversing the funds without a court order, the contract itself was unenforceable because it was tainted by illegality. He cited the legal principle ex turpi causa non oritur actio – meaning no legal action can arise from a dishonourable cause. The court concluded that Rulinda’s conduct amounted to money laundering, as he knowingly handled funds likely derived from criminal activity without verifying their source. The case was consequently dismissed, with Rulinda ordered to pay costs to Stanbic Bank.The post M23 rebels: Entebbe mayor Rulinda loses Shs 273m case against Stanbic bank appeared first on The Observer.