The High Court Commercial Division in Kampala has dismissed a lawsuit filed by Entebbe Municipality Mayor Fabrice Brad Rulinda against Stanbic Bank Uganda, rejecting his claim for approximately Shs273 million (equivalent to $73,262.50) in disputed funds.

In a judgment delivered electronically on March 17, 2026, Justice Stephen Mubiru ruled that the transaction was tainted by illegality, making Rulinda’s banking contract with the bank unenforceable.

The court applied principles from Uganda’s Anti-Money Laundering Act and the doctrine of ex turpi causa non oritur actio (no action arises from a dishonorable cause), finding that Rulinda could not recover the money due to suspicions surrounding its origins.

The case stemmed from transfers in August 2017: M/S Green Global Corporation deposited $422,957.50 into Rulinda’s dollar account at Stanbic Bank’s Bugolobi Village Mall branch on August 10, followed by $73,262.50 the next day.

The bank reversed the second deposit after deeming the transactions suspicious, reporting them to the Financial Intelligence Authority, and later received a reversal request from the sender, who alleged the funds were part of an investment scam.

The court linked the money to the M23 rebel group in eastern Democratic Republic of Congo—a UN-sanctioned entity accused of human rights abuses and destabilizing activities.

Rulinda provided inconsistent explanations for the funds’ source, including references to gold, oil, transport, and construction ventures.

Justice Mubiru cited “wilful blindness,” ruling that Rulinda failed to adequately verify the legitimacy of the funds despite red flags, and that handling them constituted money laundering under the circumstances.

The judge ordered Rulinda to pay the bank’s legal costs.

No appeals or further actions were mentioned in the ruling.

The decision reinforces Uganda’s enforcement of anti-money laundering regulations and underscores that courts will not uphold claims tied to potentially illicit proceeds, even in commercial disputes.