The High Court has affirmed the legal right of private banks in Guyana to terminate customer accounts based on internal risk assessments, dismissing major claims brought by three members of the We Invest in Nationhood (WIN) political party against Citizens Bank Guyana Inc..
In a ruling handed down on May 14, Justice Nigel Niles found that the bank acted within its contractual rights when it closed the accounts of WIN members Amin Britton, Racquel King and Mark Goring in 2025. The judge, however, ruled that the institution failed to provide reasonable notice before ending the banking relationship and awarded each applicant G$50,000 in nominal damages.
The applicants had challenged the bank’s decision after receiving letters dated July 31, 2025, informing them that their accounts no longer aligned with the bank’s “risk appetite” and instructing them to withdraw their funds within five working days.
Represented by attorney Darren Wade, the trio argued that the account closures were politically motivated, discriminatory and contrary to anti-money laundering legislation. They sought more than G$100 million in damages, including aggravated and exemplary compensation.
Attorney Reon Miller appeared on behalf of the bank, which maintained that banking relationships are contractual and can be terminated where customers no longer fit the institution’s compliance or risk profile.
The court agreed with the bank on several central legal issues, ruling that financial institutions are not required to establish “good cause” before ending indefinite banking relationships, once customers are given reasonable notice.
Justice Niles held that private commercial banks are entitled to determine their own risk exposure and are not subject to public law obligations such as judicial review, procedural fairness or natural justice in ordinary commercial banking decisions.
“A bank retains the right to terminate an indefinite banking relationship on reasonable notice,” the judge stated, while noting that no constitutional breach had been established by the applicants.
The court also rejected attempts to rely on the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act, ruling that enforcement authority under the legislation rests with regulatory agencies such as the Bank of Guyana and the Director of Public Prosecutions rather than private citizens.
Justice Niles further dismissed claims that the bank owed the applicants duties of trust, confidence and good faith, describing the banker-customer relationship as fundamentally contractual in nature.
Despite siding largely with the bank, the judge found that the five-day notice period provided to the applicants was inadequate and amounted to a breach of contract.
The court concluded that customers must be afforded sufficient time to secure alternative banking arrangements before accounts are terminated. However, Justice Niles found no evidence of significant financial losses that would justify the extensive damages sought.
Each party was ordered to bear its own legal costs.
The case emerged amid heightened scrutiny of Guyana’s banking sector following U.S. sanctions imposed in June 2024 against WIN leader Azruddin Mohamed, his father Nazar Mohamed, and several associated businesses.
The United States accused the men of public corruption and evading more than US$50 million in taxes linked to gold exports. U.S. authorities later filed an 11-count indictment in the Southern District of Florida alleging offences including wire fraud, money laundering, customs violations and conspiracy.
American prosecutors are seeking the extradition of both men to face the charges.
Following the sanctions, several local banks, including Demerara Bank Limited, Guyana Bank for Trade and Industry and Citizens Bank, moved to close accounts associated with WIN candidates and affiliates after conducting internal compliance reviews tied to sanctions exposure.