High Court rules GBTI acted in bad faith when closing WIN-linked accounts

– bank signals intention to appeal decision

The High Court on Monday ruled that the Guyana Bank for Trade and Industry Limited (GBTI) breached an implied contractual duty of good faith when it terminated the accounts of several individuals linked to the We Invest in Nationhood (WIN) political party, even as the bank successfully defended the majority of claims brought against it. The decision was delivered by Justice Nicole Pierre in matters filed by multiple account holders, including Heerawattie Mangaldeen, Abdul Ally, Vanessa Bagot and Natalia Angela. While the court dismissed key allegations, such as claims of unlawfulness, discrimination, breaches of anti-money laundering laws and substantial damages, it found that the manner in which the accounts were closed did not meet the standard of good faith expected in contractual banking relationships. Nominal damages and costs were awarded to the claimants. The case stemmed from a wave of account closures by commercial banks in mid-2025, just months ahead of Guyana’s General and Regional Elections. At the centre of the controversy is the political party We Invest in Nationhood (WIN), founded in June 2025 by United States (US) Sanctioned businessman Azruddin Mohamed, who went on to lead the party into the elections and later became Leader of the Opposition. However, before the formation of the party, Mohamed and his family had been sanctioned by the US in June 2024 under the Global Magnitsky framework over allegations of corruption and gold smuggling. Following those sanctions, local financial institutions began reassessing their exposure to individuals and entities linked to the Mohamed family, citing the need to comply with international banking standards and protect critical correspondent banking relationships. By July 2025, several candidates associated with the WIN party received notices from banks, including GBTI, that their accounts would be closed and banking services discontinued. Reports at the time indicated that approximately 20 individuals connected to the party were affected, as banks moved to reduce perceived financial and regulatory risks. In response, a number of affected individuals initiated legal proceedings against multiple banks, including GBTI, arguing that the closures were unjustified and unlawful. They contended that their accounts were in good standing, no suspicious transactions had been identified and no adequate explanation was provided before termination. The claimants further argued that the decisions were based solely on their association with the WIN party and therefore breached their contractual rights, including the duty of good faith. They also maintained that no sanctions had been imposed on them individually or on the party itself, and that the banks’ actions caused financial disruption and reputational harm.
The issue gained further traction after correspondence from the US Office of Foreign Assets Control (OFAC) indicated that sanctions against one individual do not automatically require financial institutions to sever ties with non-sanctioned persons solely due to association. In her ruling, Justice Pierre rejected the broader claims against GBTI, including assertions that the bank acted unlawfully or discriminatorily, or that it violated statutory obligations under anti-money laundering legislation. In a statement following the ruling, GBTI acknowledged the court’s findings but maintained that its actions were guided by regulatory obligations and prudent risk management. The bank in a statement related that the Court dismissed the majority of the claims brought against the Bank, including allegations of unlawfulness, discrimination, breach of statutory obligations under anti-money laundering legislation and claims for substantial damages.
“These findings affirm the Bank’s adherence to its regulatory responsibilities and its commitment to operating within the framework of Guyana’s financial laws and international compliance standards.” While GBTI respectfully notes the Court’s findings. GBTI has taken the decision to appeal certain findings in the ruling, remaining unwavering in its commitment to upholding the highest standards of regulatory compliance and risk management; acting responsibly and prudently in protecting the financial system and continuously strengthening its policies, procedures and decision-making frameworks.