Court Extends Freezing Directives on Defendant’s Accounts
Lilongwe, Malawi - A Ruling that Preserves Funds
The High Court has ruled to extend the freezing directives on the bank accounts of defendant Norman Paulosi Chisale for four months. This decision comes after the Claimant, Financial Intelligence Authority, applied for an extension of the freezing directives in respect of a transaction involving the defendant’s wife.
Background
The transaction in question involved the presentation of a K30 million cheque at First Capital Bank by the defendant’s wife. The court heard that the transaction was reported as suspicious and the Claimant sought to preserve the funds from being dissipated.
Defendant’s Objections
The defendant objected to the application, arguing that the Claimant had failed to show how the transaction in question was linked to money laundering or any other offence under the Financial Crimes Act of 2017. The defendant also claimed that he had not benefited from the alleged offence and sought to invoke the spirit of section 108 of the Act.
Court’s Ruling
The court, however, dismissed the defendant’s objections, stating that the Claimant has established a good case for extending the freezing directives to allow it more time to make necessary inquiries concerning the matter. The court further ruled that the freezing directive issued by the Claimant on the bank accounts of the defendant is extended for four months from the date of this ruling.
Other Key Points
- The court refused the defendant’s prayer that his reasonable expenses be met from the frozen accounts, citing section 70 of the Financial Crimes Act.
- The decision aims to preserve the funds and prevent them from being dissipated or used for illegal purposes.
- The case will now be heard again in four months’ time, when the Claimant is expected to have completed its inquiries and reported back to the court.
Conclusion
The ruling comes as a blow to the defendant, who had hoped to access his frozen accounts to meet his daily needs. However, the decision aims to protect the integrity of the financial system and prevent any potential misuse of funds. The case will continue to unfold in four months’ time, when the Claimant will report back to the court with its findings.