On or about October 2020, Plaintiff received USD 65,683.50 from USVSST for the benefit of Mary Njoki Muiruri. That on or about 16th November 2020, the Plaintiff acting upon MM-LAW’s erroneous instructions, inadvertently through its bank Citibank NA, remitted through electronic banking means USD 65,683.50 to Muiruri’s bank account number 001****001 held by DTB. It was discovered that the error occurred as a result of the close similarity between the 1st Defendant’s name – Mary Ngunyi Muiruri and that of the intended lawful beneficiary, Mary Njoki Muiruri and that except for their middle names
A case in which Diamond Trust Bank confused names and deposited funds into the wrong account has revealed exciting details in court. The Settlement Fund sued the bank after they erroneously deposited USD 65,683.50 in the account of Mary Wairimu Muiruri instead of Mary Njoki Muiruri from the 1998 United States Embassy Bombing Qualified Settlement Fund.
The Fund is authorized to administer and distribute proceeds of recovery obtained on behalf of some of the victims of the 7th August 1998 terror attack and the bombing of the US Embassy in Nairobi.
A ruling delivered on 7th July 2023 by High Court Judge F. Mugambi revealed how officers at the bank slept on their job. In the suit, a demand was placed to have DTB refund the funds which had been withdrawn by Mary Muiruri with claims that the bank ought to have acted on the Settlement Funds’ recall by either freezing or stopping any transaction by Muiruri in respect of the subject funds.
The management was accused of failing to conduct due diligence through general and established banking practices, norms, standards and/or regulations. The management knew and/or ought to have ascertained and/or verified the source of the funds before allowing withdrawals to be made.
It is worth noting that despite the recall and notification of the reason for the erroneous remittance of the said funds into Muiruri’s bank account, DTB still failed to repatriate the said funds back to the 1998 United States Embassy Bombing Qualified Settlement Fund.
Further, it was noted that DTB bank notified Citibank NA, that it cannot reverse the transaction and repatriate the money without the consent of the Muruiki!
According to the case details, on or about October 2020, Plaintiff received USD 65,683.50 from USVSST for the benefit of Mary Njoki Muiruri. That on or about 16th November 2020, the Plaintiff acting upon MM-LAW’s erroneous instructions, inadvertently through its bank Citibank NA, remitted through electronic banking means USD 65,683.50 to Muiruri’s bank account number 001****001 held by DTB. It was discovered that the error occurred as a result of the close similarity between the 1st Defendant’s name – Mary Ngunyi Muiruri and that of the intended lawful beneficiary, Mary Njoki Muiruri and that except for their middle names.
The 1998 United States Embassy Bombing Qualified Settlement Fund claims that Muiruri does not have any rightful or legal claim or title to the USD 65,683.50 that was erroneously transferred to her bank account. That on or about 10th December 2020, following the realization of the inadvertent error, they through its bank Citibank NA, issued a recall of USD 65,683.50 from DTB which recall DTB acknowledged.
To show how DTB officials slept on their job, despite receiving a recall request and acknowledging the same, it was discovered that as of 16th December 2020, Muiruri Defendant did not have access to the funds and DTB ought to and was legitimately expected to have frozen and/or blocked the said funds having been made aware prior thereto that there was a dispute over the funds.
However, DTB in a quick rejoinder in a replying affidavit of DTB’s Legal Officer, Francis Kariuki sworn on 28th February 2022 claimed DTB was not a party to the financial transactions and had no authority to freeze the accounts of Mrs Muiruri. It is also worth noting that even though Muiruri has failed to file her defence, it automatically follows that neither she nor DTB has any right or lawful claim or title to continue withholding the sum of USD 65,683.50 erroneously transferred to her account.
What is putting DBT on the receiving end is that it has admitted receiving the subject funds and has also acknowledged that a recall was issued for the subject funds, which DTB received on 11th December 2020 and that on 2nd February 2021, the Court issued an order blocking and/or freezing the Muiruri’s bank account number 001****001 or any other account held with DTB to block freezing and/or preserve the sum of USD 65,683.50 or its equivalent in whatever currency held pending the hearing and determination of this suit.
This is not the first time DTB is being accused of failing to conduct due diligence. During the dusitD2 hotel attack which left 21 people dead. DTB Eastleigh branch manager Francis Andayi was arrested and charged with failure to report suspicious activity regarding proceeds of crime and anti-money laundering, aiding and abetting the commission of a terrorism Act, as well as failure to report a suspicious transaction amounting to Ksh. 34.7 million. Being the branch manager, she knowingly failed to report suspicious activity involving transactions carried out at the branch.
