150 Rwandan cardholders are suing global payment company MasterCard, regional bank I&M, and the Rwanda government for USD 139 million, alleging unlawful detention and property confiscation following accusations of bank fraud and money laundering.
The lawsuit, filed before the East Africa Court of Justice, asserts violations of constitutional rights.
Represented by Joseph McDonald of McDonald and Company Advocates, the plaintiffs argue that their arrest by the Rwanda Investigation Bureau infringed on their rights.
The dispute centres on a group of Rwandan citizens who held Prepaid Mastercard Multicurrency Cards issued by I&M Bank (Rwanda).
The card, capable of holding 17 different currencies, allowed users to shift currencies within sub-wallets, leading to a 10 per cent profit through arbitrage.
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However, in January 2023, over 150 individuals were arrested on allegations of bank fraud and money laundering.
According to the applicants, they were detained without trial for more than three months, denied bail, extorted to transfer money to escrow accounts, and had their properties confiscated.
I&M Bank Rwanda reported losses of $10.3 million to fraudulent withdrawals between November 2022 and January 2023, triggering investigations.
The plaintiffs deny involvement in fraud, insisting they obtained the cards legitimately.
Ssemakula Ali Abaas, the first applicant, stated, "I have never committed fraud to acquire it. I fulfilled the requirements in the right way."
He disputed the bank's claim that the card was intended for transborder businessmen or travellers, asserting it was issued to anyone needing it without requiring travel documents.
Contrary to the bank's assertions, Abaas clarified that profits were legal, generated through currency exchanges facilitated by the bank.
He questioned how the bank could claim fraud when it controlled exchange rates.
MasterCard and I&M Bank's response to the allegations remains pending, as the case unfolds before the East Africa Court of Justice.
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