In a landmark ruling with significant implications for banking customers, Guyana’s High Court has dismissed a legal challenge against Scotiabank’s account closure practices while simultaneously calling for legislative reform to protect consumer rights.
Justice Nicola Pierre ruled Tuesday that Scotiabank acted within its contractual rights when it terminated the account of Gobin Harbhajan, a political candidate for the We Invest in Nationhood (WIN) party. The judgment emphasized that the Personal Financial Services Agreement signed by all customers explicitly permits the bank to close accounts without cause provided 30 days’ notice is given.
“This constitutes an unqualified contractual right that does not require the decision-maker to form any judgment or evaluation,” Justice Pierre stated in her written decision, underscoring the bank’s legal position under current contract law.
The case emerged after Scotiabank closed Harbhajan’s account in August 2025 despite it being in good financial standing. The WIN candidate alleged political discrimination, claiming the closure resulted from his party affiliation and that all WIN members had similarly lost banking access.
However, the court found no substantiated evidence supporting these claims. Affidavits from Scotiabank’s representative Vibert Jones denied any knowledge of Harbhajan’s political affiliations or any systematic closure of WIN members’ accounts. Justice Pierre noted that “mere assertion or correlation is insufficient” to prove political discrimination.
The ruling addressed multiple legal dimensions, including:
1. Contract Law: The court affirmed that banking relationships remain primarily governed by private contract terms rather than public law principles
2. Procedural Fairness: Justice Pierre determined that banks owe no duty of procedural fairness in account closures as they administer private services, not government functions
3. Regulatory Compliance: Allegations of Anti-Money Laundering Act violations were dismissed as these obligations are owed to regulatory bodies, not individual customers
Despite upholding Scotiabank’s actions, Justice Pierre issued a compelling call for legislative reform, noting the critical importance of banking access in modern digital societies. She recommended the National Assembly consider establishing an independent financial services ombudsperson to investigate account closure complaints—a mechanism already implemented in other jurisdictions.
“The purely contractual nature of the banker-customer relationship that insulates banks from liability at common law is undesirable given the centrality of banking services in contemporary life,” the judge observed, highlighting the growing disconnect between contractual rights and societal needs.
The decision also clarified that unincorporated political parties like WIN lack legal personality, preventing collective claims, and found no evidence supporting claims of reputational damage or improper sanctions against the party or its members.