Halima Buba, the Managing Director/CEO of SunTrust Bank Nigeria Limited, and Innocent Mbagwu, the bank’s Executive Director/Chief Compliance Officer (CCO), are embroiled in a significant legal challenge involving alleged money laundering of $12 million. Their scheduled arraignment before the Federal High Court in Abuja on Tuesday was unable to proceed due to the absence of the defendants in court.

The case, initiated by the Economic and Financial Crimes Commission (EFCC), accuses Buba and Mbagwu of conspiring to launder the $12 million through cash payments. These actions allegedly violated multiple provisions of the Money Laundering (Prevention and Prohibition) Act, 2022. Specifically, they are accused of conspiracy and aiding cash payments to various individuals involving millions of dollars, exceeding the prescribed threshold and bypassing financial institutions. These acts are contrary to Sections 21(a), 2(1), and 9(1)(d) of the Act, and are punishable under Section 19(2)(b) of the same legislation.

During the court session presided over by Justice Emeka Nwite, the EFCC's lead counsel, Senior Advocate Ekele Iheanacho, informed the court that the prosecution had been unsuccessful in serving the defendants with the charges. "The prosecution has not been able to serve the defendants. Ironically, they are apparently aware of today’s proceedings as their legal representatives are in court," Iheanacho stated, noting that the defence counsel had indicated a willingness to accept service on behalf of their clients.

To resolve the service issue, the EFCC intends to file an ex parte motion for substituted service, adhering to Section 382(5) of the Administration of Criminal Justice Act (ACJA). "We do not oppose this but we wish to comply with Section 382(5) of the ACJA, which requires us to bring an application for substituted service by way of an ex parte application," Iheanacho explained. He added that this application could be addressed before the next adjourned date, and both parties had agreed to reschedule the arraignment for June 4, 2025.

Representing the defendants, J.J. Usman (SAN), stated that his clients, the SunTrust Bank executives, became aware of the hearing through social media reports. "Our clients instructed us to appear in court because they read about the case on social media. They have not been served," Usman clarified. He further mentioned, "We approached the learned silk for the prosecution and undertook to accept service on behalf of our clients. We asked him to serve us, but he refused." Usman cautioned that failing to serve through counsel could lead to "unnecessary arrests and public embarrassment" for the defendants, and pleaded with the court to direct that service be effected on them, assuring their appearance on the next date.

However, Iheanacho dismissed the defence's warning about potential arrests as speculative, insisting that proper procedure necessitated a formal court order for substituted service. Following these submissions, Justice Nwite granted the adjournment. He directed the EFCC to file the application for substituted service by May 29, 2025, and rescheduled the arraignment for June 4, 2025.

SunTrust Bank Nigeria Limited is a newer financial institution in Nigeria, with its headquarters located at 1, Oladele Olashore Street, Off Sanusi Fafunwa Street, Victoria Island, Lagos. The bank is chaired by Olanrewaju Shittu, a former director at the Central Bank of Nigeria (CBN).