Tech entrepreneur blames JMMB for business collapse, bank rejects claims
Published:Sunday | September 14, 2025 | 12:12 AMKimone Francis - Senior Staff Reporter
A software engineer has filed a lawsuit against JMMB Bank (Jamaica) Limited, claiming the financial institution’s decision to freeze his account and withhold sums totalling US$35,000 or $5.6 million caused his ecommerce business to collapse.
Zachary Clemmings filed a claim in the Supreme Court, alleging that the bank froze his account following its use to process payments from his business website AZ Commerce.
He said the account was subsequently unfrozen but several transactions, which totalled US$35,036.54, were never credited to his account.
The business is registered with Companies Office of Jamaica in the field of website, software and mobile app development, the sale of online courses, E-books, audios, and digital art works.
Clemmings, in his 16-page claim, said he contacted a senior staff member at the bank’s Mandeville branch and was told that his account was frozen because of multiple transactions executed between December 2023 and February 2024, that were associated with business activities being done through a personal account.
He said he subsequently opened a business account and was further asked to demonstrate the legitimacy of his operations.
Clemmings said he provided “comprehensive details” and disclosed the backend operations of his business to substantiate its authenticity.
This, he said, included a tax compliance certificate.
However, he said, despite “full compliance”, the bank failed and or refused to effectively communicate or resolve the issue concerning the non-credited funds, “significantly impacting” his business operations and financial stability.
“The defendant’s retention of these funds without justification has led to considerable inconvenience and financial strain on the claimant,” the claim, filed in October 2024, said.
Clemmings wants the court to order the immediate crediting of the US$35,000 to his account, claiming JMMB owed him a duty of care to manage his accounts and has, instead, breached this duty by “unjustly” withholding the funds.
He said he has suffered loss and incurred expenses.
The software engineer is seeking interest pursuant to the Law Reform (Miscellaneous Provisions) Act on the amount found to be due to him and “at such rate and for such period as the court shall think fit”.
Last Wednesday, Clemmings told The Sunday Gleaner that JMMB’s decisions led to the permanent deactivation of his e-commerce website and associated services.
Unresolved chargebacks
He further accused the bank of causing a permanent ban from the e-commerce platform Shopify, through which he operated the business, and advertising services, including Google Ads, due to unresolved chargebacks from customers who could not access the courses they paid for.
He said the bank’s actions caused the irreversible loss of his business’ digital assets, reputation, and future earning potential.
According to Clemmings, the problems began only after his business achieved “exceptional growth”.
He said for six years between 2017 and 2023, he operated without issue through his personal JMMB account, processing what he described as modest revenues of between US$200 to US$400 monthly.
“The aggressive withholding of funds coincided precisely with a strategic rebrand, where I hired a professional marketer and replaced my male presence with female family and friends as the public faces of the business. This shift led to a surge in revenue to J$5 million per month,” said Clemmings.
He claimed that the bank’s compliance review was not triggered by legitimate concerns but by “prejudice and disbelief at the success of a young entrepreneur”, adding that he intends to seek damages of $100 million.
“JMMB’s actions did not just cause a temporary cash flow problem; they engineered a permanent business extinction event,” he argued.
But on Friday, the bank rebuffed Clemmings’ claims, telling The Sunday Gleaner via email that “it acted in accordance with its regulatory responsibilities”.
It declined further comment, noting that the matter is the subject of litigation.
The best interest
of our clients
“We wish to reaffirm that JMMB remains committed to acting in the best interest of our clients. Integrity, transparency, and accountability are at the core of our operations and are reflected in our internal processes and decision-making. As a regulated entity, JMMB fully complies with all applicable legal and regulatory obligations,” the bank said.
In its six-page defence filed in the Supreme Court in December 2024, JMMB acknowledged that it suspended transactions on Clemmings’ account, disclosing that between November 2023 and February 2024, multiple large deposits were made which exceeded monthly deposits declared for the account.
The bank said as a consequence, transactions on the account were suspended, pending investigations into source of funds further to Clemmings’ duties and obligations as a regulated business under the Proceeds of Crime Act, the Terrorism Prevention Act and the United Nations Security Council Resolutions Implementation Act.
JMMB said Clemmings was subsequently instructed to open a business account but noted that upon review of financial statements provided by him. it was noted that the income in the statements did not support incoming wires.
The bank said a few weeks later, Clemmings produced another set of financial statements which, it said, differed from earlier statements provided.
JMMB said it was not satisfied with the information produced by Clemmings to confirm the source of funds, noting that the information was not consistent.
It said it was not satisfied that the funds did not constitute criminal property and so it returned the incoming wire transfers to the remitting bank.
The bank challenged the US$35,000 figure, noting that nine wires amounting to US$33,519.78 were being sent to Clemmings’ account but returned to the remitting bank. It said it did not see a 10th transaction of roughly US$1,500 among its records, hence the discrepancy.
The bank denied Clemmings suffered inconvenience and financial strain as alleged, maintaining that its actions were in accordance with its regulatory responsibilities.
Further, it said Clemmings is not entitled to interest as claimed and any and all relief claimed.
The Bank of Jamaica, the country’s central bank, said it has written to JMMB Bank requesting an update on the status of its investigation into Clemmings’ complaint.