Executive Summary
- Finastra International Ltd claims CRDB Bank PLC breached a 2017 software licence agreement by permitting indirect access to its core banking software, FusionBanking Essence (FBE), via Wakalas using a single access point (TMS).
- The claim centers on alleged unauthorized "multiplexing" of user access, exceeding the 2,000 Concurrent User licence limit, with estimated losses of US$23 million.
- A proposed late amendment to include claims related to a new system, New Agency Banking System (NABS), potentially adding US$4.9 million in losses, was refused due to procedural unfairness and risk of trial delay.
- The case involves complex contractual interpretation and technical assessment of concurrent user access and software interface usage.
Sanctions Highlights
- — No sanctions implications identified in the case.
Emerging Risks
- Potential for increased litigation risk in software licensing where multiplexing or indirect access is involved.
- Risk of trial delays and procedural complications from late amendments in complex IT-related disputes.
- Challenges in quantifying damages linked to evolving technology platforms (e.g., transition from TMS to NABS).
- Possible reputational risk for banks using third-party agents and new digital banking platforms without clear licensing compliance.
Geopolitical Impact
- The case involves UK legal jurisdiction (England and Wales High Court) and a Tanzanian bank (CRDB), highlighting cross-border commercial litigation.
- Reflects UK’s role as a key venue for resolving international technology licensing disputes.
- US dollar-denominated claims underscore the global financial system’s reliance on USD for cross-border commercial contracts.
- No direct sanctions but the case touches on regulatory and operational issues relevant to UK and US financial technology sectors.
Economic Intelligence
- Estimated financial loss claimed by Finastra is approximately US$23 million, with an additional US$4.9 million linked to the new system (NABS).
- The dispute underscores the economic significance of software licensing compliance in banking IT infrastructure.
- Wakalas, numbering over 34,000, represent a significant channel for banking services in Tanzania, indicating the economic scale of agent banking models.
- The case highlights the economic impact of IT system transitions on contractual obligations and potential liabilities.
Strategic Recommendations
- For financial institutions: Ensure clear contractual terms and compliance regarding software user access, especially when deploying agent banking or multiplexing technologies.
- For software providers: Monitor and enforce licence terms proactively, particularly when client technology platforms evolve.
- For legal teams: Avoid late-stage amendments in complex IT disputes to prevent trial delays and prejudice.
- For regulators and policymakers: Consider guidance on agent banking and software licensing to mitigate emerging risks in digital financial services.
- For investors and stakeholders: Monitor litigation risks related to IT licensing in emerging markets as part of operational due diligence.
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**Source Notes:**
Sanctions Intelligence Digest, [https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/509.html](https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/509.html)