Business

Allow ‘reasonable options’ for creditors to return excess funds due to glitch, CIMB told

BNM governor says bank must ensure customers’ ability to access accounts during rectification not affected

Updated 4 years ago · Published on 11 Feb 2022 2:18PM

Allow ‘reasonable options’ for creditors to return excess funds due to glitch, CIMB told
The recent processing error in the CIMB banking system had resulted in a number of accounts being frozen, and the bank has been reaching out to the affected customers to ensure a fair and managed resolution. – Bernama pic, February 11, 2022

by Anne Edwards

KUALA LUMPUR – Bank Negara Malaysia (BNM) wants CIMB Group Holdings Bhd to provide “reasonable options” for customers to return excess funds deposited into their accounts.

The excess funds were made by the bank following a processing error in January.

“CIMB is also required not to affect customers’ ability to access their accounts in the process of rectifying the issue,” BNM governor Tan Sri Nor Shamsiah Mohd Yunus told a press conference when announcing the country’s results for the fourth quarter of 2021.

According to The Edge, CIMB had reported a processing error in its banking system late last month where it supposedly credited funds into customers’ accounts due to erroneous duplicate credits. It is unclear how many customers or how much funds were involved.

It was also reported that affected customers said their accounts had been frozen at the time.

“They received messages about funds in their accounts being deducted, some to the tune of tens of thousands of ringgit.

“CIMB has explained to the affected customers that it has recently detected incidents of excess funds being wrongly credited into their accounts.

“As such, we have required CIMB to ensure that efforts to recover these funds do not affect customers’ ability to access their accounts and to allow reasonable options for customers to return excess funds,” Nor Shamsiah said.

“We are looking into specific circumstances around this incident. We supervise and take action if the findings reveal any breach of legal or regulatory requirements including adhering to acceptable risk management standards that we expect all financial institutions to observe.” – The Vibes, February 11, 2022

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