KUALA LUMPUR – Banks are obliged to reimburse funds lost to fraudulent transactions that were not due to the fault of the affected customers, Bank Negara Malaysia (BNM) has indicated.
Responding to the case of a customer relations manager allegedly siphoning millions in clients’ savings, the central bank said it may also take additional supervisory and enforcement actions on the financial institution if warranted.
“Banks will make good on monies that are lost due to fraudulent transactions not attributed to depositors,” it said in a statement to The Vibes.
“In this regard, BNM will ensure that this incident is addressed promptly and fairly.”
On Monday, Bukit Aman Commercial Crimes Investigation Department director Datuk Mohd Kamarudin Md Din had said seven police reports have been lodged over criminal breach of trust (CBT) involving at least RM4 million allegedly embezzled by a bank’s customer relations manager.
The announcement comes following The Vibes’ report involving a lawyer who lost RM1 million in life savings from an international financial institution.
Kamarudin confirmed that a suspect has been arrested on September 21 and charged over allegations of buying seven gold bars with funds from the fixed deposit account of a customer.
He said the manager pleaded not guilty and was released on RM30,000 bail after being charged in court for CBT under Section 408 of the Penal Code on September 27.
“Six other police reports are still under investigation,” Kamarudin said.
“Based on investigations, police believe many more victims have suffered losses due to the suspect’s actions but have yet to lodge police reports.”
Kamarudin also advised other victims to come forward and lodge reports at the nearest police station for further investigations.
On Sunday, The Vibes had reported on the case of the lawyer, who, in a police report, claimed RM1 million in his fixed deposit accounts were transferred to an unknown individual’s account without his knowledge or consent.
Met by The Vibes recently, the lawyer, who is in his 30s, said he visited the bank’s Bangsar branch with his mother on April 7 to open the fixed deposit accounts.
The RM1 million in funds was entrusted to a relationship manager from the branch who would handle all banking matters related to him and his mother.
The bank had also subsequently issued two fixed deposit account certificates amounting to RM500,000 each.
Less than six months later, on October 1, the lawyer returned to the bank to check on the balance of both accounts.
It was discovered that the funds were transferred out from both accounts on June 11 and 25 amounting to RM500,000 per transaction, while much of the country was facing movement restrictions.
The case has raised fears over the security of large funds handled by priority banking services for high-net-worth individuals.
Despite the concerns, BNM in its response today assured the public that all licensed banks are required to put in place proper controls and safeguards to ensure safe and sound banking operations.
“This includes the establishment of appropriate levels of checks and balances and verification procedures for all transactions, including withdrawals,” it said.
It said the public can contact BNMTELELINK for information, enquiries or redress at 1-300-88-5465 from Monday to Friday (9am to 5pm).
Alternatively, BNM said the public can also submit queries or complaints via an online form.
It said BNMLINK will open for face-to-face consultations on an appointment basis starting November 1.
Furthermore, the public can also visit BNMLINK’s office at the Asian Institute of Chartered Bankers (AICB) building, Level 4, 10 Jalan Dato Onn here, BNM said. – The Vibes, October 28, 2021
