Malaysia

Halal cheque fiasco may simply boil down to wrong use of terms: Bank Muamalat, assemblyman

Banks only concerned with purpose of instrument, source of money, says head of banking operations

Updated 4 years ago · Published on 27 Dec 2021 9:43PM

Halal cheque fiasco may simply boil down to wrong use of terms: Bank Muamalat, assemblyman
Bank Muamalat head of banking operations Muhamad Radzuan Ab Rahman says it may have been possible that the wrong terms were used to explain why the cheque did not comply with regulations. – Bernama pic, December 27, 2021

by Arjun Mohanakrishnan

KUALA LUMPUR – An issue that saw Bank Muamalat come under fire for rejecting a cheque over not being “halal” may all boil down to the wrong use of terminology.

During a press conference today, the bank’s head of banking operations Muhamad Radzuan Ab Rahman clarified that the financial institution does not have any policy that allows them to distinguish cheques as halal or non-halal.

Instead, the cheque initially bounced given technical issues concerning the names printed on the financial instrument and the purpose of the transaction.

However, when the staff members tried explaining the reason behind the rejection, it may have been possible that the wrong terms were used to explain why it did not comply with regulations.

“My conclusion is that this is merely a misunderstanding.

“Banks are only concerned with the purpose of the cheque and the source of the money.

“So when explaining this, the interpretation may have resulted in the term halal or non-halal being used whether from the bank or the person making the transfer.

“We were not there, so I can’t say exactly how it all went,” Radzuan said.

Similarly, Lobak assemblyman Chew Seh Yong, who was present during the press conference, shared a similar explanation.

Initially, Chew said the complainant informed him that the cheque was held by Bank Muamalat for a significant time.

He explained to the press that the customer attempted to donate money to an association for the purposes of beautifying a Chinese cemetery.

“When they attempted to bank the cash, the cheque was held for a significant time.

“During the back and forth between the complainant and the bank staff, they said the issue of halal and non-halal was brought up.

“I thought the complainant was joking and I scolded him because I have never heard of such things happening before,” Chew said.

When a reporter queried further as to who exactly used the term, Chew said he was not sure if the complainant was the one who brought it up or the bank.

Nevertheless, Chew reminded the press that Bank Muamalat will conduct an internal investigation into the matter. – The Vibes, December 27, 2021

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