Banks must ‘make good’ on customers’ funds lost to fraud: BNM

[superadmin]

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.

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