Bank, subsidiary to pay RM1.16mil credited to wrong company
High Court holds parties liable for error in online banking transfer resulting in loss for motor and spare parts dealer.
The Kuala Lumpur High Court recently ruled that a local bank and its subsidiary were responsible for a financial error that resulted in Yat Fatt Auto Supplies Sdn Bhd losing RM1.16 million. The error occurred when the bank's online banking system failed to identify mismatched account details, causing a RM1.23 million transfer to be sent to the wrong company, Banarsi Das Trade.
The funds were intended for Perodua Sales Sdn Bhd, but an error in entering the account number led to the transfer. Yat Fatt filed a lawsuit in 2024 to recover the lost funds, and the court ordered Alliance Bank Malaysia Bhd and its subsidiary, Alliance Islamic Bank, to pay the company the full amount, along with RM50,000 in legal costs.
The court acknowledged the company's mistake but emphasized that the bank had a duty to verify the entered information, such as the account number, before allowing the transaction.
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- Bank, subsidiary to pay RM1.16mil credited to wrong company freemalaysiatoday.com
