KUALA LUMPUR — Prime Minister Datuk Seri Anwar Ibrahim (Tambun-PH) has agreed in principle with foreign laws requiring banks to compensate financial fraud victims if such financial institutions are found to have neglected their duties.
Addressing the Dewan Rakyat today, Anwar, who is also the finance minister, referenced United Kingdom rules requiring banks to reimburse scam victims, saying that similar measures will be studied by authorities here.
“(According to the UK rules), it is only applicable if a bank’s negligence or its failure to monitor according to its procedures is established (in the instance of scam cases).
“In such situations, banks must pay compensation and I agree that this principle should be used here,” Anwar said, adding that a committee chaired by the secretary-general of treasury will look into the matter.
The government, he said, will analyse whether there is a need for stricter laws compelling banks to bear responsibility if they are found to have failed in their responsibilities to monitor and ensure adherence to existing rules.
Anwar said this in reply to a supplementary question from Nurul Amin Hamid (Padang Terap-PN) on Malaysia’s commitment to implement similar rules as the UK to hold banks more accountable in scam cases.
Under the UK’s new mandatory reimbursement rules, which came into force on October 7, the nation’s Payment Systems Regulator determined that banks there must refund fraud victims up to £85,000 within five days from the transaction in question.
The rules, which have been hailed for setting a global precedent, aim to protect victims of authorised push payment fraud, known as the most prolific financial scam in the UK with £459 million lost in 2023 itself.
Anwar said that current laws in Malaysia stipulate that if a bank’s negligence is established in scam cases, they will have to return funds lost to the victim, with RM178,407 returned thus far.
He also said that the issue of scammers is a complex matter that is faced by many other countries worldwide, noting that a special committee at the Asean level has been formed to increase collaboration and monitoring efforts between member states.
“It’s a serious issue as according to Asean records, scam crimes have caused US$64 billion in losses. In Malaysia, online crimes have seen RM1.225 billion in losses between January to October this year,” he added. – December 3, 2024