Anwar Ibrahim: Banks in M’sia Must Compensate Scam Victims if Found to be Negligent

During the Prime Minister’s Question Time in the Dewan Rakyat today (December 3), Prime Minister Anwar Ibrahim said banks should pay back scam victims if it’s found that their negligence led to the scam.

He mentioned how he’s all for the system in the United Kingdom, where banks have to compensate in such cases, and thinks the same should happen in Malaysia.

“Banks would need to compensate”

The Prime Minister said this issue falls under the law outlined in the Criminal Procedure Code (CPC), Act 593.

Nurul Amin Hamid (PN-Padang Terap) asked Anwar if banks could be held responsible if their negligence caused money to be stolen from users’ accounts. Anwar responded,

“If it’s confirmed the bank was negligent, they’ll have to pay up. For example, under Section 413 of the CPC, RM138,407 belonging to scam victims has already been returned, so some people have managed to get their money back.”

He added that if it’s found the bank didn’t follow the regulations properly, they would have to compensate the victims.

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“The same practice in the UK applies here in Malaysia”

Initially, he was addressing an original question from Suhaizan Kaiat (BN-Pulai), who asked the Prime Minister about the causes behind the increase in financial scams and what steps are being taken to prevent them.

Anwar explained that, in principle, the same practice applies here in Malaysia.

He also mentioned that the government is working on it through a Treasury Secretary’s Review (KSP), aiming to set rules that make banks responsible for any mistakes or negligence on their part.

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