30 Nov 2021
KOPERASI SAHABAT AMANAH IKHTIAR BERHAD RHB INVESTMENT BANK BERHAD
- Citation
- W-02(NCvC)(W)-2084-10/2018 (Mahkamah Rayuan)
- Court
- NCvC
- Case number
- W-02(NCvC)(W)-2084-10/2018 (Mahkamah Rayuan)
An investment bank that receives a substantial third-party deposit owes a duty of care to ascertain the depositor's identity and mandate before transferring funds; D1 breached that duty by transferring RM10 million to D3 on the basis of an unsigned bank-in slip and oral instruction without verifying authority, causing foreseeable loss; the bank is vicariously liable for its employees and must account for the sums, less dividends received.