Bank and Customer > derwition of Wuwver ¢ Customer, Se Cent Bik ans, Bank defined iwsussection (21(1) of Phe Céntrat Bank of Muingtin Act 9s, (tt 61), Picans 4 pLrsoh Whe Cone om benny businto TA peacon com itd an (nati! corporations seciehy jhatore iA, 8 Ona tre gua of person WH Malaysia, na perseh Germilted (0 Lérryy on busincic of benkiney UNLESS ¢ 4) Nas publicly Let company D) hadsvali Irv License resued by Ministry of Fineate Malayti a Bening Business 1) beceive dept = Heute dept ome nang Cunrentny OF Aepetil Accum D) Cheque Issuante /Cotlection ~ poy feillect cheguc drawn by oF pad th by Customer 7) raiding of Fmonte ~ Lending Morey, / leasing factoring, bilis ef eecherge , atceptonce er guaruntee of amy lnbiltuy A) duow by Masny = any OVI ato by Munising of Frnante betinition «f CUSTOMER Fa—> the significant 4 a persoh be a custome 1S bane owes @ percon a numberof egal obligation Which indudes duty OF confidentiality D> thus, bunt have Certain privileges Specifically stututoy bretection when tre Cellechon cheque th the botull of custoney BO rere’ no Shububry definition of Customer tn Mulaysiay, Stagepare 7 UE, He aefintin of customer rely 6m court cases for the judwial Juidene Ke Great Wester Reiluey v London and Couhty Bering Co. Lid © G persor must have Some formof Account with the lum fo be a Customer this defiaition isthe Same as Common Law that pesbeing 4a in Mora banking Syste Scanned with CamScannerde A Wong v Means Bast Lia sth the vluhun sip of (SUR Gf bunker Cte as fam He dae he bunk accepted te “ns actions comtuinect tn «leo trentnough the eccount uur nak opened until Buseet< afler Arat Aate PK p> Lidbate gC "Tedd (14i4) = bused sh tre case of Ledivoke & Ce ve Todd 14H, a penn is @ customer of bank Uber the application to open anaccount hus been accepledd, opened lenathot time the account 1S pen {6 hol ymportunk te > Limporter Compury Lid vs Westminter Bent Ltd 4 Bonk may be another bane’ ¢ usteney — WwTmporbcal Comgeny Lid vs Westmintter Book Ltd, it waswrged that te frm castmey dows nat refer to anather bank = rowerey » Athan Lj Suid thal IF mah LLegriny bunk regularly Send Om dots te a cieoring, Jeune for Clearing Aveformey 15 a customer of the lattew = Ly refer to Lord Justice Wich 6 6 Judge ih He Courtel Appece! 2-2) Format Gelatin CD Contrae tut in Mate © bused on te Legal binding ayrecmeyst bere 2 Pewtics # hen a castomey opinsan account witha bunk they entér into « Contact withdtie bank that oullines Aerms onal Conclitishs of the relationsirie + Aypicdluy includes provision cegurding types of acount availaite, Pees end charges, Woherest tates on loans | dd posits and rights 4 respuncibilitics Of bobh, Parties also tntludes provsions telated te Confidentiality sprivacy ¢ cate protection ©@ Special kelationship © Special relationship, bette unker ¢ astomer Fefers 40 lege & ethical duty at banker be act ih the. Jest itereste af their Custoney Wav based ontle prinine of trust 4 confidence unckits Created When Custeher entrust thet Gssch tra money a bunker For safene-tping anchinvestrent * He vank became the financial aAViSor or beoleey to custney @ Troster tnd Berefiviany eterionehito 8 GAnustets iS @pCHON oF entity Who holds lequl fife ko property Cor the benefit of anotey personoy entity Who Enon 66 beneficiary fe tnthe case of bunk acting os feustee, #he bank holds veycl YTHle te pe-propetprassets on behalf of the bewefiviany © the Velitionshie between a trusteeand beneficiary Ws one of thushand confidence Scanned with CamScannerGQ) ever a Crier eesinasps a weno custine! deposits maneyy Im Ine accourk tre bunk wecanes a debtor and the Custiner becomes @ creditor * Te bane wee the wutomer the amount deposited endl the custewer Con demon pursment Fram bunk any tite, ®D Pincioat and Agent ketationship @ yeler tO When binkey welt as onagenbonbehall of bie Lustonerswhe ite tlt puncipa! + Hee He princi ancl egent Pelutibnchye aug nie onc nunblr OF Leurting uenteett FY example Mohan cattower aunanig a banker el a4 Heir AYE IM C4eCuhg, Heansectish oF merce Hair assels 2-3) Rignd & Duly 2F Barber its of Buntey CO) > bight te commission of Service charge a bank has right 16 charge thir tener @ ruin ameund of Fees upon terclering, services dodiem eitler by Commiiith or service arge © fhe commission is permitted For over lotwrking services qcncralig Fixed or sutt.neck buy ASsowction of Banter Q > igh o mieest 8 the bank's right 1 charge IMe~est Is thefiundorental aspect of its businece made © ante earns profit by receiving deposit Pram customer, then lendingout These Fisch ala higher iicrest vale to bomrewers Ste differen buween deinterest eemedt Onloans ancltte iitiechmict on hepsite 1S Ennan as wet interest margn, hick S aley mecruse Of & bunk’ prafitability Ons Right to set-o FF © refer 40 legal vight of @ bank fo use Rand Homone Uewwuint to ctEret oF pray Amey debt OA by cccount halder in unothey uccount © Waceans a customer oweel te bunk Moher on oe account, the unk Con use the funds fram anottey account sumed ly Same pustoney 40 pony OFF debt © Abit Vight icustatty outlined ih the dorms anc COnditiOS OF u baak’s accounk agreement nck Wymtally used for defwulded (oan or credit Card ebebh a inclrtain sidwations, a buat may hot Kable to fe set OFF an account to vecouer debt oweek by a Customer Ahis magbe cine to leyal ov ragulahry tes trictitns ar tecaure the custoher he rOleChions Th pla Protections im place. that prevent He bank From taking tefunds. © oe Following account cannot be setett » 4. @ private det awount and trust Credit account 2. a@ deceased credit account dececuby § desit balance Gnd vice VOSA 3, Customes’s credit Acuaunt anda contingent WabilAy om @ AS counted bil 4. a Soli Cotient account) ors direck account anda visiter’s overdrawn curren account Scanned with CamScanner@> hight fo Fepeynent of loon ebuscd on the ageeret trek Shipulaled Confrach chasten bar af te petit the ant is seal bo Ln, when itis dat For customer © tepeny e havetle Nglt of repognent af the sud Stn financing a COvtaPr unking Lraniacheh Ane eunk hos Qh) penelite bre Castehey fe ® > Right to Ulihae fle depositer momen a when acusttmer Aepotits honey int a bunk account de tanliines righ 4s utdlize ate payrent thas merey order to earn pratite Air te ont © tai Is Funclonentat arprel a6 benbing ondct often weberrad as © raghh fo rer ote” mers or envesthe © Phe bank can WIC dle deposited funde be mata tour toctmer cus money in other Finential attrumenté such oc bert sSecuritiey or otrese © Hight to exec! due core by the Uarlomer in drawing chegyes othe Nght 1s Important firthe bunks s wheneastaner Write d cheaue, Hey mmorery fiom their account $4 the Fecipicnt honed intre Cheque © to ensure that, dhis process Is Camricd out €FEiciently, bunts expect their Lastomeys by exerise due Care when willing Uneques (D> kegut to ven © the gids beh os legal right granted 49 bunk s that allowas trem 8 febain posession of & customer's properly ef OF Gunds until a debt ov Obi yubon 15 Satis biel dineching, te bante 14 Praye rpccitic Grmaand oF Fim banking, lem Fer to tle yight of bank 44 retain pesstesrish oF ung SeCaritics vroperty oF documents cepasitcl oy tue customer with she bunk “# Security For @ loan . or credit faality DuTy of BANKERS OD — Buty to follow instruction made by castomers 2 The duty of a banker 40 fallow jhstructishs made by tustomey fs important ih the banlcer Custoney grcltianship , and the ounkey Shiulel always act inaccordance with $e Customer's instructions fy the best at the hy shite also ft fting Hey teal anc Ahical obtigutitns © Whie a custoney gives Intatructions 42 bunker, banker has & duchy fy Fo tow there ihttructieh @ thists based on Prtheble of agency, vbere bunker ucts asan agents forthe customer * te bemier ecpectedto act in the best interest of cartoner ant Fo camry out dir wichuctions accurately © Inthe case of Chutrman, Sarawak Housing Bevctoper’s Association V. Malayan Buneing Be He {ailure oF ble Wank to striitly folfow the instruction of customer leacle to the forgery of Several cheques by the Lustomey’t employer) which un be averded if tle bank ules Lariver inquiry ais totie drawings of fue cheques Scanned with CamScannerPuy $> honey cheques drawn by lastoney © i ie important tm banding $9119 und nels to Facilitate transachyen Letwten incliidaal’ und businesses © When weastamer wile w Untane, Hey Ure gyving he oHel an irctmuctian tapas Certain amount OF minus fo a specie recipient 2 Hee unk mast Hen Gulfll this chigallth , provided thal toe creanes <6 propery autnoined ; has sultiuent funds, ond vat subject Ue any legal fectvictions © Hawever, loonie alve have duty to exercise teasonuble Core orel chy Chequer, This elude + W471 ben processing 9) Curtomer hac suffiiend fende in his account or toithin He UmitzoF the aged overdiett b) Mo legt bare te posprent Such us ndt Ste passnent C) There ave diaurin tle ppriper Forty , toumple,n* of the cheque CD Day to ereise rcave Gnd skill when dealing with customer Weretune on be Luce means that bank must ack In the lest interests of their customers and tata easenawie stept tO ensue Phat teil custiners avenal exposed te unde eatks ov lasses * bmuwaing te providing acumake nat Heel) Mmforinalith about banking products & reewees, ehsusing that Customers underctundl the +86 ageagiatted with these prduct serices and prose approprrale advice and cpusdeince CD Vuty of Secrecy © bunteer’s duty of secrciy ih Malaysia is statutory as His clearly provided under the FSA 2013 @ bunle owes duty of secvecy tu its custoners at alltime, including duty te keep information Concerning He Custonere affair confidential 2 Thit duty also Contractual Ih mute andl is bobeimblied by « lounkey ancl Customer relabonstifp fe Under Section 133.00) of FSA stipulates, ha perstn whohus ACRE te any clocusant én Information relating 19 te affuirs er occount of any Wustimey of Cinanwal inctitutifn jntding He Financal institution or Gay purcsn who is dF has been « difcct¥, officer eragert of Finungat insti titn, Shall disclose to anotier person any information rclatingts affars oF account el Cusidmers @ Vustyok as teyard to garnishee order * Gumishee order is @ court order indracting a garhiihee Ca bunt) that finds aniequnen'®< for te bank Scanned with CamScanner24) RIGHT duty of Customer, ') Right 10 supplied with statement ov pass bisk and tt mentein high degree 4 ascuracy ts their bookkeeping under ths right, Cistomen have ght bs HE CLIVE pensdic Statements or Possraaks hat accurately reflect S them eccount otances ,Mersection bnstony tres Crergecly interest cared and abier relevted detots wiaalig monty = tree stalements or pacibodks cheeld be provded onregute oF quarterly jand should be acutrate and Comprt¢ = castomerc have Hght to muinkark high degree of accuracy 7 trait tan Book ketping, which means thal Hhey Shaul keep accurate Wecarde of trex Enancial tare chit and reconcile them with Hatements *Y brishook? prewded Su tre pam OF Grane al Inspituion +2) Right bo bevcpaid balance Standiny 40 te crcait of Abe Customer ‘s accom ~ FbiG tight ensures that Customers hove ability to withdraw their funds at erytre ond that day funds are secure , epost mancy inte en anreacrount with a tert ot = When u Customer they becdime a creditor of the bank oF financial insti tubon means thab the bunt Of Financial inchitution ves the customer arrount ALposited, and He cUstsmer hatte right ty withdraw that moray ary tine in Meevent that hank or Financial Mmctitutioh inecomes Msolvernt OF 1S Umeble be Mect he obligations, Customer lave vight fo be repaid Ht balance standing to Hae creat of money of thery account ~ typicalty Aine through theuw ot Acpecit insurance or other Government ached program that protect Customer elepotits 5) Right to receive intucst oh their deposit account = Customert have right fo receive interest oh their Aeposit account, mciude Atpesits anck other similar typos Obacount that designed to earninter cst on tne nr, unch : ' CNP ically Paid by lank or financial institubioh ascarcwart § the case Of customer's und jeand the rele af Interest may vary depends on type of acount, amount deposited, ana prevailing market conclitions. = however cucomey dont have right recive inlewst ob theiv watent account Purchases , saving! , ined Gnd Prey Gre nok designed to Carhinterect on the Acposited Funets — isha cument account muy be whject fe fees and charges for certain $ranciction Sov erample a RTM, usithdrawals, Cece wtiting anc over drafes + Scanned with CamScanner.-) = (hisuihen 4 customer Our multiple debt bs creditey Civ jrttonie abene on tinencial Yabilution and matey a pagment dhol & 'e45 ths the dota omar owed jy the crearitsy has hac the right 10 apply the payment foony OF the debt evel ~ however, the customer hag right to request thet the poument Ihe opel tin ip VC rey Suchas fO the Aebt Utth tne wight! intitead tole on the alte dee? ~ tre right Hodapp roptiak Pogment 1k erential lov torcurtr thal Lactaberr ate Gedy MEA fog enalited Fer ynalime payment (eeethan titel inguns Ota, and pot p — by Exe sing Hes Nght customer con en sure HHOly Plagmenks OF appied im a neu Tred iimosh Wenetiual te them anc helps reduce dmeit debd burden DUTIES OF COSTMER © duty te eceresse reasonable Core dtawihg chegncs = (morder ta fulfilt dhis duty customers should take core wher rowing, thal cheques, Cesuring spaces arc filled in CoFtectly and there arene bienk ‘peices al Phare outel toe Filiea #” thy ~ custome t have tobe vigilant for any Sighs of Fraund OF Unuatpow2edl achintu em tree wet rer and reports suspicious transuctiohs to the bank > with doing these dufies, CUSteMmer Con help the fo lmcanbain the integrity ef Bertin system, prevent trawl) ancl pratect their oun fiRancial heres ts > inthe case of London Joint Stock Bank y Macmilan, 4, Arthar Clay) 4s Alondmat Case 1H Ehytish Law thal establechccd abe principic that customers huveetubyteteeraic Measanable core in Areuing thew Checues 40 prevent fraud ond protect the bant from ability ® Naty te notify, the bank prompily f aware of any FOryenes ov urasthovi2ea transactions oh accounkS = ArtSes from the prinaple of geod fuith orc fair dealing that overns the velationcne betueen customers and vanes = acastomer haveto mform their pane immecbately of ary false alteration af g cheque © Prompt ratification of foryeres and unauthorized Fransaction iS important becarse't Can hansb fhe petentiar tosses thal can vesult from such actinities. = also enatre trovunk Fo Luke appropiate achen to prevent further Leauc and Protect the tmercsts of its Customers mM ine se of Greenwood v Markn Bank CiaS3) established thu} customers have a duty bo Informa jreir bunk Imintdiatety of any MUlse alteration of @ Cheque Scanned with CamScanner) Duty fe maintain proper recard of all Chegues Iscued, = arises Grom the primiple of goed fulh ond Soir dealings that governs the Felalionship between Customers and bunk + * Wmuintan proper te cor Aso cheque s sued thctuding keeping Urtcard of the Cheque number Aha date Phe Cncy ve Was Issued tne name of the puyer ard tne Amount of Se chant = Fhe FetorA Leeping ty Mimportund because + 1. Fired, tt allows Customers to keep rack of thei finances and encune that tnty dorob issae Wore creques trun they have fundé availanie bo cover A+ Second, Ik provides a vecobd of all Hansaction that con be Used 49 recenuit bank Statemench ond Acted Gry err6ic Or ditclepancits - Finally, proper recard kecpingeanhelpts prevent Froud oy Allowing customers to detect any unuathorited OF Fraudulent Cheques 4) mutyte ensure tee oc sullicient Lands tm their account 40 cover Issued Oneques = Customers (mast enrureinal they hare a icur undorstonding of the balance im their accourt and any ponding transactions thot muy aftectit ting Che(yue Aating Ints accetunt ans Cobstanding, = alloy they mast exercise Caution when bills orexbences that Maye deducted from their account inthe feu 16 customer Issues cheque without a subfiuenl funds they many be Liable for any Fees tr Charges that vesult trom dishehon of cheque, ®Sweil as ary Aumoges that pazer Mery Suffer = Im cxtveme (2565, @ Lastomer may alto face legal action or Criminal Changes for Istuiong a cheque tuitheut Suftivent fara 5) Duty to ontyuse cheques Forms supplied by tne bank for fssuing cheque = ihc vmportan’ fr bork customer use oniy tHe cheque Forms Provided ny He ban or Issuing cheapues | Wibecause each bark hus its oh unique cheque Format and security fealurcr designed oe prevent fraud anc protect the Interests af both Customer anct lank - byucing 4 aiferent ant’s cheque Form, may result in the cheque being Wejected Ov dishonorat vy tre bun = Ws bccause the vecetving bank may not be ailele to vertty The aubmenaty of a chequer arimuy pot be’ Willing 40 accel it as awiti Valid Brn oF pay ment Scanned with CamScanner