ENTREPRENEUR Datuk Wira Cheryl Tan Bee Geok has filed a legal suit against RHB Bank Bhd and three of its officers for negligence and/or breach of duty of care in relation to the wrongful transfer of RM1,325,700 from a joint account.
In her statement of claim filed in the Kuala Lumpur High Court, Tan is claiming that RHB and its officers failed to adhere to the express mandate governing the RHB joint account, acted in disregard of established banking procedures, and facilitated an unauthorised transaction without her consent.
Tan said such breaches amount to a failure to exercise the requisite duty of care expected of a banking institution and its officers, thereby causing loss and damage to her.
As such, she is seeking damages of RM15 mil from RHB and its officers.
Both Tan and Datuk Seri Stanley Thai Kim Sim were joint holders of an account in RHB whereby it was mandated that any transactions must be approved jointly by both of them. For the record, Tan and Thai co-founded listed glovemaker Supermax Corp Bhd.
Tan said that in the bank statement obtained from RHB, she noticed there was a debit of RM1,325,700 from the joint account. She asked RHB to conduct an investigation and subsequently wrote to the bank that it was a fraudulent transaction that she did not authorise.
RHB subsequently wrote to her that the approval of the transaction was an “inadvertent error made by the bank” and had since credited the account with the money which was debited into a Hong Leong Bank account.
RHB’s defence
Tan said she has suffered reputational harm and emotional distress as a result of RHB’s breach and negligence – including anxiety and mental anguish – from the stress of discovering the unauthorised transaction and the subsequent need to contest it.
In its defence filed on April 30 this year, RHB said several verification measures were carried out before the transaction was processed.
The bank and its officers processed the transaction truthfully, honestly, reasonably, carefully, diligently, properly and/or in good faith after amongst others by:
- Conducting biometric verification with Thai and verifying his signature despite his physical presence;
- Noting that the transaction was a first-party transaction from the RHB joint account of Tan and Thai to their joint account with Hong Leong Bank Bhd;
- Verifying that the redemption statement request was signed by both Tan and Thai based on which Hong Long Bank issued the redemption statement to both of them;
- Observing that the amount and purpose of the transaction were consistent with the redemption statement;
- Obtaining assurance and confirmation from Thai that Tan was aware of the transaction; and
- Being informed by Thai that the transaction could not be delayed to avoid late charges being imposed on him and Tan.
At all material times, RHB noted that it has responded to the requests made by Tan or her solicitors for details of the transaction without undue delay.
Accordingly, the bank and its officers denied that Tan suffered any loss, harm or distress – whether financial, reputational or emotional as alleged by her.
It further denied any liability to Tan in respect of the alleged financial loss, reputational harm or emotional distress suffered by her as alleged or at all. – May 5, 2025
Main image credit: RHB Bank (Harian Metro)/Datuk Wira Cheryl Tan (Madam Chair)
