Nine individuals, three companies sue CIMB Bank for frozen accounts

KUALA LUMPUR: Nine individuals and three companies are suing CIMB Bank Berhad and CIMB Islamic Bank Berhad after their current and saving bank accounts were frozen last January on allegation that there were proceeds from illicit or suspicious activities.

All the plaintiffs filed the summons through Messrs Nazmi Zaini Chambers at the Kuala High Court here last Monday (Feb 28), and named CIMB Bank Berhad and CIMB Islamic Bank Berhad as the first and second defendant, respectively.

In the statement of claim, the plaintiffs stated that they knew their bank accounts were frozen by the defendants between Jan 26 and Jan 28 this year.

After realising that their accounts had been frozen, the plaintiffs claimed that contacted the defendants' branches for clarification between Jan 31 and Feb 4 this year, and was informed that the plaintiffs were suspected to be involved in illicit and suspicious transactions involving the accounts.

"The plaintiffs were also informed that the amount (money) frozen was part of the floating transaction pending clearance of the transaction to the bank accounts and the plaintiffs were also informed that the defendants' online banking was in the process of technical maintenance," they said.

The plaintiffs claimed that they were not involved nor had they conducted any illicit transactions that allowed the defendants to freeze or withhold their accounts.

"The act by the defendants in freezing or withholding the accounts without any reason stipulated under Clause 7 of the terms and conditions of the savings or current accounts is a breach of contract between the defendants and the plaintiffs.

"The action by the defendants had caused the plaintiffs to suffer and face difficulties when they were unable to use their accounts," they said.

The plaintiffs claimed that the defendants have the duty of care and responsibility to ensure that any action by the third party would not affect the rights and their position as depositors to the financial institution.

They also claimed that the defendants had neglected their duties by allowing negligence by a third party that provided money remittance services that affected their (plaintiffs) rights and position as the customers and depositors.

The plaintiffs are seeking, among others, a declaration that the defendants had breached the terms and conditions of the savings and current accounts by freezing them without a lawful reason.

Meanwhile, lawyer Nazmi Mohd Zaini, representing all the plaintiffs, when contacted by reporters, said the case management has been fixed on March 15 online before High Court deputy registrar S.Malarselvi.

Meanwhile, CIMB in a statement said the bank denies any allegations of breach levied against it and will defend its position on the matter.

"Notwithstanding this and as we have emphasised previously, the bank remains committed to ensuring a fair and managed resolution with the affected customers," said George Wong, assistant vice president, Group Corporate Communications CIMB Group Holdings Berhad.

-- BERNAMA