Home Business MCB customers have lost millions of dollars due to the bank’s negligence

MCB customers have lost millions of dollars due to the bank’s negligence

by Adeel Ikram

MCB customers have lost millions of dollars due to the Bank’s negligence

KARACHI | Karachi Muslim Commercial Bank Limited was renowned as a Bank for Life; unfortunately, due to incompetence, the Bank’s customers have found themselves without accessing funds accumulated over many years of saving.

MCB customers have lost millions of dollars due to the bank's negligence

President Arif Alvi ordered several banks, including MCB, to refund Rs4.1 million to customers affected by fraud from unorganized banking systems.

Customers harmed by bank fraud have turned to law enforcement authorities after scammers conducted fraudulent transactions against their accounts, causing immense pain in a highly turbulent economic period for society.

MCB noted it had many longtime customers loyal to its banks; however, due to flaws in the system, they now seek alternative banking institutions due to confusion caused by those flaws.

Victims of fraud have expressed dismay about Electronic Funds Transfer (EFT), which approves transfers without their prior permission and without providing full disclosure of the accounts involved.

Authorities noted that funds had been lost because Muslim Commercial Bank (MCB) Bank and other institutions failed to implement EFT without the approval of account holders, thus depriving customers of receiving funds that belonged to them.

Not for the first time has an employee of MCB put its customers into an unwanted situation: in August 2011, another innocent customer lost Rs18lac using illegal means.

Federal Investigation Agency initiated its probe following a complaint by Khalid Pervaiz Qureshi of being unhappy about operating his savings account with number 10055251 at MCB Farooqabad branch. He informed the director of FIA.

After leaving government service, he placed the funds he earned into an account at a bank and claimed a fraudulent transfer occurred with duplicate SIMs being distributed and funds being misappropriated and fraudulently transferred by transfer services. Later, he contacted both General and Regional Managers from said Bank in an attempt to present his case, but with no success.

State Bank recently assessed penalties against MCB Bank Limited and several other banks for flouting regulations regarding CDD/KYC compliance and general bank operations. MCB was fined Rs19.223 million with instruction to improve processes and controls identified as problematic areas.

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