BRPD Circular No. 03: To compensate the customers in case of fraudulent transactions

BRPD Circular No. 03 Department of Banking Regulations and Policies Bangladesh Bank Head Office Dhaka. March 13, 2017 BRPD Circular No.-03 Date:---------------------- Falgun 29, 1423 Managing Director/Chief Executive All Scheduled Banks operating in Bangladesh Dear Sir, Regarding providing appropriate compensation to customers in case of fraud in customer accounts. It has recently been observed that money is being embezzled from customer accounts by forging checks, and fraudulent or deceptive incidents are occurring. Such incidents may occur with the collusion of some officials/employees of the bank. Furthermore, such incidents may occur through theft of check leaves or check books, check fraud, system errors, and misuse of IT systems. Generally, when a money fraud incident is detected, a case is filed in court by the competent authority. Since the resolution of the case is time-consuming, it is reasonable to obtain an indemnity bond (indemnity) from the customer and return the embezzled money to the customer if the bank's own investigation proves that the customer is not involved in any suspicion. 02. Now, it has been decided that in case of fraud or deception in customer accounts by forging checks, if the bank's own investigation proves that bank staff are involved, the bank must immediately fulfill the customer's related claim. If it is proven that the said money fraud/loss has occurred due to third-party interference/error other than the involvement of any bank staff/employee or customer, the concerned bank must arrange to compensate the customer subject to the approval of the relevant department. This instruction will take effect immediately. Yours faithfully, (Abu Farah Md. Naser) General Manager Phone: 9530252