COURT ORDERS RHB BANK TO DISCLOSE MDD GUIDELINES TO MARITIME NETWORK WITHIN 45 DAYS

PUTRAJAYA, Dec 11 (Bernama)  -- The Court of Appeal here today ordered RHB Bank Berhad to produce the Minimum Due Diligence (MDD) guidelines for the financial institution governing foreign-exchange transactions for a shipping company within 45 days, effective today.

A three-member bench comprising Court of Appeal judges Datuk N. P. Ravinthran and Datuk Faizah Jamaludin, together with High Court Judge Datuk Ahmad Shahrir Mohd Salleh, issued the directive after allowing Maritime Network Sdn Bhd’s pre-trial discovery appeal.

Confirming the decision, the company’s counsel P. Taneswaran, along with James Joshua Paulraj and Kavitharini Ramesh, said the panel also dismissed a stay application made by the bank’s counsel, Gan Khong Aik, along with Lee Sze Chin andTong Min Jie.

“Today, the panel heard our appeal and allowed it. The court then directed the bank to produce the document within that 45-day period,” he said in a text message.

On July 2, Kuala Lumpur High Court Judge Leong Wai Hong had dismissed Maritime Network’s application on the grounds that the requested document was unnecessary, thus, he ordered the shipping company to pay RM10,000 in costs to the bank. The company then filed its appeal the next day.

A pre-trial discovery application is a legal process that allows one party in a civil case to obtain documents or information from the opposing party before a trial commences.

Maritime Network filed an originating summons on March 3 this year, seeking a court order to compel the bank to disclose the financial institution’s internal guidelines and due diligence procedures governing foreign-exchange transactions.

The action, initiated by the company’s director, Datuk Seri R. Jeyenderan, named RHB Bank Berhad as the sole defendant.

Established in 2002, Maritime Network commenced proceedings after discovering that several international fund transfers into its multi-currency USD account had been returned without prior notice or adequate justification.

According to the affidavit, these transfers, though originating from previously unfamiliar senders, made explicit reference to valid invoices issued by the company.

Despite Maritime Network’s request that the bank withhold any reversal pending a thorough review, the funds were unilaterally returned.

Meanwhile, the bank claimed that it has complied with the required financial standard, namely, MDD. The company is therefore demanding a sight of the MDD guidelines used by the bank through pre-trial discovery to determine if it has breached its duty of care.

--BERNAMA