Saturday, 16 December 2017, 27 Rabiulawal 1439H Solat Time:
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Current Account Terms and Conditions


Rules Governing The Operations Of Current Account

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1.0 Wadi’ah Contract

1.1 The customer(s) agrees that the money deposited into the Current Account is based on Shariah contract of Wadi’ah Yad Dhamanah (guaranteed custody) and give consent for the Bank to deal with the whole or any part of any monies standing to the credit of the customer(s) accounts in the manner that the Bank shall deem fit. The Bank guarantees payment of the whole of such or any part thereof standing to the credit of the customer(s) accounts upon demand subject to no order to the contrary by any regulator, authority or court.

2.0 Authorisation

2.1 The customer(s) hereby authorise and request the Bank to honour all cheques, drafts, orders to pay, bills of exchange and promissory notes expressed to be drawn, signed, accepted, endorsed or made out on the customer(s) behalf drawn upon or addressed to or made payable by the Bank as long as there is/are available credit in the account(s).

2.2 The customer(s) agrees to maintain a sufficient balance in the account at all times before issuing any cheque payments or any fund transfer.

3.0 Deposit

3.1 Every cash deposit must be enclosed with the deposit form that is being supplied by the Bank. The duplicate copy is only valid if it has been printed by the Bank’s computer or it has been endorsed by an officer of the Bank. Every transaction that is stated in the deposit form must be checked before leaving the Bank’s premise.

3.2 For cheque deposit, it must follow the guideline which has been defined by the Bank from time to time. Customer must write the name of the recipient, account number and telephone number clearly behind the cheque and any amendments on the cheque is not allowed. The Bank reserves the right not to honour any cheque as and when it deems fit. Every transaction which has been stated in the deposit form must be checked by the customer before leaving the Bank’s premise.

3.3 Cheques and other instruments deposited which have been rejected for cheque clearing will be returned without any payment being made and if the customer does not claim the physical cheque, it will be destroyed based on the last date of the validity of the cheque.

4.0 Bank’s Liability

4.1 The customer(s) shall indemnify the Bank as a collecting banker from any loss which the Bank may incur by reason of its guaranteeing any endorsement,discharge on any cheque, bill, note, draft, dividend warrant or other instrument presented by the customer(s) for collection and every such guarantee given by the Bank shall be considered to have been given at the customer’s(s’) expressed request in every case.

4.2 The customer(s) agrees that the Bank shall not be responsible and shall fully indemnify the Bank and hold the Bank harmless for/against all losses, costs and expenses which may be incurred by the customer(s) or by the Bank in connection with any, or all of the banking accounts on the execution by the Bank of any instruction or if any of the customer(s) banking account or any part thereof is reduced or frozen by any government or official authority.

4.3 The customer(s) further agrees that when the Bank accepts or incurs liability at the customer(s) request, for any fund or securities and other valuables deposited with the Bank (whether deposited by way of security, safe custody or for any other specific purpose) belonging to the customer(s) it maybe taken as security by the Bank and the Bank shall have the right to hold it as a security to the Bank and the Bank shall have the right to retain such funds or securities or any part thereof and even dishonour the customer(s) cheque until the liability is settled.

5.0 Cheques and Cheque Books

5.1 Only cheques supplied by the Bank/Bank representative containing the customer’s(s’) number may be used to draw on the account.

5.2 Application for cheque books should be made on the printed application forms or by written request duly signed by the customer(s) or any other media allowed by the Bank.

5.3 The customer(s) shall collect the cheque book in person or alternatively, the customer(s) shall authorise the Bank to hand the cheque book to her/his representative as specified in the cheque book application form.

5.4 The customer(s) agrees that the cheque book issued to them which remains uncollected or cannot be delivered within 1 month from the date of issuance shall be destroyed by the Bank and any charges debited during the issuance of the said cheque book shall not be refunded to the customer(s) to defray the cost of issuing the cheque book. The Bank may impose charge on cheque disposal.

5.5 The Bank reserves the right to dishonour any cheques whereby (in the opinion of the Bank) the drawer’s signature on the cheque differs from the specimen signature supplied to the Bank.

5.6 The Bank shall have the right to dishonour cheques with alteration/technical error or did not comply with the guidelines of writing a cheque which have been determined by the bank from time to time.

5.7 All instructions to stop payment of cheques must be in writing fully identifying the cheque and will be effective only upon receipt of such instruction by the bank where the customer’s(s’) account is maintained. The instructions should include the cheque serial number, the date, the payee’s name and amount. The Bank shall not, however, be responsible for any delay or omission by customer in executing such instructions.

5.8 The Bank is protected and shall not be liable for wrong interpretation of cheque if the customer(s) uses languages other than Bahasa Malaysia or English.

6.0 Temporary Excess on Current Account

6.1 The Bank may at its absolute discretion and in the manner as determined solely by the Bank grant from time to time sums in Excess of the available credit (“Excess”) to the customer(s). The Excess shall be treated as a loan granted by the Bank under the Qardh contract.

6.2 The customer(s) agrees to pay with its equivalent for all outstanding Excess amount that the Bank grant to who shall benefit from the available credit given and pay the Excess.

6.3 Each time Excess is granted, the customer(s) shall be liable to pay a fee at the time and in the manner as determined by the Bank from time to time.

6.4 The Excess shall be temporary in nature and the customer(s) shall pay the Excess amount granted immediately to the Bank . If fail to do so, the customer(s) shall pay the ta’widh (compensation) on the outstanding Excess amount as described under clause 8.1 below.

7.0 Fees and Charges

7.1 The customer(s) hereby agree that the Bank shall be entitled to charge a fee for any of its services provided to the customer(s) at the rates imposed by the Bank. The Bank shall have the right to debit the customer(s) account for the said charges.

7.2 The customer(s) hereby agree to pay to the Bank the Bank’s fees and charges for depository services, banking facilities and other services, as may be imposed and/or revised and announced by the Bank from time to time as it deems fit with sufficient notice given to customer(s). The customer(s) shall pay the fees and charges as and when it is charged or required by the Bank.

7.3 The fees/charges are inclusive of 6% GST where applicable.      

8.0 Ta’widh (compensation)

8.1 The customer(s) hereby agree that the Bank shall have the right to charge Ta’widh (compensation) based on the Islamic Inter Bank Money Market rate (IIMM) if the customer(s) fail to settle the outstanding excess amount within three (3) days of the excess granted to the customer(s).

9.0 Statement of Account Balance

9.1 The customer(s) agrees that the statement of the balances on the customer’s(s’) accounts will only be issued once a month. If however, there is no transaction during the month, the statement will not be issued to the customer(s).

9.2 Only the statement of account balance issued by the Bank shall be deemed to be valid if not disputed at the time as stipulated by the Bank. Bank is protected and shall not be liable for any unauthorised alteration on the statement of account balance issued by the Bank, nor for its misuse, acceptance or unauthorized use.

9.3 The customer(s) agrees to examine the statements referred to in clauses 9.1 and 9.2 above and notify the Bank within seven (7) days upon receipt of the account statement by the customer of any error, irregularity, discrepancy, claim or unauthorised debit or credit item whether made, processed or paid as a result of forgery, fraud, lack of authority negligence or otherwise by any person whomsoever.

9.4 The customer(s) further agrees that if the customer(s) fail to advise the Bank in writing of the non-receipt of the statement from the Bank to notify the Bank of any error, discrepancy claim or unauthorised debit or credit items in the statement within fourteen (14) days from the date of the same, the Bank’s accounts or records shall be conclusive evidence of the transaction entries and balances in such accounts and the customer(s) shall be deemed to have conclusively accepted all matters contained in the statement as true and accurate in all respects. Any amendments thereafter of the statement shall be at the sole discretion of the Bank.

10.0 Closure and Freeze of Account

10.1 The Bank reserves the right to close/freeze any of the customer’s banking account for any reason whatsoever without giving any notice of such intention and the Bank therefore shall not be bound to disclose any reason.

10.2 The customer(s) shall at all times conduct the Designated Current Account in accordance with the terms and conditions relating to the operation of accounts including the provisions of Bank Negara Malaysia’s Dishonoured Cheques Information System (“DCHEQS”).

10.3 Notwithstanding other provisions to the contrary, the Bank shall have the right to close/freeze the customer’s account at any time in the event that the customer’s name appear in the DCHEQS, Bank Negara Malaysia wanted list, UN related list, order from relevant Enforcement Agencies , or should there be any court order including bankruptcy notice or winding up petition is served upon the Bank or any instruction issued by any authority is received by the Bank regardless of whether the account has been satisfactorily conducted or not.

10.4 Upon closure of the customer’s(s’) account, either by the customer(s), by the Bank or by operation of the law, all unused cheque leaves remain the property of the Bank and the customer(s) shall immediately return them to the Bank.

10.5 The Bank has the right to close the customer’s(s’) account if the Excess amount remain unpaid for more than a period determined by the Bank from time to time. 10.6 In the event the Bank suspects that the customer’s account is being used for or implicated in fraud or suspected fraud activities, the Bank shall issue a written notice to the customer to explain/ confirm the transactions. If the Customer fails to provide such explanation satisfactory to the Bank, the Bank reserves the right to close, freeze or otherwise deals with the customer’s account as deems fit by the Bank.

11.0 Accounts Records and Information

11.1 The customer(s) shall notify the Bank in writing as soon as possible of any change of relevant records such as change of authorised signature(s) signatory(ies),change of partners (for partnership accounts), change of Memorandum and Articles of Association (for company accounts), and change of all address and contact telephone number. All communications including the service of any legal process, sent by post to or left at the customer(s) address last registered with the Bank shall be deemed to have been duly delivered to and received by the customer(s).

12.0 Partnership Account

12.1 In the case of a partnership account, the customers agree that all partners shall be jointly and severally responsible for all liabilities of the customers’ accounts.

12.2 The instructions given for the operation of the customers’ partnership accounts shall remain in force until revoked in writing notwithstanding any change in the constitution or the name of the firm or in the membership of the firm by death, bankruptcy, and retirement or otherwise or admission of new partner(s).

13.0 Joint Account

13.1 Cheques on this account will be signed by any either one of the customers and in the event of death of any of the customers, the credit balance of the account will be administered by the survivor(s) as a trustee to the deceased beneficiary and shall also be subject to the Bank’s prevailing policy.

13.2 The customers shall jointly and severally responsible for all liabilities of the customers’ accounts.

14.0 Dormant Accounts and Unclaimed Money

14.1 The customer(s)shall make a transaction to the customer’s account at least once a year. The Bank shall consider the customer’s account as dormant if the account is not active for a period of 1 year from the last transaction date.

14.2 If the customer’s account is inactive for 7 years, balance monies in the customer’s account shall be deemed to be as Unclaimed Monies under the Unclaimed Monies Act 1965 and shall be transferred to the Unclaimed Monies Registrar . 14.3 An annual service charge of RM10 shall be imposed and deducted from the customer’s account so long as it remains dormant. The service charge will be charged until the remaining balances are sent to the Unclaimed Monies Registrar.

14.4 For current account with balance less than RM5, the credit balance in the customer’s account shalll be deducted as service charge and the customer’s account thereafter shall be closed.

15.0 Additional Rules and Conditions

15.1 In addition to and not in derogation of any of the rules set out herein the conditions printed on the inside cover of the chequebook issued to the customer(s) shall be considered part of these rules.

15.2 In addition and without prejudice to these rules, where applicable, the terms and conditions herein shall be governed by and subject to the rules, regulations and guidelines from time to time issued by Bank Negara Malaysia and other relevant authorities. The customers hereby agree that the services currently and/ or at any time offered by the Bank to them shall be dependant upon and subject to the said rules, regulations and guidelines.

15.3 The Bank reserves the right to add, delete, amend or alter any or all of these rules at any time. Such additions, deletions, amendments or alterations shall be effective upon display of such notices in the Bank’s premise or advertised or by any other modes of communication which the Bank may deem fit.

16.0 Standing Instructions

16.1 Any payment or transfer of funds to be made or effected pursuant any standing instructions given to the Bank shall be subjected to such adequate balances being maintained in the account from which the funds are to be paid or transferred as may be prescribed by the Bank from time to time.

17.0 Miscellaneous

17.1 Under the Anti Money Laundering and Anti-Terrorism Financing Act 2001,the Bank reserves the right to take necessary action against the customer’s (s’) account should the customer’s (s’) account is suspected to be howsoever involved in the Money Laundering and Financing of Terrorism.

17.2 These Rules and Regulations have been approved by Bank Islam Shariah Review Committee.

1.0 Wadi’ah Contract

1.1 The customer(s) agrees that the money deposited into the Current Account is based on Shariah contract of Wadi’ah Yad Dhamanah (guaranteed custody) and give consent for the Bank to deal with the whole or any part of any monies standing to the credit of the customer(s) accounts in the manner that the Bank shall deem fit. The Bank guarantees payment of the whole of such or any part thereof standing to the credit of the customer(s) accounts upon demand subject to no order to the contrary by any regulator, authority or court.

2.0 Authorisation

2.1 The customer(s) hereby authorise and request the Bank to honour all cheques, drafts, orders to pay, bills of exchange and promissory notes expressed to be drawn, signed, accepted, endorsed or made out on the customer(s) behalf drawn upon or addressed to or made payable by the Bank as long as there is/are available credit in the account(s).

2.2 The customer(s) agrees to maintain a sufficient balance in the account at all times before issuing any cheque payments or any fund transfer.

3.0 Deposit

3.1 Every cash deposit must be enclosed with the deposit form that is being supplied by the Bank. The duplicate copy is only valid if it has been printed by the Bank’s computer or it has been endorsed by an officer of the Bank. Every transaction that is stated in the deposit form must be checked before leaving the Bank’s premise.

3.2 For cheque deposit, it must follow the guideline which has been defined by the Bank from time to time. Customer must write the name of the recipient, account number and telephone number clearly behind the cheque and any amendments on the cheque is not allowed. The Bank reserves the right not to honour any cheque as and when it deems fit. Every transaction which has been stated in the deposit form must be checked by the customer before leaving the Bank’s premise.

3.3 Cheques and other instruments deposited which have been rejected for cheque clearing will be returned without any payment being made and if the customer does not claim the physical cheque, it will be destroyed based on the last date of the validity of the cheque.

4.0 Bank’s Liability

4.1 The customer(s) shall indemnify the Bank as a collecting banker from any loss which the Bank may incur by reason of its guaranteeing any endorsement,discharge on any cheque, bill, note, draft, dividend warrant or other instrument presented by the customer(s) for collection and every such guarantee given by the Bank shall be considered to have been given at the customer’s(s’) expressed request in every case.

4.2 The customer(s) agrees that the Bank shall not be responsible and shall fully indemnify the Bank and hold the Bank harmless for/against all losses, costs and expenses which may be incurred by the customer(s) or by the Bank in connection with any, or all of the banking accounts on the execution by the Bank of any instruction or if any of the customer(s) banking account or any part thereof is reduced or frozen by any government or official authority.

4.3 The customer(s) further agrees that when the Bank accepts or incurs liability at the customer(s) request, for any fund or securities and other valuables deposited with the Bank (whether deposited by way of security, safe custody or for any other specific purpose) belonging to the customer(s) it maybe taken as security by the Bank and the Bank shall have the right to hold it as a security to the Bank and the Bank shall have the right to retain such funds or securities or any part thereof and even dishonour the customer(s) cheque until the liability is settled.

5.0 Cheques and Cheque Books

5.1 Only cheques supplied by the Bank/Bank representative containing the customer’s(s’) number may be used to draw on the account.

5.2 Application for cheque books should be made on the printed application forms or by written request duly signed by the customer(s) or any other media allowed by the Bank.

5.3 The customer(s) shall collect the cheque book in person or alternatively, the customer(s) shall authorise the Bank to hand the cheque book to her/his representative as specified in the cheque book application form.

5.4 The customer(s) agrees that the cheque book issued to them which remains uncollected or cannot be delivered within 1 month from the date of issuance shall be destroyed by the Bank and any charges debited during the issuance of the said cheque book shall not be refunded to the customer(s) to defray the cost of issuing the cheque book. The Bank may impose charge on cheque disposal.

5.5 The Bank reserves the right to dishonour any cheques whereby (in the opinion of the Bank) the drawer’s signature on the cheque differs from the specimen signature supplied to the Bank.

5.6 The Bank shall have the right to dishonour cheques with alteration/technical error or did not comply with the guidelines of writing a cheque which have been determined by the bank from time to time.

5.7 All instructions to stop payment of cheques must be in writing fully identifying the cheque and will be effective only upon receipt of such instruction by the bank where the customer’s(s’) account is maintained. The instructions should include the cheque serial number, the date, the payee’s name and amount. The Bank shall not, however, be responsible for any delay or omission by customer in executing such instructions.

5.8 The Bank is protected and shall not be liable for wrong interpretation of cheque if the customer(s) uses languages other than Bahasa Malaysia or English.

6.0 Temporary Excess on Current Account

6.1 The Bank may at its absolute discretion and in the manner as determined solely by the Bank grant from time to time sums in Excess of the available credit (“Excess”) to the customer(s). The Excess shall be treated as a loan granted by the Bank under the Qardh contract.

6.2 The customer(s) agrees to pay with its equivalent for all outstanding Excess amount that the Bank grant to who shall benefit from the available credit given and pay the Excess.

6.3 Each time Excess is granted, the customer(s) shall be liable to pay a fee at the time and in the manner as determined by the Bank from time to time.

6.4 The Excess shall be temporary in nature and the customer(s) shall pay the Excess amount granted immediately to the Bank . If fail to do so, the customer(s) shall pay the ta’widh (compensation) on the outstanding Excess amount as described under clause 8.1 below.

7.0 Fees and Charges

7.1 The customer(s) hereby agree that the Bank shall be entitled to charge a fee for any of its services provided to the customer(s) at the rates imposed by the Bank. The Bank shall have the right to debit the customer(s) account for the said charges.

7.2 The customer(s) hereby agree to pay to the Bank the Bank’s fees and charges for depository services, banking facilities and other services, as may be imposed and/or revised and announced by the Bank from time to time as it deems fit with sufficient notice given to customer(s). The customer(s) shall pay the fees and charges as and when it is charged or required by the Bank.

8.0 Ta’widh (compensation)

8.1 The customer(s) hereby agree that the Bank shall have the right to charge Ta’widh (compensation) based on the Islamic Inter Bank Money Market rate (IIMM) if the customer(s) fail to settle the outstanding excess amount within three (3) days of the excess granted to the customer(s).

9.0 Statement of Account Balance

9.1 The customer(s) agrees that the statement of the balances on the customer’s(s’) accounts will only be issued once a month. If however, there is no transaction during the month, the statement will not be issued to the customer(s).

9.2 Only the statement of account balance issued by the Bank shall be deemed to be valid if not disputed at the time as stipulated by the Bank. Bank is protected and shall not be liable for any unauthorised alteration on the statement of account balance issued by the Bank, nor for its misuse, acceptance or unauthorized use.

9.3 The customer(s) agrees to examine the statements referred to in clauses 9.1 and 9.2 above and notify the Bank within seven (7) days upon receipt of the account statement by the customer of any error, irregularity, discrepancy, claim or unauthorised debit or credit item whether made, processed or paid as a result of forgery, fraud, lack of authority negligence or otherwise by any person whomsoever.

9.4 The customer(s) further agrees that if the customer(s) fail to advise the Bank in writing of the non-receipt of the statement from the Bank to notify the Bank of any error, discrepancy claim or unauthorised debit or credit items in the statement within fourteen (14) days from the date of the same, the Bank’s accounts or records shall be conclusive evidence of the transaction entries and balances in such accounts and the customer(s) shall be deemed to have conclusively accepted all matters contained in the statement as true and accurate in all respects. Any amendments thereafter of the statement shall be at the sole discretion of the Bank.

10.0 Closure and Freeze of Account

10.1 The Bank reserves the right to close/freeze any of the customer’s banking account for any reason whatsoever without giving any notice of such intention and the Bank therefore shall not be bound to disclose any reason.

10.2 The customer(s) shall at all times conduct the Designated Current Account in accordance with the terms and conditions relating to the operation of accounts including the provisions of Bank Negara Malaysia’s Dishonoured Cheques Information System (“DCHEQS”).

10.3 Notwithstanding other provisions to the contrary, the Bank shall have the right to close/freeze the customer’s account at any time in the event that the customer’s name appear in the DCHEQS, Bank Negara Malaysia wanted list, UN related list, order from relevant Enforcement Agencies , or should there be any court order including bankruptcy notice or winding up petition is served upon the Bank or any instruction issued by any authority is received by the Bank regardless of whether the account has been satisfactorily conducted or not.

10.4 Upon closure of the customer’s(s’) account, either by the customer(s), by the Bank or by operation of the law, all unused cheque leaves remain the property of the Bank and the customer(s) shall immediately return them to the Bank.

10.5 The Bank has the right to close the customer’s(s’) account if the Excess amount remain unpaid for more than a period determined by the Bank from time to time. 10.6 In the event the Bank suspects that the customer’s account is being used for or implicated in fraud or suspected fraud activities, the Bank shall issue a written notice to the customer to explain/ confirm the transactions. If the Customer fails to provide such explanation satisfactory to the Bank, the Bank reserves the right to close, freeze or otherwise deals with the customer’s account as deems fit by the Bank.

11.0 Accounts Records and Information

11.1 The customer(s) shall notify the Bank in writing as soon as possible of any change of relevant records such as change of authorised signature(s) signatory(ies),change of partners (for partnership accounts), change of Memorandum and Articles of Association (for company accounts), and change of all address and contact telephone number. All communications including the service of any legal process, sent by post to or left at the customer(s) address last registered with the Bank shall be deemed to have been duly delivered to and received by the customer(s).

12.0 Partnership Account

12.1 In the case of a partnership account, the customers agree that all partners shall be jointly and severally responsible for all liabilities of the customers’ accounts.

12.2 The instructions given for the operation of the customers’ partnership accounts shall remain in force until revoked in writing notwithstanding any change in the constitution or the name of the firm or in the membership of the firm by death, bankruptcy, and retirement or otherwise or admission of new partner(s).

13.0 Joint Account

13.1 Cheques on this account will be signed by any either one of the customers and in the event of death of any of the customers, the credit balance of the account will be administered by the survivor(s) as a trustee to the deceased beneficiary and shall also be subject to the Bank’s prevailing policy.

13.2 The customers shall jointly and severally responsible for all liabilities of the customers’ accounts.

14.0 Dormant Accounts and Unclaimed Money

14.1 The customer(s)shall make a transaction to the customer’s account at least once a year. The Bank shall consider the customer’s account as dormant if the account is not active for a period of 1 year from the last transaction date.

14.2 If the customer’s account is inactive for 7 years, balance monies in the customer’s account shall be deemed to be as Unclaimed Monies under the Unclaimed Monies Act 1965 and shall be transferred to the Unclaimed Monies Registrar . 14.3 An annual service charge of RM10 shall be imposed and deducted from the customer’s account so long as it remains dormant. The service charge will be charged until the remaining balances are sent to the Unclaimed Monies Registrar.

14.4 For current account with balance less than RM10, the credit balance in the customer’s account shalll be deducted as service charge and the customer’s account thereafter shall be closed.

15.0 Additional Rules and Conditions

15.1 In addition to and not in derogation of any of the rules set out herein the conditions printed on the inside cover of the chequebook issued to the customer(s) shall be considered part of these rules.

15.2 In addition and without prejudice to these rules, where applicable, the terms and conditions herein shall be governed by and subject to the rules, regulations and guidelines from time to time issued by Bank Negara Malaysia and other relevant authorities. The customers hereby agree that the services currently and/ or at any time offered by the Bank to them shall be dependant upon and subject to the said rules, regulations and guidelines.

15.3 The Bank reserves the right to add, delete, amend or alter any or all of these rules at any time. Such additions, deletions, amendments or alterations shall be effective upon display of such notices in the Bank’s premise or advertised or by any other modes of communication which the Bank may deem fit.

16.0 Standing Instructions

16.1 Any payment or transfer of funds to be made or effected pursuant any standing instructions given to the Bank shall be subjected to such adequate balances being maintained in the account from which the funds are to be paid or transferred as may be prescribed by the Bank from time to time.

17.0 Miscellaneous

17.1 Under the Anti Money Laundering and Anti-Terrorism Financing Act 2001,the Bank reserves the right to take necessary action against the customer’s (s’) account should the customer’s (s’) account is suspected to be howsoever involved in the Money Laundering and Financing of Terrorism.

17.2 These Rules and Regulations have been approved by Bank Islam Shariah Review Committee.

Eligible for protection by PIDM

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