Muslim Commercial Bank (MCB) Limited, a well-known commercial bank touting itself as the ‘Bank For Life’, is under scrutiny due to its alleged negligence that has resulted in customers losing their hard-earned money.
President Dr. Arif Alvi has directed MCB, along with other banks, to collectively refund Rs4.1 million to affected customers who fell victim to fraud as a result of a disorderly banking system.
Customers, grappling with the effects of a severe economic downturn, turned to authorities after scammers conducted unauthorized transactions from their accounts, leaving them in financial distress.
MCB, which boasts a significant customer base, has seen trust shaken as a flaw in its system has triggered anxiety among clients, prompting some to consider switching to alternative banks.
Those affected by the fraud have voiced their concerns about the Electronic Funds Transfer (EFT) mechanism, which allowed fund transfers without obtaining their consent.
Officials have indicated that the loss of funds occurred because MCB and other banks failed to properly implement EFT procedures without the account holders’ authorization, resulting in a situation where Muslim Commercial Bank (MCB) Bank has been accused of mismanagement, ultimately depriving individuals of their money.
Regrettably, this is not the first instance of MCB customers finding themselves in an unfortunate situation. In a prior incident, an employee of the same bank allegedly swindled an innocent customer out of Rs18 lakh.
The Federal Investigation Agency (FIA) has initiated an inquiry into the matter following a complaint filed by an aggrieved customer named Khalid Pervaiz Qureshi. He informed the FIA Director that he held a savings account (number 10055251) with MCB’s Farooqabad branch. After retiring from a government position, he deposited his savings in the bank. Qureshi claimed that a duplicate SIM card was issued in his name, leading to a fraudulent fund transfer. Despite approaching both the Regional Manager and General Manager of the bank, he received no resolution.
Last year, the State Bank imposed penalties on MCB and several other banks for violating regulatory instructions pertaining to Customer Due Diligence (CDD)/Know Your Customer (KYC) protocols and general banking operations. MCB Bank Limited was fined Rs19.223 million and advised to fortify its controls and processes in the identified areas.
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