Editorial Staff

Editorial Staff

CCJ orders bank to repay customer money transferred from its account without authorization

Yesterday, the Caribbean Court of Justice (CCJ) on Tuesday ordered the Belize-based Caye International Bank Limited to repay more than US$170,000 to the Panama-based Rosemore International Corporation. The decision comes on the heels of a dismissal of an appeal of the bank.

According to the judgment, Caye Bank breached “its care of duty to Rosemore, and that it ought to have contacted the company given the red flags that had been raised during the transaction”

Rosemore, a customer of the bank sued the financial institution to recover money that had been deducted from its account without its authorization or consent.

The dispute arose over the sum of US$175,000 which Caye Bank transferred on April 23, 2015, from Rosemore’s account into an account located in Canada.

“Caye Bank offered Rosemore , the use of its secure online banking portal to conduct online transactions and gave it two sets of unique credentials to access the online banking portal known only to Rosemore”, according to a report.

Sources say when the funds were transferred, Caye Bank believed that the transfer was on the instruction of Rosemore.

“The CCJ found that Caye Bank was put on inquiry as there were several red flags including the substantial amount requested to be transferred was suspicious given that the history of the account showed that there had been only one insubstantial withdrawal in the amount of US$1,915.76 in 2012,” according to Loop.

In addition, their report said the CCJ found that the request came from an address which was not the domain address on record for Rosemore; and there were observable differences between the signature on the wire transfer request form and the authorized signature.


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