Summary of the Problem:
There are many daily problems that take place between banks and their clients, such problems need fast solutions taking into account that financial problems do not bear the adjournment in solution. When a problem takes place between the bank and the client, the normal banking procedure is as follows: the Bank’s department (Finance, Operation, Human Resources or Compliance) refers the problem to the Legal Department in order to obtain a quick legal solution to the problem from the legal manager, then, the Legal Department studies the problem in detail and issue a legal decision for solving the problem , usually the legal decision is one of two as follows: (1) there is an error on the bank’s side , the error must be corrected and the client’s problem must be solved with immediate effect, pay the amount to the client, or do so and so and provide the client with an apology letter (of course if the client is VIP one!!) or (2) there is an error on the client’s side, there is error on the bank’s side, all the client’s requests\claims are not legally accepted.
An example of a banking problem:
a limited liability company has a corporate account with the bank, this account is solely operated by a foreign partner\manger as he is the sole manager with unlimited powers on the company’s valid CR (Commercial registration), the local partner (not an operator on the corporate account and not manager on the company’s valid CR) came to the bank , requested withdrawal of a large amount from the company’s account , the bank accepted his request and allowed him to withdraw the large amount from the company’s account , the foreign partner\manager objected to that procedure and requested the bank to return the withdrawn amount to the company’s account but the bank’s legal department rejected his request , so what is the easiest and fastest solution available to the angry foreign partner\manager?
Summary of the Solution:
If the foreign partner\manager goes to civil court and file a civil case against the bank, that will be a lengthy and complicated procedure and it will be a waste of time, effort and money, therefore the proverb says: he who goes to court will win a cat and lose a cow!! So, what is the fastest and easiest solution to this problem? The fastest and easiest solution to this problem shall be as follows: the foreign partner\manager or his lawyer shall file a complaint to the central bank, it is very probable that the central bank will resolve the problem and issue an order to the bank and request the bank to return the full amount to the company’s account from the bank’s funds and thereafter the bank can chase the local partner and try to restore the money from him amicably or through court because in accordance with the central bank’s regulations in any country any person who is not manager with unlimited powers on the company’s valid CR shall be prohibited from operating the company’s account or withdrawing any money therefrom . When the bank executed the central bank’s order and return the large amount to the company’s account, then the foreign partner\manger will get the fair solution and he can smile, laugh and say: justice in the air is better than any medicine or healthcare!!
Faisal Ali Addabi\Advocate
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