I REFER to the letters by Mr Tan Yip Meng, 'Banks have duty to protect customers', and Mr Michael Hwang, 'Forged cheques: Is the ABS saying that Singapore banks do not insure themselves against liabilities?' (Oct12).

We agree with Mr Tan that banks have a duty of care towards their customers in the process of collecting and honouring cheques, and also to the public in being vigilant in detecting the movement of funds derived from or used for illegitimate purposes.

Our member banks are committed to upholding these duties.

Not withstanding this, customers are still expected to play their part in areas which are within their means to prevent cheque forgery - for example, proper safekeeping of their cheque books and reporting to the banks as soon as possible upon discovery of any possibility that the security of their cheques may have been compromised.

Fraud prevention, like the prevention of any other criminal act, must be a collective effort.

Banks and customers must exercise their respective duties.

As to Mr Hwang's point on Bankers Blanket Bond Policy, we are of the view that whether banks have insurance coverage against cheque forgery is not germane to the issue of the respective parties' duties and liabilities.

Ong-Ang Ai Boon (Mrs)
Director
Association of Banks in Singapore

This article was first published in The Straits Times.