The EFG Bank Case: A Word on Conclusive Evidence Clauses

30 Jun 2011

In the judgment of Jiang Ou v EFG Bank AG [2011] SGHC 149, the court discussed the effect of conclusive evidence clauses.

Such clauses, commonly found in banking documentation, typically place the onus on customers to check their bank statements and notify the bank if there are any discrepancies within a stipulated time, failing which they are precluded from challenging the correctness of those statements. The court observed, in obiter, that such clauses cannot exonerate a bank from liability arising from the fraud of its own employees engaging in unauthorised trades.

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