Should a bank be required to cover losses arising from fraudulent transactions perpetrated against its customer? The 2019 decision of the UK’s Supreme Court in the Singularis v Daiwa litigation sheds light on the responsibility financial firms accept if they process illicit payments that harm corporate clients, even when the payment requests originated from within those clients. Key to understanding the bank’s duty of care owed to its customer is the standard set by the ordinary, prudent banker.
