Bar Council introduces new rule to prevent misuse of clients’ funds
The Malaysian Bar Council has mandated that legal firms with multiple partners must use two signatories for cheques and implement multi-factor authentication for online transactions. This rule aims to curb financial misconduct and rising insurance claims.
Why it matters
This regulatory change seeks to improve financial transparency and security within the legal profession to protect client funds.
Two partners in a legal firm will be required to sign cheques and handle multi-factor authentication for online accounts.
PETALING JAYA: The Bar Council has introduced a new rule requiring two partners in a legal firm to act as signatories for cheques, and to manage the multi-factor authentication for online transactions involving clients' accounts.
The Bar said the rule, which will take effect next year, was introduced following concerns over “significant” high insurance payouts arising from misconduct and dishonesty in managing clients' accounts.
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