National Australia Bank on Notice

Banks have a special duty of care when it comes to Trust Accounts operated by the bank since their are two owners of the funds in these accounts – the Trustee and the Beneficiaries.

On 22 October 2012 a letter was sent to the Proper Office of the National Australia Bank placing the the bank on notice that parties who may not be properly authorised by the Trust Deed of a Government Regulated Superannuation Fund were misapplying funds from one or more Trust Accounts operated by the bank.

The National Australia Bank is now required to make inquiries that an honest and reasonable banker would make to ensure the bona fides of the party claiming to be authorised to be the Trustee of these accounts.

The National Australia Bank should not release any moneys from these Trust Accounts until the bank has received a reply from the purported Trustee that would be acceptable to an honest and reasonable banker.