A Bankers Trust order is a court order requiring a bank, usually an innocent third party, to disclose a customer’s account documents so that a victim of fraud can trace where its money went. The name comes from the English case Bankers Trust Co v Shapira (1980). In Singapore, a company that has lost funds to a dishonest employee, director or fraudster may apply for this kind of relief, but it is not the only route and it has limits. In Alliance Divine Impex Pte Ltd v Arulappan Tony (DBS Bank Ltd, non-party) [2024] SGHC 227, the High Court ordered disclosure of a former manager’s bank statements under the “bankers’ books” provisions in section 175 of the Evidence Act 1893, and questioned whether Bankers Trust relief is available where the claim is personal rather than proprietary. Choosing the right legal basis matters.
This guide explains, for directors and business owners, when bank disclosure is possible, what the court looks for, and how to prepare.
When does a company need bank disclosure?
- A finance employee diverted payments to an account they control, as in many employee criminal breach of trust cases.
- A supplier’s “bank details” were changed by a fraudster and invoices were paid to the wrong account.
- A director moved company funds to a related party without approval.
- A customer paid into a third party’s account and the company needs to show who received the money.
In each case the company may know where the money left its own account but not where it went next. Banks owe their customers a duty of confidentiality and statutory banking secrecy under section 47 of the Banking Act 1970, so they will not disclose without consent, a lawful exception, or a court order.
The legal routes in Singapore
| Route | What it does | Key points |
|---|---|---|
| Section 175 Evidence Act 1893 (“bankers’ books”) | Lets a party to legal proceedings inspect and copy entries in a bank’s books, by court order | Used in the 2024 Alliance Divine case; the documents must be “bankers’ books” and the court applies a structured framework before ordering inspection |
| Bankers Trust relief | Disclosure by a bank to help trace specific money the claimant says belongs to it | Traditionally needs a proprietary claim, strong evidence of fraud and a real prospect that disclosure will locate or preserve assets |
| Norwich Pharmacal relief | Disclosure from an innocent party “mixed up” in wrongdoing, usually to identify the wrongdoer | See our guide to Norwich Pharmacal orders |
| Pre-action and non-party production under the Rules of Court 2021 | Orders for documents before or during proceedings | See pre-action discovery and production of documents under Order 11 |
| Police report and criminal investigation | Police can obtain bank records and may freeze accounts in suitable cases | Runs alongside civil recovery; does not itself return money to the company |
What the 2024 decision said
In [2024] SGHC 227, a food company believed its former senior sales manager had diverted money. It obtained a pre-action discovery order, which the former manager ignored, and then asked for his DBS bank statements for the period of his employment. DBS agreed to the terms but did not formally consent. The court granted the order under section 175 of the Evidence Act, finding the statements were bankers’ books, the pre-action application was a legal proceeding, and the request was relevant, made in good faith and limited to a defined period. The court also discussed Bankers Trust relief and noted that it traditionally requires at least a reasonable prima facie case of wrongdoing supporting a proprietary claim, and a real prospect that the information will lead to the location or preservation of assets. It doubted whether claims framed in conversion and unjust enrichment, as pleaded there, were proprietary, and left open whether Order 11 rule 11 of the Rules of Court 2021 can compel a bank to produce customer records given the Banking Act’s exceptions.
The practical lesson for companies: the legal basis, the way the claim is framed, and the precise documents requested will decide whether the application succeeds.
What the court will look for
- A credible case of wrongdoing, supported by documents: payment records, emails, audit findings, police report.
- The nature of the claim. For Bankers Trust relief, a claim that the money in the account is the company’s property (for example, money held on trust) rather than only a claim for compensation.
- Specificity. Named account, named bank, a defined date range and defined categories of documents. Fishing requests fail.
- Necessity. Whether the company tried other routes first, such as asking the account holder or seeking pre-action discovery.
- Balance and fairness. The bank’s confidentiality duty and the customer’s privacy are weighed against the company’s need. The applicant usually pays the bank’s costs of compliance.
- Urgency. If money may be moved quickly, the application may need to be made without notice, sometimes together with a freezing injunction. That brings a duty of full and frank disclosure to the court.
Step-by-step for a company that has lost money
- Act within days. Notify your own bank immediately and ask it to contact the receiving bank. Make a police report.
- Preserve evidence. Secure accounting records, payment approvals, emails and device logs. Suspend system access of any suspected staff.
- Board decision. The board should minute its decision to investigate and to instruct lawyers, and consider whether any director is conflicted.
- Instruct a law firm. The lawyers will decide the right combination of applications, for example disclosure plus a freezing order, and prepare affidavits.
- File and serve. The application is filed in the General Division of the High Court with supporting affidavits; the bank is served with any order.
- Use the documents properly. Documents obtained under a court order may only be used for the purposes the order allows.
- Follow through. Use the information to bring the recovery claim, add defendants, or seek further tracing orders against recipients.
Documents to prepare
| Document | Purpose |
|---|---|
| Company bank statements and payment vouchers | Show the payments out and the receiving account details |
| Internal investigation notes or audit findings | Explain how the loss was discovered |
| Employment contract, authority limits, board approvals | Show the payments were unauthorised |
| Police report | Shows the matter has been reported |
| Correspondence with the suspected recipient | Shows other routes were tried |
| Board resolution authorising the claim | Confirms the company’s authority to sue |
Timeline and costs
| Stage | Typical timing | Cost drivers |
|---|---|---|
| Internal fact-finding and police report | Days | Management time, forensic accountants if needed |
| Preparing the application | One to three weeks, faster if urgent | Legal fees for affidavits and submissions |
| Hearing | Depends on urgency and court scheduling | Court fees, counsel’s attendance |
| Bank compliance | Set by the order | Applicant usually reimburses the bank’s costs |
Costs vary with complexity; ask the law firm for an estimate before instructing it. Throughout, keep the accounting treatment of the loss and any recovery documented for the auditors and IRAS.
Frequently asked questions
Can the bank just tell us where the money went?
Generally no, because of banking secrecy. It needs consent from its customer, a statutory exception or a court order.
Will the account holder be told?
Not always. Where there is a risk the money will be moved, the court may allow the application without notice and restrict the bank from tipping off the customer for a period.
Is a Bankers Trust order the same as a freezing order?
No. A disclosure order gets information; a freezing order stops assets being dealt with. They are often sought together.
Can a company in liquidation use these routes?
Yes. Liquidators also have their own statutory powers to obtain information. See remedies when directors mishandle a company for related options.
Need help tracing your company’s money?
If your company, or you as a director or shareholder, is dealing with misappropriated funds and needs bank records to trace them, contact the Raffles Corporate Services team at [email protected] or on WhatsApp at +65 8501 7133 or +65 9018 0072. We will help you understand the documents and deadlines and reconstruct the accounting trail. Where your matter needs a lawyer, we will refer you to a firm on our panel of Singapore law firms that regularly handles fraud, asset tracing and urgent court applications. Raffles Corporate Services is a corporate services provider, not a law firm, and this article is general information, not legal advice. For advice specific to your situation, please consult a qualified Singapore Advocate and Solicitor.
Willie Tan, Raffles Corporate Services