This article first appeared in The Edge Financial Daily on February 26, 2018

PETALING JAYA: Alliance Bank Malaysia Bhd has been quick to respond to news of a suit it has filed against AMMB Holdings Bhd (AmBank).

“With reference to the recent article in The Edge Malaysia [weekly], this issue arose from the actions of certain individuals. We have reached out to AmBank to resolve this matter,” Alliance Bank wrote in a statement to the media.

The issue refers to the legal suit that Alliance Bank has filed against AmBank, as reported in The Edge Malaysia weekly over the weekend. The suit alleges misappropriation of sensitive information from Alliance Bank by current AmBank employees. These individuals were said to be ex-employees of Alliance Bank who had moved over to AmBank in the past one year.

Alliance Bank’s statement seems to suggest a softening approach, one source says, perhaps, in a bid to reduce collateral damage.

It is rare for banks in Malaysia to sue each other.

At the centre of the controversy is AmBank managing director of business banking Christopher Yap, who was hired by the bank to lead the new division.

The Edge Malaysia weekly reported that Alliance Bank had identified an electronic paper trail that shows sensitive information making its way into Yap’s hands after his departure. Yap has reportedly been placed on administrative leave.

AmBank did not respond to the matter, but in a written reply that was carried in The Edge Malaysia weekly last week it said, “AmBank will not be engaging in speculation in relation to the particular pending legal proceedings.”

At this stage, it is still possible that both banks will be able to settle the suit relatively amicably, and more importantly, beyond the public eye. This may be desirable, since sources tell The Edge Financial Daily that AmBank may have legal grounds to escalate the matter and widen the scope of the legal battle.

Specifically, sources say the manner in which Alliance Bank surveilled its ex-employee, Yap, may be questionable.

For now, it is merely a civil suit that is expected to be heard in the coming weeks.