In recent news, Malaysian banks have allegedly been among the top financiers of “forest-risk” companies in Indonesia, including those being investigated for the forest fires that afflicted the country this year. This report came from an international group of environmental NGOs which estimated that Malaysian banks had channelled US$2.35 billion (RM9.77 billion) since 2015 up to August this year to 17 companies implicated in the recent fires. We take a look at how grants and funds work, the checks and balances system in place and where are the loopholes in these processes.