Banks asked not to close incomplete KYC accounts

December 30, 2014

Bangladesh Bank has asked scheduled banks and non-bank financial institutions not to close incomplete KYC (know your client) accounts which were opened before April 30, 2002 as some banks has recently taken move to seal the accounts violating the banking rules and regulations.
The BB issued a circular to managing directors and chief executive officers of all banks and NBFIs on Sunday saying that the clients were allowed to deposit with their incomplete KYC accounts but they were not able to withdraw fund from the accounts in line with the central bank directives.
The BB issued a circular to the banks and NBFIs on July
24, 2005 asking them to complete the KYC of the accounts by March 31, 2010.
The incomplete KYC accounts after March, 2010 are treated as dormant accounts and the account holders are allowed to deposit only with the accounts, it said.
The banks and NBFIs are able to convert the dormant accounts into the regular shape if the account holders applied the branches of the banks and NBFIs to fill up the KYC accurately.
The latest BB circular said some banks and NBFIs had recently closed the dormant accounts to avoid the KYC procedures violating the central bank directives. f

-With New Age input

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