I keep hearing from friends and family regarding receiving letters from their banks about providing documents for particular accounts with threats that otherwise 'restrictions on withdrawals' will be imposed on the 'said accounts'!

It was last month that I received one myself for my RFCD (Resident Foreign Currency Account) requesting for 'Source of Income Supporting Documents'. 

I was a bit confused as I know that RFCD accounts are funded by deposits (Maximum of USD 5000 without declaration and more with declaration) everytime you come back from an overseas trip.  This is as per Central Bank regulation 'Information for Declaration' Chapter 6, Para 1A, APP.5. The question of 'source of income supporting documents' is not relevant for this kind of account. 

I called up my Relationship Manager and even he was not sure of what documents I was supposed to provide. He finally asked me to submit my NID (National ID) and my latest TIN Certificate, which I had already provided for all my accounts. It seemed like he just needed me to provide 'something'!

The purpose of my writing this article is that bank officials should first understand what are the regulatory requirements and what applies to what accounts. Some necessary documents from customers may apply to a particular kind of account and not all accounts. These kinds of letters create a lot of confusion and unnecessary visits to banks and more importantly a waste of time for both customers and bank officials.

Having been in the financial institution for many years it is easy for me to know/ understand and more importantly question the content of the letters. However, for most customers it can cause stress and confusion not comprehending what documents they are supposed to provide. 

It is understandable that the Central Bank will issue new circulars that we need to abide by fully, but it is equally important that the bank officials understand the content of the circulars and communicate the correct information to the customers! It is imperative that frontline and other relevant staff are trained appropriately to implement any new banking regulations. 

Lastly I would like to advice all my readers to keep abreast of the latest updates if any, by visiting your Branch Manager and getting all the information.