KYC (Know Your Customer) Information for Opening Bank Accounts:
Nepal Rastra Bank (NRB) has instructed banks to follow ‘KYC guidelines.’ This means we need to collect some personal information from you when you open an account. The purpose of gathering this information is to accurately identify our customers, ensuring their safety and the security of their money.
The KYC guidelines of NRB mandate banks to collect from their customers.
– Photograph
– Proof of identity
– Proof of address
KYC Information for Opening Bank Accounts at Excel Development Bank Limited
- To comply with the guidelines, Excel Development Bank Limited requires a photo and documents that prove your identity and address when you open an account.
- We accept commonly available documents to make this process easy for you.
- Our Customer Service Desk can help you understand which documents are needed.
- We appreciate your cooperation in providing these documents to follow the KYC policy.
What is Know Your Customer (KYC)?
Know Your Customer (KYC) helps banks understand their customers and their financial activities, allowing them to provide better service.
Why does the Bank ask you for proof of your identity and address?
Identifying customers is crucial to protecting their interests by preventing fraudsters from using fake names, addresses, and forged signatures for illegal activities, such as cashing stolen drafts, cheques, and dividend warrants. It also helps banks avoid being used for transferring or depositing funds from criminal activities or financing terrorism. Proper customer identification helps control financial fraud, detect money laundering, monitor suspicious activities, and scrutinize large cash transactions.
Are KYC requirements new?
No, KYC requirements have always existed. Banks have consistently collected KYC documents following the guidelines provided by Nepal Rastra Bank.
Is KYC mandatory?
“Yes, it is both a regulatory and legal requirement.”
Regulatory: According to the updated guidelines issued by Nepal Rastra Bank (NRB) on February 27, 2012, regarding Know Your Customer (KYC) Standards and Anti-Money Laundering (AML) Measures, all banks must implement a comprehensive policy framework that includes KYC standards and AML measures.
Legal: The Asset (Money) Laundering Prevention Act, 2008, and the Asset(Money) Laundering Prevention Rules, 2009, mandate that banks, financial institutions, and intermediaries follow specific KYC and AML standards as outlined in the Act and its accompanying rules.
When does KYC apply?
KYC will be conducted at the following stages:
• When opening a new account.
• When the bank needs additional information from existing customers based on their account activity as part of the KYC update process.
• When there are changes to signatories, mandate holders, beneficial owners, etc.
• For non-account holders who approach the bank for high-value one-off transactions.Who is your contact point in the Bank for KYC purposes?
Your main contact at the bank will be the Customer Service Desk official or the representative who assists you with opening your account and handles your transactions.
What is Money Laundering?
Money Laundering refers to conversion of money illegally obtained to make it appear as if it was earned from a legitimate source. Money laundering is being employed by launderers worldwide to conceal criminal activity associated with it such as drugs / arms trafficking, human trafficking, terrorism and extortion. All crimes that produce a financial benefit give rise to money laundering.
How does this relate to opening bank accounts?
Criminals often begin the money laundering process by depositing their funds into a bank account, typically using fake identities and addresses. They then move these funds to other accounts, locally or internationally, or use them to purchase goods or services. These transactions can appear legitimate, making it challenging to trace the money’s criminal origins. Banks are legally obligated not only to prevent this but also to thwart criminals attempting to launder illegally obtained money through the banking system.
How could this affect you as a customer?
To prevent money laundering, we require proof of identity and address from anyone opening an account. This is standard procedure for all accounts and doesn’t imply suspicion. Criminals may try to appear normal by opening multiple accounts with small amounts. It’s crucial to verify all customers to prevent identity theft and misuse.
What proof of identity will you need?
The most reliable identification documents are those issued by a Government authority, containing a photograph, address, and signature. If you’re a Nepalese citizen, you’ll need to provide your citizenship certificate for identity verification, along with another document confirming your address. For other entities such as firms, companies, trusts, etc., documents like Partnership Deed, Trust Deed, Memorandum & Articles of Association, Certificate of Incorporation, Business Registration Certificate, PAN/VAT certificate, etc., are applicable. Our branch staff can assist you in providing the details of approved documents.
What will happen if you don’t provide required KYC information/documents to the Bank?
If you’re a new customer and don’t provide the required KYC information, the bank can refuse to open your account. If you’re already a customer and don’t provide the necessary documents, the bank can end its relationship with you. However, if you need more time to gather certain non-urgent documents, you can talk to the branch for assistance.
If you are a small depositor, would you still have to go through the KYC requirements?
Regardless of the extent of your relationship with the bank, it’s essential to follow KYC guidelines.
Help us to Help You
Please co-operate with us in preventing crime, tax evasion, and money laundering by providing the necessary documents to verify your identity when asked by our staff. Additionally, you can protect yourself and others from crime by keeping your account details and identity documents confidential.