BB fines banks for failure to collect client info

Bangladesh Bank fined eight banks Tk 2 lakh to Tk 22 lakh each last week for failure to collect relevant documents for their clients' accounts.

The central bank had earlier directed all banks to collect documents, like recent passport sized photographs, photocopies of national identity cards or valid passports, under the 'Know Your Customer' (KYC) guideline.

“We issued multiple reminders to the banks to collect client documents. We have now fined the banks that are yet to collect those,” said Mahfuzur Rahman, executive director of Bangladesh Bank. He would not name the banks.

BB instructed the banks to contact their clients by mail or any other effective way to complete the KYC procedure. The Association of Bankers Bangladesh also called upon banks to collect the papers as guided by BB.

It issued a public service advert urging clients to provide their banks with the recommended documents. The ABB also warned of temporary suspension of account operations, debit card usage and internet banking, unless the papers were supplied.

The central bank introduced the KYC procedure to prevent money laundering.