Account opening in 5 minutes soon
Customers can now open bank accounts in just five minutes, a procedure that previously took two to four days, after Bangladesh Financial Intelligence Unit (BFIU) yesterday rolled out the electronic Know Your Customer (e-KYC).
The new system will cut the existing KYC-related cost by as much as 80 percent. All banks and financial institutions will have to implement the new system by this year.
The e-KYC comes as part of the government drive towards digitalisation.
Prospective clients of banks, non-bank financial institutions, investors of capital market and policyholders of insurance companies can open accounts by using the new digital account opening procedure and without filling in any paper form, as per the guideline that was approved yesterday.
The e-KYC will also help ensure governance in financial institutions, will give momentum to the country’s financial inclusion drive and prevent money-laundering and terrorist financing, said the BFIU in a press release.
The agency has introduced two types of e-KYC: simplified and regular.
Clients will open simplified e-KYC by submitting national identification cards. This will allow them to settle a limited transaction.
For instance, a customer of a bank can deposit or withdraw a maximum of Tk 1 lakh per month under the simplified e-KYC.
But there will be no such threshold for clients who will open their accounts under the regular e-KYC. In this case, customers will have to submit documents on their source of income as well as the NID during account opening. Clients will be able to open accounts from home if financial institutions introduce app to this end. The e-KYC will help open accounts in real time.
The BFIU, the money laundering watchdog, piloted the e-KYC project in 52 places under 33 districts involving 19 banks, one non-bank financial institution and one mobile financial service provider.
The World Bank provided technical assistance for the pilot.
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