Banks asked not to close ‘dormant’ accounts

Bangladesh Bank on Monday directed banks and financial institutions not to close dormant accounts. Rather, the central bank asked them to regularise these accounts through updating the Key Your Customer (KYC) procedures, reports UNB.

The circular, issued by the Bangladesh Financial Intelligence Unit (BFIU) of central bank, said it is observed that banks and financial institutions were asked to complete the KYC procedures by March 31, 2010 for those accounts which were opened before April 30, 2002.

In this case, the due procedures must be followed by the banks and financial institutions and they have to contact their concerned customers through sending letters or other means. If the KYC procedures of these accounts were not completed by that time, these accounts will be declared as "Dormant" where customers can deposit money, but cannot withdraw.

But it is observed, the circular said, some banks and financial institutions (FIs) did not follow the instructions. Rather, they closed these accounts, which is a clear violation of the Bangladesh Bank directives and banking norms.

"Against this backdrop, the banks and FIs are asked not to close these accounts and follow the Bangladesh Bank instructions as per the AML Circular No-23 issued on February 23, 2010.