What is customer acceptance policy?
Customer Acceptance Policy (CAP) lays down the criteria for acceptance of customer/s. The
guidelines in respect of the customer relationship in the Bank broadly are:
No account shall be opened in the name altering from the primary identity document, anonymous
or fictitious (benami) name(s), blank names or numeric/alphanumeric characters. Accounts shall be opened only in the name of natural and legal person/organization, the name
being the same as in the primary identity document of the person/entity. Accounts may however
be opened with different account titles identifying the nature/use/purpose/type/ of account at the
written request of the legal person/organization with appropriate control parameters.
Minimum required information and documents i.e. proper identification and information
pertaining to the prospective client shall be obtained prior to opening account or performing
business relation of any kind, as per the AML Act, AML Rule, FIU Directives, NRB
regulations/Directives and as per the product paper/policy/guidelines set forth by the Bank.
Necessary checks/ examinations/ verifications shall be made before opening a new account so as
to ensure that the identity of the customer does not match with any person with …..criminal
background or with banned entries such as terrorist individual/s or terrorist organization/s etc.
Not to open an account: Where the staff/s designated to open new accounts, find sufficient
ground/s that the identity of the prospective customer/s could not be verified and/or the
prospective customer/s is not disclosing the required identity, the reason for opening account,
transaction frequency and volume, etc and any other such information/s deemed necessary for
account opening. The refusal shall be documented properly, and shall be communicated to the
HO AML compliance Officer through Branch AML Compliance Officer.
Further, the Bank shall freeze an existing account under the situation when the designated staff/s
is unable to apply appropriate customer due diligence measure/s i.e. unable to verify the identity
and/or obtain document/s required as per the risk categorization, due to non-cooperation of the
customer or non-reliability of the data /information furnished to the Bank. Decision for closure of
such accounts shall be approved by Senior Management level official under recommendation of
AML Compliance Officer at HO and also after giving due notice to the customer explaining the
reason for such decision, Closure of such accounts shall be informed to the FIU in written.
The Bank shall not establish any business relationship/s with the shell companies and the
institution/s that deal with shell companies. Any identified business relationship/s with the
financial and other institution/s that allow the transaction of shell bank, shall be discontinued. The
bank shall not be associated with the entities located in the non-cooperative jurisdictions as
identified by the FATF or those sanctioned by the agencies that the Bank refers to like, UN,
OFAC, HMT, EU etc.
Implementation of CAP should not be too restrictive resulting into denial of banking services to
the general public, especially those who are financially or socially disadvantaged.
