Precautions To Be Observed While Account Opening

Customer-Banker relation starts with Account Opening, and believe me this is a point where banker need to be very much careful and vigilant. Currently regulator are imposing huge penalties on FDI, Banks due to non compliance in account opening especially, therefore special care should be taken from banker while doing account opening in order to avoid penalties.

So in this article we will discuss exactly what precautions to be taken at the time of account opening, whether you are in HBL, Bank Islami, Bank Al Habib, Meezan Bank, Alfalah Bank or any other being a Account Opening Staff you have to follow these precautions in order to avoid penalties.

• To me Account Opening Should be start with the most important thing in banking which is KYC (Know your Customer), Always try to obtain maximum information from customer so you can give best product as per his/her requirement, In this stage we should not wait for the customer to tell himself about the basic information but being a banker we need to ask from customer to tell the basic information. i,e, About customer geographic, Income, Source of income ETC
• Most of The time banker do not fill the Account Opening Form Properly, which create problem for him as well. So While doing Account Opening banker should need to fill Account Opening Form Properly and error free, and do not skip the things, always try to fill it completely because each and every information of customer is important.
• Signature of the customer should be same as on SS Card and AOF and all the signature should be matched as per Customer CNIC, if customer signature is different from CNIC, Always obtain Signature Different From CNIC Undertaking.
• Always obtain Photo Account undertaking for Photo Account.
• While Opening Customer account banker need to be very much careful while inputting customer address as the address should be as per customer cnic, If Customer address is different from cnic always ask Utility bill for address verification or rent agreement.
• Always Verify customer Business address by means of Physical verification, Business Staff should go out for physical verification of business, for verify whether is customer business is really exist or not, if physical verification found satisfactory process the account.
• PEP Confirmation, Politically exposed persons accounts should be treated on high priority and processed after high management approval

These are basic precautions which are very important to be follow during account opening, as these simple precaution could save banker from big penalities.