Please
refer to BPD Circular No. 10 dated 29th March, 2003 on the
captioned subject.
Instances
have been noted where some of the banks are issuing Term Deposit
Receipts (TDRs) or similar instruments without complying with
the requirement of “Know Your Customer (KYC)”
issued vide aforesaid Prudential Regulation. This practice
tantamounts to bypassing the instructions issued on the subject.
In
order to discourage this practice, banks/DFIs are advised
to fully comply with the requirements of Prudential Regulation
No. XI, while issuing the TDRs or similar instruments. Moreover,
if the TDRs, or similar instruments, are issued in the name
of a third party, due diligence must be conducted as per aforesaid
regulation.
Non-compliance
of above instructions will attract penal provision under the
Banking Companies Ordinance, 1962
Please acknowledge receipt.
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