Dubai: You definitely don’t want to be in a situation like me — stuck with a frozen bank account.
But that’s what it is for me, this National Day holidays.
The reason: I have not filled out my customer due diligence (CDD) form. Plus, my latest documents are not updated with the bank.
Have you filled out your customer due diligence (CDD) form at your bank? If you have not, then do it immediately.
And while you are at it, take some time out to update your bank with your latest documents, such as:
- Passport
- Visa
- Employment information
What is CDD?
In 2008, the Central Bank of UAE sent out a circular to all banks, exchange houses, moneychangers, investment and finance companies and other financial institutions to strengthen the anti-money laundering and combating the financing of terrorism system of the UAE.
According to this ‘Addendum to Circular No. 24/2000 — Regulation concerning procedures for anti-money laundering, all financial institutions and banks in the UAE must conduct on-going CDD on the business relationship and obtain information where the accuracy of information available is doubted, another round of CDD should be undertaken.
The circular further reads: “While entering into a banker-customer relationship, the purpose and intended nature of the business relationship should be established.
Where accounts have been prior to 14/11/2000, CDD procedures should be undertaken to ensure that there are no risks in continuing with such relationship.
How do you come to know your account is frozen?
Simple. When you are unable to use your card for purchases or withdraw cash from the ATM.
For example, in my case, I was at the petrol station and when I tried paying through my debit card, the transaction kept getting declined.
I wanted to see if everything was alright with my card and I tried to withdraw from the ATM. Same story. Again, the transaction was declined, and I was told I had exceeded my limit of withdrawal.
And so when I went to my local bank to check, the staff advised me to fill my CDD. My visa page needed to be updated as well.
Bad timing
Considering the National Day holidays, nothing can be done until it is over.
On Saturday, before the holidays started, I filled out my details. I made a physical withdraw of some money from the teller.
Updating is a must
But the head teller said he won’t be able to help me with another withdrawal until all my documents and forms were updated.
He said this is a Central Bank requirement, and has been in place for a while.
“We are just phasing out sending reminders to clients to update their CDD and personal documentations."
So what are you waiting for?
Check your details with the bank and be upto date with all information.
