Dubai: Individual as well as corporates may face trouble in cheque clearance if their KYC details are not up to date in bank records. The banks in UAE are advising customers to complete the ‘Know Your Customer’ (KYC) requirement as soon as possible or their cheque clearance facilities would be blocked.
An internal circular says that the new changes on cheque clearing system (ICCS system) have been deployed as per UAE Central Bank regulation for both individuals and corporates, where each of the inward and outward cheque transactions will require completed KYC for account basic details to process the transaction.
If KYC details are not updated, transaction will not be processed and get rejected by Central Bank processing session, the circular added.
“We will be sending another notice to the customer to update their KYC. There is a 90-day period from the date of the first notice to complete these formalities. Thereafter, we will freeze the account and it will be reactivated only after KYC formalities are completed,” a call centre executive was quoted by Emirates 24/7 as saying.
Apart from emails, SMS and notices are being sent out by banks, asking customers to complete the KYC requirement. However, those does not mention any deadline.
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