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Banking Customer Protection Guideline

Part II - Bank Responsibilities

In a bid to promote good governance, transparency, and accountability in the banking sector, this guideline emphasizes the need for banks to prioritize customer protection. Specifically, it highlights the importance of understanding customers’ financial capabilities and needs, as well as prospects, existing and future financial obligations, and debt repayment history for credit agreements.

Staff Training and Qualification

Banks are required to properly train and qualify their staff, particularly those who interact directly with customers. This includes providing them with the necessary skills and knowledge to effectively communicate with customers, handle complaints, and resolve issues in a timely and efficient manner.

Conflict of Interest Disclosure

To maintain transparency and fairness in their dealings with customers, banks are encouraged to provide name tags for frontline staff. Additionally, banks and their authorized agents should endeavour to avoid conflicts of interest whenever possible. When such conflicts cannot be avoided, they must ensure proper disclosure and have internal mechanisms in place to manage them.

Protection of Customer Assets Against Fraud and Misuse

Banks are expected to implement robust information, control, and protection mechanisms to safeguard customers’ deposits, savings, and other financial assets against fraud, misappropriation, or other forms of misuse. These measures should be designed to provide a high degree of certainty in the protection of customer assets.

Protection of Consumer Data and Privacy

Banks are required to establish appropriate control and protection mechanisms to safeguard customers’ financial and personal information. These mechanisms must comply with all applicable legislation, acknowledge customers’ rights to data-sharing, access their data, and obtain prompt correction or deletion of inaccurate or unlawfully collected or processed data.

Complaints Handling and Redress

Banks and their authorized agents should provide customers with accessible, fair, accountable, timely, and efficient channels to submit claims, make complaints, and seek redress. These channels should not impose any cost or cause undue delays or burdens on customers. Provisions for the fair redress and compensation of consumers in the event of wrongful treatment must also be in place.

Competition

Banks are expected to allow customers to search, compare, and switch between products and banks easily and at reasonable and disclosed costs. This promotes competition and encourages innovation in the banking sector.

Part III - Consumer Rights and Responsibilities

Consumer Rights

Consumers have a range of rights, including:

  • The right to be informed about financial products and services
  • The right to consumer education to make informed financial decisions
  • The right to choose from a variety of products and services on offer
  • The right to safety in banking transactions
  • The right to confidentiality of personal information
  • The right to redress in the event of disputes or claims
  • The right to be treated fairly regardless of any complaint or dispute

Consumer Responsibilities

Consumers also have corresponding responsibilities, including:

  • Acquiring requisite financial knowledge and understanding of consumer rights and responsibilities
  • Seeking accurate information from credible sources before subscribing to financial products and services
  • Negotiating beneficial terms in contractual relationships with banks
  • Fulfilling obligations in contractual relationships with banks
  • Protecting personal information and financial instruments against unauthorized access

By prioritizing customer protection, the banking sector can promote trust, loyalty, and long-term relationships between customers and banks.