StanChart tightens OTC transaction conditions
KAMPALA, JANUARY 19 – Standard Chartered Bank’s Ugandan unit has tightened conditions for over the counter OTC transactions in the wake of incidents of fraud in the local banking industry that target high value customers.
In a memo circulated to clients this week, the bank announced changes to the way high value over-the-counter cash transactions would be handled going forward.
All cash deposits worth $50,000 by holders of personal accounts will now require one to fill a Source of Funds SoF Questionnaire before the money can be accepted for deposit. The corresponding threshold for third parties deposing funds in to a customer account has been set at $25,000. The respective tiers for corporate or non-individual accounts are $100,000 and $50,000.
On the other hand, individuals making withdrawals or third party beneficiaries to funds above $50,000 from accounts held in the bank will be required to fill a Purpose of Transaction PoT Questionnaire for assessment by the branch before funds can be released. A thresholf of $100,000 has been set for corporate or other non-personal accounts.
In addition besides identity documents, third parties will be required to indicate their relationship with the account holder on the transaction slip.
Stanchart says it reserves the right to decline or delay the transactions where applicable.
“Clients with significant cash deposit transactions and are cash intensive should make prior arrangement with the branch,” the bank says in the memo.
Stanchart’s move comes a backdrop of recent incidents in the Ugandan banking industry in which high value customers, notably foreigners have fallen victim of collusion between bank staff and fraudsters to facilitate unauthorized funds withdrawals from client accounts.
In one incident, an Eritrean national was abducted by rogue members of the security forces who then proceeded to deplete his bank account before killing him.