BDL: Bank clients to get better disclosure

Banks to create a protection
unit for more control

The Central Bank (BDL) has issued a new circular instructing banks and financial institutions to provide customers with full and accurate information about the terms, benefits, and risks of their products and services.

The circular said that banks and financial institutions should clarify the rights of customers by publishing programs of awareness and information at the banks and financial institutions’ headquarters, at all branches, in all websites and any other means of communication with clients.

Banks and financial institutions have to make a list of the rights and obligations of clients. The client’s rights include, for instance, knowing about the terms and details of the product and or service, having a clear and simple explanation about different risks related to financial products and services, or having answers to any questions related to any condition or issue from the concerned employee.

The client’s obligations include providing the bank with reliable, full and accurate information when filling any samples, disclosing all financial commitments, and updating personal information, among others.

The circular said that this list of rights and obligations should be available in Arabic and any other foreign language chosen by the bank or the financial institution. The list should be at the disposal of clients at the headquarters and branches, and every client must receive a version of that list and sign a document of receipt and understanding of its content.

Banks and financial institutions have to prepare a policy of the rules of conducting banking and financial transactions with clients to be approved by the board of directors. The purpose is to deal fairly and professionally with clients, the circular said.

The circular urged the need to create a special unit to apply the rules of conducting banking and financial transactions with clients, provided it will be affiliated with the director general of the bank or financial institution and independent from the execution of transactions.

The unit has many missions, including contributing to the preparation of the policy of the rules of conducting banking and financial transactions with clients, knowing about brochures, contract samples and accounts submitted to clients and reviewing them with suggestions and contributing to the preparation of awareness and informational programs to clients.