Statement on Restriction of NBS Bank Accounts on 31 October 2018
In line with a Reserve Bank of Malawi (RBM) regulation, NBS Bank restricted accounts that were not KYC compliant on 31st October 2018. The Bank began communicating the requirement for all customers to update their information from February 2018. Major media channels were used to communicate this requirement to customers, including print media and radio. Notices were also placed in all Service Centres. In addition, SMS’s encouraging customers to update their KYC information were sent directly to customers and the same message was displayed on the entry page of the Bank’s mobile banking platform.
A good number of customers came forward to update their information, although some who came forward did not provide all the information required and the Bank is in the process of contacting these customers to request them to provide the missing information. At present, only those customers who have not come forward to update their KYC information still have their accounts restricted, as per regulation.
The need for customers to update their KYC information is a legal requirement that is designed to protect the customer and the Bank against fraud and money laundering and is in the best interest of the customer.
The Bank realizes that customers were affected by the account restriction and is urging its valued customers to update their account information to enable reactivation of the account. Those who have come forward with the required information have had their accounts reactivated.