LET'S TALK BANKING
LAST week, we addressed matters relating to the rights and obligations of bank customers, in their engagements with commercial banks.
In this edition, we continue on the same path by addressing matters relating to some of the requirements of the bank-customer relationship, as well as how customers can choose the right products and services to meet their needs. The 2020 Code of Ethics and Banking Practice entails that commercial banks shall provide their prospective customers with the following: Clear and appropriate information explaining the key features of the product or service that their prospective customer may be interested in. This includes information on any fees, charges and/or commissions applicable thereon; Clear and appropriate information on the different types of accounts offered by the commercial banks, in order to assist the customers, make informed choices; To clearly state the information banks require from the customer to ascertain and keep a good record of the customer identity (this is a legal requirement for purposes of the protection of interests of customers, members of the public and the commercial bank against fraud and other misuse of the banking system); Banks are required to indicate the recommended safety measures and tips on their products and services of interest to customers and also state if these products and services are also offered through different models, for example, online/internet banking, in-branch banking or other remote banking facilities on offer; Any information provided with respect to products and services shall unless otherwise specified, be deemed to be a guideline only designed to assist customers make their own informed decisions; Commercial banks will continuously strive to improve banking services and products through product innovation; In the event that the customer wishes to switch or move their account, banks will cooperate in a timely manner with the request, subject to the terms and conditions in place. However, the customer is responsible to provide their new bank with all the relevant information to assist in the switching of account transactions. This is because, it is the responsibility of the customer to ensure that all their account details are changed with each third-party service provider.
TAXPAYERS IDENTIFICATION NUMBER ( TPIN) REQUIREMENT FOR BANK ACCOUNT HOLDERS
Effective January 1st, 2017, legislation was enacted to make in mandatory for all financial institutions registered under the Banking and Financial Services Act (BFSA) to require all bank account holders to obtain a TPIN issued by the Zambia Revenue Authority (ZRA). As such, all existing bank customers; individuals over the age of 18 years, corporate and business entities as well as Small and Medium Enterprises (SMEs) are required to submit their TPINs to their commercial banks. New customersare also required to register for a TPIN and submit it to the bank at the point of account opening. Submitting your TPIN to the bank DOES NOT MEAN that taxes will be charged on your bank account but will enable the TPIN holders transact with the ZRA and other institutions that require a TPIN such as; The Ministry of Lands for registration and transfer of titles; The Road Transport and Safety Agency (STSA) for motor vehicle registration and change of ownership; The Ministry of Commerce, Trade and Industry for import and trade licensing; ZESCO applications for new connection; for power The Patents and Companies Registration Agency (PACRA) for transfer of shares, and; Transfer of property such as mining rights Please note that registration for TPIN can be done via the ZRA website or any of the ZRA offices As always, be sure to join us next week as we continue with our series from the 2020 Code of Ethics and Banking Practice. Please share your comments and thoughts with us via Email: Mirriam.Zimba@ baz.co.zm or bazsecretariat@ baz.co.zm ONLINE SHOPPING “FRAUD TIPS” Make sure you have a secure link while shopping online. How can you make sure you have a secure link while shopping online? There are three ways in which you can make sure you have a secure link while shopping online. 1. Check that there is a padlock symbol in the browser window frame, which appears when you attempt to log in or register. The "padlock" icon is located at the top of your browser window. Be sure the padlock is not on the page itself – if it is, this will probably indicate a fraudulent site. 2. Check that the web address begins with “https://” in the address bar. The “s” after “http” stands for “secure”. 3. If you are using the latest version of your browser, the address bar or the name of the site owner.