Subject to any other agreement made in writing between First Community Bank Limited (the “Bank”) and the Account holder (the “Customer”), the relationship between the Bank and the Customer shall be governed by the following terms and conditions.
DEFINITIONS
- Account: Means current or savings Account (together with a finance facility and Card if the Customer has qualified for these additional services).These Terms and Conditions apply to the Customer even if the name on the Account or the number changes.
- Applicable Regulations means all applicable laws, rules and regulations as in force from time to time including without limitation the Foreign Account Tax Compliance Act (FATCA) or analogous law in any relevant jurisdiction, any anti-money laundering legislation, any data protection legislation and any rules of a relevant regulatory authority in the jurisdiction in which an account is opened
- Bank or FCB refers to Premier Bank Limited of Post Office Box Number 26219 – 00100 Nairobi, and the registered office situate at FCB Mirhab Building, Kilimani, Nairobi.
- Card: Means a plastic multi-purpose Card which the Customer may use as a cash withdrawal Card or debit Card.
- Calculation Date: Means the last working day in each calendar month.
- Calculation Period: Means a monthly period equivalent to a calendar month.
- Customer: Means the person or persons signing accesing/reading the account application form (which includes an individual, joint name(s), body corporate, partnership, association or trust) under whose name(s) the Account will be or has been opened and established with the Bank. If the Customer Account is held jointly, these Terms and Conditions and the special conditions (if applicable) apply to the entire Customers individually as well as jointly.
- Drawer: means the person named on a cheque book and who is the Bank’s Customer writing a cheque in favour of a Payee.
- Finance: Means the loan facilities described in the Bank’s brochures to be available in its branches from time to time..
- Joint: Means two or more Customers.
- Mandate: means the document which authorizes the conduct of the Customer’s Account by setting out the specimen signatures of those who can operate the Account.
- Payee: Means the person named on a cheque to which the amount described on the cheque is to be paid.
- Personal Information: Means personal and financial information about the Customer that the bank obtains from the Customer, from the Banks own credit or anti-fraud checks or from third parties such as credit reference agencies, fraud protection agencies or other organizations.
- PIN: Means a “personal identification number” and is a confidential number which allows the Customer to use their Card to buy things, withdraw cash and use other services at self-service machines.
- Return: means in respect of each Calculation Period, the gross return less any tax which is to be deducted pursuant to Special Conditions and Terms and Conditions of the Savings Account.
- Savings Account: Means the Customers savings Account. The Bank’s Terms & conditions apply to the savings Account even if the name on the savings Account or the number changes.
- Self-Service machines: Means an automated teller machine (ATM) or free standing machine at which the Customer can use their Card to get cash, information and other services.
- Shari’ah Supervisory Board: means the Board comprising of eminent religious scholars established by the Bank to advise us on the Shari’ah rules and principles on which an Account and all Bank products and services operate.
- Special Conditions: means the special conditions that govern any additional facilities such as savings Account, finance facility or any other product or service that the Customer may apply for.
- Tariff list: Means the list of charges, costs, fees or other expenses which apply to the Customer’s Account and which are given to the Customer upon request.
- Terms and Conditions: means these general terms and conditions that govern the Customer’s Account described in this document.
- Withdrawal: Means a withdrawal from the Customer’s Account which is only completed once the Bank has processed the Customer’s request to draw money out of the Account.
- Working Day: Means any day on which Bank is open for business.
Account opening Availability
We may at our sole and absolute discretion decline to establish an
account relationship with any applicant for an account. We will be
under no obligation to communicate the reason for our decision to the
applicant.
In applying to us to establish an account relationship you are agreeing
to complete the Account Application Form fully and truthfully. At
account opening and at any time throughout the lifetime of the
account, you are also agreeing to provide us with any supplementary
documentation and information we may request from time to time in
order to undertake our due diligence obligations as required under the
Applicable Regulations. You are also agreeing to provide us with any
documentation and information we may request from time to time
where you appoint a third party as a signatory on your account in
order for us to undertake such due diligence requirements.
Applicants must be at least 18 years of age to open an account with us
or to be a party to a joint account.
Communications
You authorise us to treat any communication which we reasonably
believe is made (whether over the telephone, by post or otherwise) by
you or otherwise notified to us as having been made by you, without
further enquiry.
We give no undertaking, warranty or representation that access will
always be available by telephone or any means of electronic
communication during normal operating hours.
You consent to receiving information from us by means of our website,
www.firstcommunitybank.co.ke where it is appropriate for us to
provide information in this manner.
All communications by telephone may be recorded.
We will be entitled, but not obliged, to communicate with you
electronically.
Instructions from you to us by any form of electronic communication
will only be accepted at our discretion where we hold a signed request
and indemnity from you in relation to accepting instructions by means
of the particular form(s) of electronic communication. Such
indemnities are included for your consideration and signing in the
application forms for accounts with us.
We may decide, at our sole and absolute discretion, to act or decline
to act on general enquiries received via email or other electronic
communications.
Instructions
You authorise us to accept and act on your instructions, even if carrying
out these instructions creates a debt on your account.
We may at our sole and absolute discretion delay or refuse to act on
any instruction (including instructions to pay out of an account) or
accept a payment into an account if we reasonably believe that:
• you did not give the instruction;
• we are unable to authenticate to our own satisfaction the source of
the instruction;
• the instructions are unclear, incomplete or not in the required form;
• there is a security or other legal reason to do so;
• complying would be contrary to any law, regulation, code or other
duty applicable to us;
• it would cause you to exceed any limit or restriction which applies to
your account;
• doing so might expose us to action or censure from any government,
regulator or law enforcement agency; or
• it is for a payment to or from, or you are trying to make a card
payment in, a limited number of countries (we will tell you which
countries if you ask us).
If we delay or refuse to make a payment, we will notify you and if
possible give our reasons for doing so (unless a legal reason or certain
other limited circumstances beyond our control prevent the provision
of this information). You can also contact us to find out why we have
delayed or refused to carry out your instruction. In the event that we
exercise our discretion in the above circumstances, we shall not be
liable for any loss, direct or indirect, arising as a consequence of us not
making such a transfer from or accepting a payment into an account.
Application of monies
Subject to these Terms, monies introduced by you, or by any other
person or entity on your behalf or for your benefit, will be applied to
the account.
In the event that our due diligence obligations cannot be completed to
our satisfaction, any monies received from you or on your behalf may
be returned to the remitter at our sole and absolute discretion at any
time. We, and our directors, officers and employees shall not be liable
for such monies or losses arising from us sending money back and you
indemnify all of the aforesaid in respect of losses sustained and / or any
costs otherwise incurred through funds being returned to the remitter
for whatever reason
1. Shari’ah Compliance
1.1. Both the Bank and the Customer agree to be bound by the rules
and the guidance of the Shari’ah Supervisory Board with respect to all
matters relating to the interpretation and application of Shari’ah to the
Account.
1.2. Credit balances in the current Account shall, according to the
principles of Shari’ah, be deemed as a Qard Hassan (loan without
Return) to the Bank, on demand the Bank undertakes to pay the credit
balance in full to the Customer.
1.3. Details of the members of the Bank’s Sharia Supervisory Board can
be found on the Bank’s website www.firstcommunityBank.co.ke
2. The Customer’s Account and the facilities available
2.1. To open an Account with the Bank and/ or obtain finance, the
Customer must be at least 18 years of age. Before the Bank is able to
open an Account for the Customer the Bank may ask for proof of
identity and address.
2.2. The specimen signature of the Customer, registered with the Bank,
shall be deemed as the basis for dealing with the Customer’s Accounts
and shall remain effective unless amended or cancelled. Such
amendment or cancellation shall be valid only on the next working day
following the day of receipt of such instructions by the Bank.
2.3. Bank charges and fees may vary according to the type of service
that the Bank provides to the Customer and the type of Account that
the Customer has with the Bank. When the Customer opens an
Account with the Bank, upon the Customers request the Bank will
provide the Customer with the Bank tariff list. The Customer may
further visit the Bank’s website, for a perusal of such tariffs.
2.4. An Account may only be operated by the Customer or by those
who are authorized in accordance with the completed mandate forms
given to the Bank. If the Customer wishes another person to operate
the Account, the Bank will accept a completed and signed power of
attorney that is signed in accordance with the customer’s authority
held with the Bank in front of the Bank’s officer in charge. For purposes
of Joint Accounts all Account members must sign if to authorize a non
Account member to operate the Joint Account.
2.5. The Individual/ Personal Account cannot be used as a business
Account. If the Customer wishes to open a business Account for
financial matters the Customer should apply for a business Account.
2.6. The Bank will only open an Account once the Bank has received a
duly completed application form (together with any other documents
and information that the Bank may have requested) from the
Customer and carried out any searches that the Bank consider
appropriate. The Bank reserves the right to decline opening an
Account in its sole discretion and if the Bank refuses to open an
Account, the Bank will not be obliged to explain reasons for such
refusal.
2.7. The Bank does not permit overdrafts, so the Customer must not
allow Accounts to become overdrawn. You are therefore not
authorised to enter into Transactions to a value in excess of the credit
balance (if any) of the Account unless it has been previously agreed
with us. We will charge a fee on the Account in respect of
unauthorised overdrawing on the Account and such fees will be
charged in accordance with our Tariff List
3. Joint/ Partnership/ Limited Liability Company
Accounts
3.1. The Customer may apply for an Account to be opened in joint
names for a Joint / Partnership or Limited Company. These Terms and
Conditions shall apply to all members of such a company or
partnership jointly and severally. Since such a Joint Account shall be
operated jointly, the Bank may disclose any information that one of the
Customer gives to the Bank in connection with the Customer’s
Account to the other.
3.2. A Joint Account can be operated by any one of the mandated
Customer independently of the other Account holder or holders. This
means that depending on the mandate, any Account holder may issue
Cheques use a Card or give other banking instructions. The actions
taken and or instructions given to the Bank by any one of the
Customer will be binding on the other Account holder or holders
without having to make any further enquiries. However the Bank
reserves the right to call any of the other Joint Account holders to
confirm any transactions on such an Account.
3.3. In the event of a dispute as regards cancellations of a Joint
Account’s mandate / instructions on who should operate the same, the
Bank shall treat such dispute as notice to cancel all Account
transactions. In such circumstances the Bank will ask the Customer to
return any Cards and unused cheques associated with the Customer’s
Account. Until all Cards and cheques are returned, Card and cheque
transactions will continue to be deducted from the Customer’s
Account and all of the Customers will be responsible for such
transactions individually as well as severally. The Bank shall however
remain fully indemnified against any loss, claims, or suits incurred by
reason of not making any payments to a third party in the event that
such a Joint Account has a disputed matter outstanding.
3.4. If one Account holder dies the Bank will require the Customer to
provide the Bank with a certified copy of the death certificate or at the
Bank’s sole discretion a duly certified copy of the High Court of Kenya’s
Certificate of Confirmation of Grant. The surviving Account holder or
holders have full authority to instruct the Bank on matters relating to
the Account, including the payment of any credit balance, and will be
responsible for any obligations connected with the Account, including
payment of any debit balance.
4. Depositing money into the Customer’s Account
4.1. The Customer may deposit money into the Account by depositing
cash or cheques at one of the Bank’s branches or by transferring
money directly into the Customer’s Account through electronic
transfer. Deposits by third party into the Customer’s Account will be
accepted without any responsibility to the Bank.
4.2. If a cheque is returned unpaid the Bank will deduct the returned
unpaid amount from the Customer’s Account and may inform the
Customer that this has been done. The Bank may lodge the cheque
with the Drawer’s Bank or the Bank may return it to the Customer. The
Bank may charge the Customer a service fee if the Bank has to do this.
4.3. We shall use the funds deposited with us by you in the account
Shari’ah complaint activities and you hereby authorise us to use the
said funds accordingly to generate income for the Bank, however your
money will be available to you on demand.
5. Collection and Remittances
5.1. Cheques/Drafts drawn to the order of Customer deposited into
the Account shall be accepted as collection item, unless agreed
otherwise by the Bank and in accordance with the Banking practices
prevailing. The Bank has the right to reject cheques / draft or any other
securities drawn to the order of a third party. The Bank maintains the
right to debit any Account with any unpaid and non collected items in
addition to Bank’s charges without assuming any responsibility incase of
non collection of such items.
5.2. Drawing against any cheques under collection shall only be allowed
after the actual realization
5.3. The Bank shall pay the actual value of an inward telegraphic transfer
/SWIFT remittances, drafts and Bank cheques received in favour of the
Customer after deducting the Banks commission and charges
5.4. The Customer agrees that the purchase by the Bank of a draft(in
foreign currency)issued previously by the Bank at the request of the
Customer, shall be at the discretion of the Bank and at the prevailing
exchange rate on the day of purchase after deducting the commission
and charges of the Bank.
5.5. The Bank shall credit all the inward remittances and drafts of the
Customer in the Customer’s Account in the currency of such Account
unless the Bank receives instructions contrary there to from the
Customer and the deposit shall be at the exchange rate prevailing on
the same day of the deposit.
5.6. The Bank shall have the right to reject payment of any draft or
transfer if the name of the beneficiary and /or his /her Account number
does not match the Bank’s records or for any other reasons.
5.7. All the transfers effected by the Bank according to the Customer’s
instructions shall be at the Customer’s expense and responsibility, and
the Bank shall not be responsible if the amount credited to the
Customer’s Account is reduced due to the charges or decline in value.
The Bank shall not be responsible if the Customer is unable to encash
the funds on Account of any restrictions issued by the concerned
authorities.
5.8. The Bank and its correspondents are not liable for the
consequences of any irregularity, delay, mistake, telegraphic error,
omission or misinterpretation that may arise from and against any loss
which may be incurred through its correspondents failing to properly
identify the persons named in the instruction overleaf or retaining the
funds should the Bank or its correspondence deem such retention
expedient pending information on the identity of any person or of the
above instruction by a letter or otherwise
5.9. Should all or any of the transfers be unpaid and refunded to the
Bank, the Customer can only claim the value thereof at the buying rate
of the day when the refund takes place. The refund cannot be effected
until the Bank has received a definite advice from its correspondents
and the funds are unpaid and that the original instructions have been
cancelled.
6. Withdrawals from the Customer’s Account
6.1. Subject to there being sufficient cleared funds in the Customer’s
Account, the Customer may withdraw by any of the methods set out
below:
i. by using the Card at a self-service machine or by making purchases in
a shop; or
ii. over the counter (the Customer may need to arrange this with the
Bank depending on the amount the Customer may wish to withdraw);
or
iii. by writing a cheque; or
iv. by setting up a regular standing order; or
v. by way of direct debit instruction; or
vi. by any other way the Bank may agree with the Customer in writing.
6.2. The Bank may restrict the daily amount the Customer can
withdraw using the Card. When the Customer opens an Account the
Bank will inform the Customer of the daily limit applicable to the
Account, however such limit is subject to change and such changes
shall be informed to the Customer through the addresses indicated on
the Account opening forms at the Bank’s sole discretion.
6.3. Cash withdrawn from the Customer’s Account using a Card in a
self-service machine will usually be debited from the Customer’s
Account immediately. Other payments from the Customer’s Account,
such as standing orders, direct debits or cheques will be debited on the
working day that they are due for payment. Sometimes payments to be
made from the Customer’s Account may be subject to a delay for
procedural checks to prevent fraud or for other reasons.
6.4. The Bank shall charge the Customer for any withdrawals made
from the self-service machines. The Bank’s current charges for such
withdrawals shall be advised to the Customer upon requisition and
obtaining of a Card, and the same charges shall also be posted on the
Bank website as well as be available on the Bank’s Tariff List which is
available in all the branches.
6.5. Customers who cannot sign their names ( Blind/ illiterate
Customers) should produce a proper identification acceptable to the
Bank to perform the transaction before the concerned Bank official by
using the finger print and stamp (if any) before drawing any amount
(applicable to individual Accounts only). For the interest of the blind
and illiterate Customers the Bank will not issue a cheque book or Card
for them unless through an authorised agent.
7. Writing cheque and stop payments
7.1. If the Bank has agreed to provide the Customer with a cheque
book and the Bank has issued the Customer with the same, it is the
Customer’s responsibility to ensure that each cheque issued is
completed correctly. The Customer must not alter or amend in any
way the printed matter on the cheques. The printed matter is
important for a number of reasons and if changes are made the Bank
may decline to honour the cheque.
7.2. When the Customer issues a cheque, the name of the Payee, the
amount in words and figures as well as the date should be legible. The
Customer must sign the cheque otherwise it shall not be valid for
payment.
7.3. The Customer should not write a future date on a cheque, as it
may not prevent the Payee from paying it into their Bank Account
before that date. If the Customer issues such a cheque the Bank shall
dishonour the same and stand fully indemnified for any losses or claims
incurred by the intended Payee.
7.4. The Customer must only write cheques in the same currency as
the Customer’s Account. If the Customer wants to make a payment in
another currency the Bank shall advise the Customer on how best to
do this.
7.5. There is important information about the security of the
Customer’s cheque book and writing cheques inside the cheque book
that the Bank will provide to the Customer. This information forms part
of these Terms and Conditions and the Bank shall presume the
Customer’s acceptance of the conditions attendant to issuance of a
cheque book and operation of an Account.
7.6. Cheques can be presented for payment by the Payee up to six
months after the date written on the cheque. The Bank does not
usually pay amounts from the Customer’s Account if the cheque is
presented after this period although the Bank may in its sole discretion
honour the cheque. Where the Bank decides to pay a cheque after this
period the Bank shall not be liable to the Customer in any way
whatsoever.
7.7. The cheque book and all cheques remain the Bank’s property and
must be returned to the Bank on demand. The Bank will not usually ask
the Customer to return the Customer’s cheque book or the unused
cheques unless something has gone wrong, for example where the
Customer has breached these conditions or the Bank believes that the
cheques are being used for fraudulent purposes either by the
Customer or by someone else.
7.8. The Customer may request to “stop” the payment of one of the
cheques by contacting the Bank by telephone to be followed by a
written and signed request or by visiting the Customer’s local branch.
There are certain circumstances where the Bank may not be able to
“stop” the payment such as where the Bank has already made the
payment.
7.9. When the Customer contacts the Bank with an instruction to
“stop” a cheque the Customer must give the Bank as much information
as possible about the cheque the Customer would like to be
“stopped”. The Bank will need to know who the Payee is, the cheque
number, the amount and the date written on the cheque. A service fee
is charged by the Bank for “stopping” a cheque unless the Customer’s
request is because the cheque book has been stolen.
7.10. The Customer must inform the Bank immediately when they
become aware that their cheque book or any cheques have been lost
or stolen, or if the Customer thinks someone has altered one of their
cheques. Once the Customer has informed the Bank, the Bank shall
cancel the Customer’s unused cheques and issues the Customer with
a new cheque book. If the Customer later finds the missing cheque
book, the Customer must return it to the Bank for destruction.
7.11. If the Customer suspects that a cheque or several cheques have
been used fraudulently, the Customer must inform the police
immediately. The Customer further and hereby agrees that by reason
of the Customer’s cheque book or cheques(s) being lost, stolen or
used fraudulently, the Bank may disclose information relating to such
fraudulent use and the Customer’s Account details generally to the
police or relevant authorities for purposes of further investigations on
the fraudulent activity.
7.12. The Bank may close the Customer’s Account or blacklist the same
for issuance of four (4) or more cheques against no funds in the
relevant Account within a period of six (6) months.
8. Lien and Set-off
The Bank reserves the right to set off any deposits which the Bank is
holding (or entitled to receive) on the Customer’s behalf in order to
meet any liabilities which the Customer may have incurred with the
Bank, including liabilities incurred by way of fees and/or charges. Any
liabilities still outstanding after set off will remain the Customer’s
responsibility. The Bank reserves the right to retain or make deductions
from, amounts that the Bank owes to the Customer or are holding for
the Customer where the Customer has failed to discharge the
Customer’s liabilities to the Bank howsoever arising.
9. Foreign transactions
If the Customer carries out a Card transaction whilst abroad and in a
currency other than the Kenya Shillings, the Bank will convert the
foreign currency into Kenya Shillings before debiting the Customer’s
Account. A commission charge for exchanging currencies may be
payable if the Bank has to arrange for such conversion with a third
party, the Bank shall debit the Customer’s Account with such charges
and itemize on the Customer’s next statement.
10. Statements of Account
10.1. Statements of Account will be sent to the Customer semi
annually for savings Accounts and monthly for current Accounts (unless
otherwise agreed) or if required by law or any regulation. If the
Customer has a Joint Account, the Bank is required by law to send all
Customers a separate statement unless the Joint Account holders
inform the Bank in writing to send only one statement and to which
Account holder.
10.2. Apart from sending the Customer a regular statement, the
Customer may request, at a cost, a mini-statement at any of the Bank
branches. The Bank will require the Customer to produce proper
identification before the Bank gives out any Account information.
10.3. Upon receipt of the Customer’s statement, the Customer should
check it to make sure that all entries are correct. If the Customer thinks
an entry is wrong the Customer should inform the Bank immediately
so that the Bank can investigate the entry for the Customer and
resolve the matter.
10.4. Bank will ensure that all transactions on the Customer’s Account
are properly recorded. If however for any reason, there is a genuine
mistake or error in the recording of any transaction (either a credit or
a debit transaction), the Bank will rectify the mistake and/or error by
taking such action as may be appropriate which may include recovering
sums wrongly paid or credited to the Account. In such situations the
Bank will not require authorization from the Customer to debit the
Customer’s Account.
10.5. Bank may stop sending the advices or statements of Account if
they are returned twice to the Bank as undelivered.
11. Additional services
The Bank may agree to give the Customer additional services relating
to the Customer’s Account. These additional services are not available
to all Customers and depend on a number of factors such as
maintaining a minimum balance or having the Customer’s salary
credited to the Customer’s Account.
12. Standing Orders, Direct debits and Debit Card
Standing Orders and Direct debits
12.1 Standing orders and direct debits are both ways in which the
Customer can make regular payments. The Customer can instruct the
Bank to make regular payments by completing a standing order form
(available from any branch) and by giving the Bank details of the person
or company to whom the Customer want payments to be made to. A
direct debit authorises the Bank to debit money from the Customer’s
Account when the Bank receive instructions from a specified company
or person. A direct debit is set up directly by the Customer with the
specified person.
12.2 The Customer can cancel a standing order or a direct debit by
contacting the Bank. Should the Customer wish to do so, the
Customer must notify the Bank in writing at least five (5) working days
before the date on which the standing order or direct debit payment
is due. If the Customer is canceling a direct debit, the Customer should
also inform the specified person.
Debit Card facility
12.3 When the Customer opens an Account the Customer may apply
for a Card. The Bank Card can be used as a debit Card and cash
withdrawal Card in a self service machine although the Customer may
not be eligible for some or all of these features. The Bank will inform
the Customer what features the Customer qualifies for when a Card is
granted.
12.4 When the Bank sends the Customer a Card the Customer should
read the information that the Bank provides along with the Card. The
information will inform the Customer on how to use the Card and
what to do if the Card becomes lost, misplaced or stolen.
12.5 Upon receipt of the Card, the Customer must sign it immediately. The
Card only becomes operative when the Customer has correctly completed
the activation process set out in the instructions delivered with it.
12.6 The Bank system will automatically generate a PIN for the Customer
although the Customer may change it at a self-service machine when the
Customer uses the Card for the first time where the self-service machine
offers this service. The Customer will be able to use the same PIN to make
transactions with the Card.
12.7 The Card shall remain the property of the Bank and must be sent back
if the Bank asks for it. It is only valid from the “valid from” date shown on the
Card until the “expiry date” which is also shown on the Card. Prior to the
expiry date, the Bank may send the Customer a replacement Card which
the Customer should sign immediately. The old Card should be destroyed by
cutting it into at least four pieces.
12.8 The Bank will usually debit Card transactions on the same working day.
Once a payment made by a Card has been authorised the Customer can no
longer cancel it.
Looking after the Card
12.9 At all times, the Customer must:
i. not keep the Card together with any cheque book for their Bank Accounts;
ii. keep the Card safe and to prevent it from being lost, stolen or used by
anyone else;
iii. not inform or show anyone the numbers printed on the Card.
12.10 The Customer must take all reasonable steps to keep the PIN secret
at all times and the Customer must:
i. Immediately destroy the PIN Mailer upon receipt and memorize the PIN
ii. Not to write down the PIN on the Card or anything usually kept with it.
iii. If the Customer does write down the PIN, the Customer must disguise it
so that no one will know that it is a PIN.
12.11 The Bank may replace the Card (including re-numbering) at any time.
12.12 Where a retailer or supplier of services asks the Bank for
authorisation before accepting payment by the Card, the Bank may decide
not to give authorisation if:
i. the Card has been reported lost or stolen;
ii. the Bank has reason to suspect it has been lost or stolen;
iii. the Customer or other Card holders to the Account have breached the
conditions and
iv. Taking Account of all other transactions the Bank has authorised, including
those not yet charged to the Account, there are insufficient funds available
in the Account.
12.13 The Customer will not be responsible for a Card or PIN being used
after the Customer has reported to the bank that it is lost, stolen or might
be used by someone else (unless it is used by the Customer or on the
Customer’s behalf).
12.14 If the Card is used before the Customer receives it, the Customer will
not have to pay anything unless the Customer has acted fraudulently or
without reasonable care.
12.15 The Bank shall not accept liability if the Bank cannot provide any of the
services in respect of the Card for a reason beyond the Bank’s control which
include but not limited to industrial strikes or action, acts of God and nature,
power failure or network failure or non availability of cash in the automated
teller machines.
12.16 If the Customer loses the Card, or it is stolen / misplaced or the
Customer think that someone else might use it, or any other reason that
would make the Customer suspect that the Card may be used by an
unauthorized user, the Customer must inform the Bank immediately at any
of the Bank branches of such an event to enable the Bank take the necessary
precautionary measures.
12.17 If the Customer does not recognize a Card transaction which appears
on the Customer’s statement, the Bank will give the Customer more details
if the Customer asks the Bank. In some cases, the Bank will need the
Customer to give the Bank confirmation or evidence that the Customer has
not authorised a transaction. The Bank shall however not be liable for any
loss incurred by the Customer by reason of a lost, misplaced or stolen Card
whether the same has been reported or not.
13. Closing the Account
13.1 The Customer may close the Account at any time by giving the Bank
instructions in writing. The Customer must also return any cheque book
issued and/or Card to the Bank.
13.2 The Bank may close the Customer’s Account at any time by giving the
Customer at least thirty days notice in writing. The Bank will not be obliged
to explain why the Account is being closed although the Bank may decide to
give this information to the Customer as part of the Bank best practice
procedures.
13.3 There are certain circumstances when the Bank may close the
Customer’s Account without giving the Customer the notice described. The
Bank may be required to close the Customer’s Account by law or if the Bank
believes that the Customer’s Account is being used for criminal or
fraudulent purposes.
13.4 If the Customer’s Account is closed, the Customer must return any
Card that the Bank has issued to the Customer and any unused cheques.
The Bank will require the Customer to repay any money that is owed to the
Bank, including the amount of any cheques the Customer has issued or any
Card transactions that the Customer has made and which the Bank has paid,
as well as any outstanding fees or charges associated with the Customer’s
Account and payable by the Customer in accordance with any of the Bank’s
Terms and conditions.
13.5 On closing the Customer’s Account, the Bank will return the balance (if
any) on the Account to the Customer unless the Bank is prohibited from
doing so by law.
13.6 Forbidding Debit
The Bank may under certain circumstances restrict debits on your account
without your express authority. The circumstances may include when:-
i. the Bank has been served with a court order by a court of competent
jurisdiction directing the same;
ii. the Bank has been served with an agency notice from any governmental
or regulatory authority such as the revenue authority;
iii. the Bank is made aware of any dispute in the running of the account;
iv. the bank has cause to believe the account is being used for fraudulent,
suspicious, illegal or irregular activity such as identity theft
v. the Bank has without success sought to obtain relevant documents relating
to the account holder or the nature of certain transaction (s); or
vi. any other case that the Bank is legally bound
14. Notices and change of address
14.1 The Bank will send all written notices, letters and statements to the
address last known to the Bank. Written notices will be deemed to have
been received five working days after they have been sent by the Bank. If the
address last known to the Bank is abroad the period will extend to fourteen
working days.
14.2 As communicating with the Customer is important/vital the Customer
must advise the Bank immediately in writing if the Customer’s address
changes. If the Customer fails to advise the Bank of a change of address and
the Bank incurs costs as a result, the Customer may have to reimburse the
Bank for those costs.
14.3 Notices given by either the Customer or the Bank under these Terms
and conditions will only be valid if given in writing.
15. Privacy and Data Protection
15.1 The Bank will treat all the Customer’s Account details and Personal
information as private and confidential (even when the Customer is no
longer a Customer). The Bank will not reveal the Customer’s name, address
or any details of the Customer’s relationship with the Bank to anyone, other
than in the following exceptional cases:
i. where the Bank has to give information under the law and Applicable
Regulations;
ii. where there is a duty to the public to reveal the information;
iii. where the Bank’s interests require the Bank to give the information (for
example to prevent fraud) but the Bank will not use this as a reason for
giving personal information or information about the Customer’s Account
to anyone else; or
iv. where the Customer or the individual concerned ask the Bank to reveal
the information, or the Customer has given consent;
15.2 The Bank may need to convey a Customer’s personal information to
other companies in the Bank’s group to ensure the efficient management
of the Customer’s Account with the Bank. Where the Bank does this, the
Customer’s personal information will not be used by them for the purposes
of marketing without the Customer’s express consent or, where relevant,
the express consent of the person concerned;
15.3 Where the Bank needs to outsource work to third parties, the Bank
will require the third party to observe the same levels of confidentiality and
security that the Bank does. When the Bank needs to give the Customer’s
personal information to such a third party the Bank will require them to
meet the same levels of privacy and confidentiality as the Bank demands
and at all times to abide by the appropriate legal requirements;
15.4 Where the Bank transfers the Bank rights or obligations under this
agreement.
15.5 At the time of the Bank considering the Customer’s application, and
from time to time during the Customer’s relationship with the Bank, the
Bank may need to make an official search at various registries / credit
reference agencies. The Bank will keep details of the search, even if the
Customer’s application is not accepted.
15.6 The Bank needs to make these searches so that it can obtain sufficient
information to make a proper assessment on which of the Bank products
and services are most suited to the Customer’s needs and to help verify the
Customer’s identity. Carrying out these searches enables the Bank to open
an Account more quickly and helps to lessen the risk of fraud or other
criminal activity taking place.
15.7 You agree that we may transfer your personal data (including sensitive
personal data) to or process it in other countries, whether or not those
other countries have equivalent data protection legislation to the
jurisdiction from which the account is provided. We shall use our
reasonable endeavours to ensure that Customer information, including any
personal data, is protected to the standards which we apply in the
jurisdiction of the account
15.8 To help the Bank form an accurate view of the Customer’s existing
financial commitments, searches made by the Bank, or a credit reference
agency, may “link” to the records of others that have entered into joint
financial obligations with the Customer (such as business partners and, if
relevant, husbands, wives or other family members). Existing information
held by credit reference agencies or other banks about the Customer may
be “linked” to other persons in this way. If so, the Customer may be treated
as financially “linked” for the purposes of any application the Customer
makes to the Bank, which means that the Customer may be assessed in
relation to joint obligations as well as those for which the Customer is solely
responsible.
15.9 If the Customer applies for one of the Bank products or services with
another person or persons (for example in a Joint Account) the Customer
is declaring that the Customer is entitled to disclose information about the
other person or persons and authorise the Bank to search, “link” or record
information. Where the Bank carries out a search through a credit
reference agency a “link” will be created by the agency between the
Customer and the other person or persons. By making this application the
Customer and the other person or persons understand that each other’s
information will be taken into Account in future applications by any of the
Customer.
15.10 The Bank may give details of the services and products that the
Customer has, and the way that the Customer manages the Customer’s
Account, to a credit reference agency. If the Customer fails to comply with
the conditions or the special conditions, the Bank may inform a credit
reference agency and this may affect the Customer’s ability to obtain
financial services elsewhere.
15.11 Any of the information that the Bank gathers from a credit reference
agency or through the Bank own research may be used by the Bank for the
management of the Customer’s Account, identification purposes, debt
tracing and the prevention of money laundering.
15.12 To prevent fraud and assist in the verification of identity, the Bank may
exchange information with other organisations and receive information
from them. If the Customer gives false or inaccurate information and the
Bank suspect fraud, the Bank will make a record of this. The Bank may also
search records and information held by anti-fraud agencies and other
organizations.
15.13 The Customer has a right to access records held by a credit reference
bureau or fraud prevention agency. If the Customer asks, the Bank will
inform the Customer how to get a copy of the information that credit
reference agencies have about the Customer, or their leaflets that explain
how credit referencing works, and there may be a charge for this. The Bank
is happy to provide contact details for such agencies on request.
15.14 Sometimes the Bank may be approached by another person
requesting that the Bank provides a financial reference about the Customer.
If this happens the Bank will contact the Customer and ask the Customer
to provide the Customer’s written permission to do this.
15.15 Other organizations may subsequently use the records and
information held by Bank after carrying out the search, including the details
of a credit decision made about the Customer or other persons associated
with the Customer, as well as using outside agencies to carry out credit and
identity checks, the Bank will need to carry out its own credit checks to
assess the Customer’s application or to check details relevant to the
Customer’s existing Account with the Bank. Where the Bank does this, the
Bank may also use its own credit-scoring methods and carry out its own
identity checks, including searching the relevant government departments’
Registries / credit reference agencies.
16. Inactive/Dormant Accounts
An Account shall be considered inactive/dormant if no transaction is
effected for a period exceeding six months to one year respectively and the
Bank shall, in this case, have the right to reject any debit to the Account
including cheques or any withdrawals. The Customer shall be fully
responsible for any consequences, claims, legal procedures or losses
pertinent thereto, and the Customer declares that the Bank shall not in any
case be responsible therefore, and the Customer should approach the Bank
to re activate or close the Account. Where the Bank decides to pay any
cheque of a dormant Account status the Bank shall not be liable to the
Customer in any way whatsoever.
17. Special Terms and Conditions.
Note: if you are only
a) Current account-refer to section (1) below
b) Savings account-refer to section (2) below
17.1 Current Account
a. The credit balance in the current account is a Qard to the bank on which
no profit or other forms of returns is payable
b. The bank undertakes to pay the credit balance in full subject to the
customer’s compliance with Terms and conditions
c. The bank may invest all amounts outstanding in the current account in
such a manner as the bank deems fit and no returns of whatsoever nature
(including profit) is paid out on the current account
d. The current account shall be subject to the minimum balance
requirements prescribed by the bank from time to time and advised to the
customer and may be operated in such denomination approved by the
bank from time to time.
e. Withdrawals from the current account shall be made through cheques
issued by the bank, written instructions or an ATM card as provided for in
the general terms and conditions. Deposits in the account may be accepted
in all bank’s branches by cash, Cheque or through the bank’s ATM or cash
deposits machines as provided for in the general terms and condition.
f. Transfers between accounts may be performed
g. The bank shall have the right to refuse to pay any payment order written
on forms other than the bank’s forms without any responsibility whatsoever
on the part of the bank
17.2 Savings account
The Special Conditions set out below apply to Savings Accounts and are in
addition to the Terms and Conditions herein.
a. The customer (being the owner of the funds( the mudaraba funds) or
Rab ul maal authorizes the bank ( being the mudarib or fund manager) to
invest the mudaraba funds in the savings account according to the
principles of Shari’ah. The outstanding balance in the savings account
maintained by the customer shall be invested by the bank in a joint
investment pool( the mudaraba pool) together with funds from the bank’s
equity and other depositors and shall be managed and invested by the
bank in certain assets under unrestricted basis ( or restricted if available) in
accordance with the principles of Shari’ah
b. The profits realized as a result of the bank’s investments activity under
sub paragraph 17.2(a) above of the special terms and conditions, shall be
allocated between the bank and the customer as follows:
i. in consideration of the services provided by the bank hereunder, the
bank shall be entitled to a pre-determined percentage of share of the
mudaraba profit, for the corresponding investment period.
ii the remaining mudaraba profit after deduction of the mudarib’s profit
share, the profit amount shall be allocated amongst depositors by
reference to weightages in accordance with sub-paragraph 17.2(d) of the
special terms and conditions. The customer’s share of the profits will be
determined in accordance with the per annum rate) (the “profit rate”)
applicable to the relevant category to which then customer savings
deposits belongs and shall be paid on the relevant profit calculation date.
iii. the mudarib’s profit share and the weightages applicable to each
category shall be determined by the bank. Any profits made by the bank
from the mudaraba pool shall be distributed between the customer and
the bank with customer being entitled to twenty percent (20%) and the
bank being entitled to eighty per cent (80%) of such profits respectively.
c. The weightages shall be posted on the bank’s website on a monthly
basis. The bank reserves the right to vary the mudarib’s profit share and/or
the weightages from time to time in accordance with the prevailing
regulations and/or directives applicable to it and such variation shall be
deemed to be affective upon commencement of the profit calculation
period immediately succeeding such variation. The customer shall be
notified of such variation and shall be deemed to have accepted such
variation if the bank does not receive any notice to the contrary within
seven (7) days from the issuance of such notice.
d. The profit amount for a savings account shall be calculated on the daily
average balance of the savings accounts for the relevant investment period
and the profit calculation period is deemed to be one (1) calendar month
unless the customer withdraws whole or part of the balance whichever
he/she desires. The profit shall be paid less any applicable taxes and
relevant bank charges.
e. The bank shall invest customer’s funds deposited in the savings account
in accordance with the absolute mudaraba provisions on the basis of
average monthly balance available in the savings account.
f. The bank will not warrant the mudaraba funds and the profit amount
unless in cases of bank’s negligence, infringement or otherwise violation of
these special terms and conditions.
g. Savings account shall be subject to the minimum balance requirement
as set by the management of the bank and if the balance in the savings
account on any day during the month falls below this minimum
requirement then the entire balance shall not participate in the investment
during the month.
h. The bank may establish an equalization fund, if required such fund shall
be funded, held and disbursed only upon instruction and prior approval of
the Shari’ah Supervisory Board of the bank.
17.3 FMA- Fixed Maturity Account
a) The customer shall select a fixed period(or such periods approved by
the bank) provided that the minimum term of the FMA will be one (1)
calendar month or as otherwise determined by the bank from time to time
b) The bank shall issue acknowledgement of receipt/renewal of the FMA
to the customer in such a manner as the bank, in its sole and absolute
discretion, deems fit in the customer’s favour.
c) The bank may establish an equalization fund, if required. Such fund shall
be funded, held and disbursed only upon instruction and prior approval of
the Shari’ah Supervisory Board of the bank.
18. Liability
This section sets out the extent of your liability to us and our liability to
you.
Your liability
18.1 You are responsible for payment of any debt that arises on your
account.
18.2 We will not be liable to you for any loss you incur in respect of a
payment not authorised by you in accordance with these Terms, or an
incorrect payment, unless you notify us without undue delay on becoming
aware of such unauthorised or incorrect payment and in any event no later
than 3 months after the date that your account was debited.
18.3 We will not be liable for failing to make a payment or making an
incorrect payment where you provide incorrect or incomplete payment
details.
18.4 We will not be liable for any loss you incur if we decline to act
following a request for supplementary documentation and information in
order to comply with our due diligence obligations as required under the
Applicable Regulations, and such documentation and information is not
forthcoming.
19. Insurance on certain Account holders
We may insure Customers of selected accounts types subject to the
Customer;
19.1 making an application to become that selected account holder;
19.2 maintaining an active accounts; and
19.3 maintaining a credit balance throughout.
20. Events outside our control
20.1 In the event of any failure, interruption or delay in performance of our
obligations resulting from acts, events or circumstances not reasonably
within our control, including but not limited to industrial disputes, acts or
regulations of any governmental or supranational bodies or authorities,
breakdown, failure or malfunction of any telecommunications or computer
services, we shall not be liable or have any responsibility of any kind for any
loss or damage incurred or suffered by you as a result
21. Miscellaneous
21.1 The Customer authorizes the Bank to set-off any credit balance to
which the Customer is entitled on any Account with the Bank in
satisfaction of any sum due and payable by the Customer to the Bank. For
this purpose, the Customer authorises the Bank to purchase, with the
moneys standing to the credit of any such Account, such other currencies
as may be necessary to effect such application.
21.2 The Customer hereby authorize the Bank to rely on and act, without
any liability on the Bank’s part, upon all instructions issued or purported to
be issued by the Customer and to accept the same as correct, accurate
and duly authorized by the Customer.
21.3 To help the Bank improve the Bank services the Bank may record or
monitor phone calls.
21.4 The Bank may from time to time change the conditions, products or
services that the Bank offers and the Bank may also introduce new
products and services for the benefit of its Customers. The Bank will keep
the Customer informed of any such developments.
21.5 From time to time, the Bank may decide not to exercise some of the
Bank rights provided by these conditions, or the Bank may give the
Customer additional time to comply with them. If the Bank does so, the
Bank will still be able to require the Customer to comply strictly with the
conditions on a later occasion.
21.6 These Terms and Conditions are not enforceable on a person who is
not a Customer. The Customer’s statutory rights are not affected by
anything described in these conditions.
21.7 The Bank may transfer all or any of the Bank rights in relation to the
Customer’s Account. The Bank may also transfer any of its obligations but
only to someone the Bank considers reasonable and capable of performing
them to the same standard as the Bank. All references to the Bank in these
conditions, special conditions and any other relevant conditions would
then be read as references to the person to whom any relevant right or
obligations the Bank has transferred, the Customer further agrees not to
transfer any of the Customer’s rights or obligations in relation to the
Customer’s Account.
21.8 Death/mental incapacity of the Customer
The Bank shall not be liable to act on any instructions given unless duly
confirmed letters of administration are availed. In the case of mental
incapacity of a Customer, a court order appointing a guardian ad Litem
must be availed for authority to operate an Account.
TERMS AND CONDITIONS FOR MOBILE BANKING
These terms and conditions apply if you have an account and wish to
subscribe to the mobile banking service and they explain our obligations to
you and your obligations to us.
22 The Service
22.1 We will provide the mobile banking service (“the Service”) to you
through your mobile phone. You must be a subscriber of a mobile service
provider with which the Bank has an agreement with for the provision of
this service for you to access the Service.
22.2 The Bank reserves the right to accept or decline any application for
the Service at its sole discretion.
22.3The Service will only be provided through the mobile service
provider(s) which, the Bank at its sole discretion may determine from time
to time. The processing of Your application and the subsequent registration
for the Service will be done within working days of submitting Your
application.
22.4 It is your sole responsibility to familiarize yourself with the operating
procedures for the Service as will be provided by the Bank upon your
registration to the Service. The Bank will not be liable for any losses
incurred as a result of your errors either of commission and/or omission.
22.5 You agree and undertake to be bound by and to comply with all of the
Procedures as may be issued by the Bank from time to time. The Bank shall
not be bound by or obliged to take any action on any instructions which do
not properly comply with the procedures and the Bank may reject such
non-compliant Instructions.
22.6 The Bank will provide you with a Personal Identification Number (PIN)
for use with this Service. You must keep this PIN secret and not disclose it.
You must take all reasonable care to prevent unauthorized or fraudulent
use of the Service. The Bank will not be held liable for any losses arising
from the unauthorized use of Your PIN.
22.7 The Provision of the Service is subject to the availability of the mobile
telephony connectivity. The Bank will not be held liable for non-delivery or
delay in delivery or wrongful delivery of the Service, as a result of the failure
of the mobile telephony connectivity.
22.8 You agree that the Bank shall not be held liable for any disputes that
may arise between you and your mobile service provider.
22.9 This Service will be provided to you as long as you are the sole
account holder of Your account(s) or have the mandate to singularly
operate the specified accounts.
22.10 The Bank will ensure as far as possible that any information supplied
to You through the Service is accurate. We shall not be liable for any error
which results in the provision of inaccurate information.
22.11 The Service will only be available in geographical regions where the
chosen mobile service provider(s) provide (s) mobile telephony
connectivity.
22.12 You undertake to keep your SIM card and cell phone safely. You must
not leave your Mobile Phone unattended or permit any person access to
your Mobile Phone in such a manner that he may use it and/or the Mobile
Banking-Service, whether with or without your consent.
22.13 You must notify the bank immediately of theft or loss of your mobile
phone/SIM Card; any unauthorized access to the Service or upon Your
discontinuation of the telephony service with Your mobile service provider,
through our Contact Centre . The Bank shall not be held liable for any
losses resulting from the loss of the SIM card and/or cell phone howsoever
caused.
22.14 The Bank reserves the right to enhance the Services at anytime
without notice to You. It is Your responsibility to keep updated with these
enhancements. The Bank will make all reasonable efforts to notify you of
any changes or updates.
22.15 The Bank reserves the right to charge a fee for the provision of the
Service and for the use of all or part of the Service. You will be notified of
these fees from time to time. You will be liable to pay the Bank for any fees
levied for the use of the Service, unless the Bank in its sole discretion has
waived such fees. By accepting these terms and conditions, you provide the
Bank with the authority to debit these fees from your account. These
charges will be reflected in your normal bank statement. The Bank reserves
the right to revise the fees chargeable for this Service from time to time.
The Bank reserves the right to terminate this Agreement in the event that
you fail to pay any fees levied for the provision of the Service.
22.16 The Bank shall not be held liable for the quality of service of the
mobile service provider and gives no warranty with respect to the quality
of service by the mobile service provider.
22.17 You must notify the Bank of any changes in Your account number,
mobile telephone number, address and any other information that may
affect Your ability to access the Service. The Bank will not be held liable for
sending information to Your mobile telephone number as contained in our
records at any given time.
Non-repudiation
22.18 Until and unless you notify the Bank otherwise, all Instructions
received by the Bank which are associated with your Mobile-Phone details
shall be deemed to have come from you and the Bank shall be entitled to
rely on such Instructions, whether they actually originated from you or not.
You acknowledge that the Bank may not be able to reverse or annul any
transaction executed based on Instructions received prior to your notice to
the Bank.
22.19 You hereby indemnify and hold indemnified the Bank against any loss,
claim and/or damage that may arise due to negligence, fraud collusion or
violation of these Terms on Your and/or a third party’s part.
Termination
22.20 You may terminate the use of this Service through an application
form available at our branches. Such requests will be effected within five (5)
working days of receipt of the termination notice by Us. Any fees that may
be outstanding at the time of such termination will remain payable and the
Bank reserves the right to debit such fees from your account.
22.21 You will remain liable for any mobile service provider charges that
may arise from the use of this Service, as per the mobile service provider’s
terms and conditions.
22.22 Information and Instructions received from you through the Service,
will be stored by the Bank and accessed by employees of the Bank (as is
deemed necessary).
Discontinuation of the Service
22.23 The Service may be discontinued by us at our sole discretion and at
any time without prior notice to you. The Bank may also suspend the
service temporarily, without any notice to you, for upgrade, expansion,
maintenance and repair activities, or for any emergency reason as deemed
necessary.
23. Payment and or receipt of interest:
Both the Bank and the Customer hereby agree that the payment and/or
receipt of interest are against Shari’ah principles and consequently these
Terms and Conditions do not involve the payment or receipt of interest.
The Bank and the Customer further agree that neither of them will in any
proceedings against the other, claim interest from the other and both
hereby expressly waive and reject any entitlement to recover interest from
the other.
24. Governing Law
The performance under this Terms and Conditions by the Bank and The
Customer shall at all times be subject to the relevant laws and regulations
of the Republic of Kenya. The Customer and the Bank hereby agree to
submit to the exclusive jurisdiction of the Courts of Kenya.