Proof of income being sought by banks from signatories to the accounts of organizations

Dear Editor,

 

Please permit me to raise the issue of requirements for signatories for opening accounts with the commercial banks with specific reference to organizations. Some commercial banks are requesting proof of income from persons who are signatories to the Bank Account of their organizations, e.g. a Club or Society, citing The Anti-Money Laundering (AML) regulations as the reason for this request. The banks are further contending that once a Chequing Account is being opened whether by an individual or an organization, proof of income of the signatories is mandatory.

The objective of this letter is to ascertain whether this is a stipulation of the AML regulations (persons who are elected by their respective organizations as signatories to their Bank Accounts must provide proof of income), or is this merely an interpretation of the AML regulations. If it is indeed a requirement then it stands to reason that only persons who are employed can be elected by their organizations as signatories to Bank Accounts. Further, this position could possibly restrict the organizations from electing their most trustworthy and efficient members as their signatories.

In addition, given that the signatories are only elected to manage the funds of the organization why should they have to provide proof of income? After all, the funds do not belong to them personally. I would be very grateful if you can assist to clarify this issue.

 

Yours faithfully,
Alfred Julien



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