Chapter 15: Accounts Operating Rules
General Rules for the Operation of Accounts
183. The operation of the accounts shall be primarily the responsibility of the Account Holder and persons authorized by the Account Holder.
184. Account holders and its authorized person can operate the accounts either passing through written instructions duly signed and stamps or through digital mean.
185. DTFCs must facilitate its customer by availing standard forms and agreements to pass written instructions to operate accounts such as Forms use to initiate, cancel and/or roll over a Term Deposit Deal or deposit or withdraw funds from General Account etc.
186. DTFCs must verify the authenticity and validity of signatures provided on the form by comparing the specimen signatures in the signature form.
187. DTFCs must verify the identity of account holder and/or authorized person at the time receiving written instructions to operate General Account by obtaining a copy of his / her identity documents.
188. DTFCs should facilitate its customers to operate their accounts remotely i.e. through digital channels. In case DTFCs provides such facility, DTFCs must ensure the account holder or its authorized person goes through dual sign-in verification process before access to view and operate the accounts are provided.
189. In addition, DTFCs must provide maker / checker functionality to the account holder relating to juristic person on its digital channels before DTFCs receives the request to process. Maker / Checker means that two different individuals are required (one to initiate the request and other to approve). Both these individuals must go through dual sign-in verification process.
190. DTFCs must NOT accept physical cash to deposit funds to or disburse cash to withdraw fund from the General Account.
191. Persons authorized to operate bank accounts of juristic persons shall be authorized by authorized individuals, which are authorized by public or private approval, such as by the Board of Directors, Partners, Employer or any person designated by the Owner or by Officials of the establishment or entity.
192. The sole purpose of the General Account is to facilitate operations of Term Deposit Accounts therefore DTFCs should not allow usage of the account for any other purpose such as making payments to third parties i.e. a payment where beneficiary is not the DTFC where General Account is held or Account Holder itself.
193. DTFCs shall not allow General Account to be used receive funds from third parties.
194. Under no circumstances, DTFCs will overdraw any General Account or any Term Deposit Account.
General Account
195. As stated in Section 1.1, the sole purpose of the General Account is to facilitate operations of Term Deposit Accounts.
Credit Entries Rules
General rules
196. General Account can ONLY be funded i.e. credited through the following operations:
i. Funds received directly from accountholder's Bank Account(s). ii. Funds received from the account holders' Term Deposit Account
Funds received directly from accountholder's Bank accounts)
197. DTFC must match the name of remitter with the name on General Account before crediting the funds to the General Account. In case of difference, DTFC must return the funds back to the remitter.
198. DTFCs must record the name of the remitter, IBAN number of the remitter and value date as part of posting the credit entry to the General Account.
199. DTFC may receive funds from multiple accountholder's bank accounts to fund a General Account. In this case, DTFC should proceed with credit the General Account provided conditions laid down in 9.2.3.1 and 9.2.3.2 are satisfied.
Funds received from the account holders' Term Deposit Account(s)
200. Upon maturity of Term Deposit Account, DTFC must credit the principle and profit amount separately to the General Account from which Term Deposit Account was funded in the first place.
201. DTFCs must record the details of the credit i.e. whether it is Principle or Profit, account number of Term Deposit Account / Term Deposit deal number, profit rate, currency, deal date, start date, maturity date and amount part of posting the credit entry to the General Deposit Account. In case of Islamic Term Deposit Account, details of underlying commodity, quantity and price sold & bought of the commodity must be recorded.
202. Upon cancellation of the Term Deposit Account, DTFC must credit principle amount only to the General Account from which Term Deposit Account was funded in the first place.
203. DTFC can credit the General Account from multiple Term Deposit Accounts (upon cancellation or maturity), provided conditions laid down in 9.2.4.1, 9.2.4.2 and 9.2.4.3 are met.
Debit Entries Rules
General Rules
204. Funds from General Account can only be withdrawn i.e. debited through the following operations:
i. Funds withdrawn by accountholder of the General Account. ii. Funds remitted to the Term Deposit Account iii. Deductible charges
205. Funds can only be withdrawn from General Account based on the instructions or agreement of the accountholder.
Funds withdrawn by accountholder of the General Account
206. From time to time accountholder may wish to withdraw the funds from General Account. Finance must remit the funds back to the same Bank account of the account holder from which General Account was initially funded i.e. the source.
207. In case, General Account was initially funded from multiple accounts belong to the accountholder, DTFCs can remit the funds back to any of the accounts from which General Account was initially funded as per the instructions or agreement of the account holder.
Transfers between General Accounts
208. If account holder have more than one General Accounts in a DTFC, then transfers between these accounts within the DTFC is permissible provided all General Accounts are held under the same name.
Term Deposit Account
209. The minimum tenor for the deposits is six months.
210. As stated in section 1.2., the purpose of the Term Deposit Account is hold the funds for an agreed period accruing profit at an agreed rate as per Term Deposit Deal, therefore a Term Deposit Account only reflects term and status of one only Term Deal.
211. Term Deposit Account must hold and record all the information relating to the terms of the related Term Deposit Deal, which should include, at the minimum, identification of Currency, Deal Capture date, Deal Trade Date, Deal Start Date, Deal Maturity Date, Days convention (30/360, Actual/360, etc.), Principle amount, Profit rate, Total profit amount at maturity and total profit amount accrued up to date of the inquiry, status of the deal (active, cancelled, matured etc.).
212. In case of Sharia Compliant Term Deposit Deal, DTFCs must hold and record the related commodity information such as, at the minimum, the identification of commodity, quantity of the commodity, selling and buying prices, names and statuses (principal / agent) of parties/broker involved etc.
213. Upon start date of Term Deposit Deal, Finance must debit Principle amount from General Amount and credit the Principle amount to Term Deposit account.
214. Upon maturity or cancellation of the Term Deposit Account, DTFCs must return the funds held in Term Deposit Accounts back to the same linked General Deposit Account.
215. DTFCs must NOT facilitate Currency Conversion or Currency Translation to its Account Holders.
Term Deposit Deal
216. DTFCs must ensure it has evidence that its Account Holders agreed to the terms of the Term Deposit Deal through a sign Term Deposit Deal Agreement.
217. DTFCs must send confirmation to its Account Holders stating all terms of the Term Deposit Deal and ensure its Account holder agrees to terms through signing and having account holders seal on the confirmation.