Terms and Conditions – BSI-UAE

Terms and Conditions – BSI-UAE

1. Definitions

• Bank : Bank Saderat Iran, United Arab Emirates
• Customer : Any natural or legal person who has an Account with the Bank Beneficiary : Authorized recipient of any funds through Banking Services
• CBUAE : Central Bank of the United Arab Emirates
• Account : Current Account, Savings Account, Call Account, Fixed Deposit, or any other type of Account or deposit opened or maintained by the Customer with the Bank
• Banking Service : Any service provided by the Bank to the Customer in connection with banking operations

2. Introduction

In consideration of Bank Saderat Iran (hereinafter referred to as the “Bank/BSI”) which expression shall include their successors and legal assigns, agreeing to open an Account ( as hereinafter defined) to the Customer (as hereinafter defined) or the performance of any transaction or subscription to any banking services (as hereinafter defined), the Customer hereby agrees to the following terms and conditions (hereinafter referred to as the “Terms and Conditions”), in addition to any other terms and conditions issued/amended subsequently at any point of time by the Bank in relation to the Account(s) and Banking Services.

These Terms and Conditions shall apply on all the Bank Accounts of any kind opened or maintained by the Customer with the Bank and these Terms and Conditions govern all the transactions conducted through those Accounts. The Customer’s signature on the Bank’s Account opening forms and applications, subscription or usage of any Services/Product offered by the Bank and conducting of any transaction with the Bank shall constitute an acceptance to these Terms and Conditions as amended from time to time.

3. General Account Conditions

3.1 The Customer shall submit to the Bank all forms, documents, and evidence relating to the opening of an Account, as may be required by the Bank, in form and substance satisfactory to the Bank. The Bank may, at its sole discretion, refuse to open an Account without providing any reason for such refusal.

3.2 The Customer shall inform the Bank of any change in the information provided at the time of opening an Account or in any other Customer identification or due diligence documentation previously delivered to the Bank.

3.3 The Customer shall maintain a minimum balance in the Account determined by the Bank, which may vary depending on the type of Account. The Bank shall impose a fee and may refuse to process any instruction if the Customer does not meet such minimum balance requirement.

3.4 The Bank shall allocate a Business Relationship Number (BRN) to the Customer. These numbers remain the property of the Bank, which reserves the right to modify them at any time.

3.5 Cash deposits which cannot be verified immediately are accepted by the Bank on the condition that any subsequent verification shall be conclusive as to the sum deposited.

4. Savings Account

Subject to the Bank’s sole discretion and in accordance with applicable laws and regulations of the CBUAE, the Customer may open a Saving Account.

4.1 Saving Accounts can be opened by Residents as well as Non-Residents.

4.2 Business transactions are not allowed.

4.3 In accordance with the regulations of the CBUAE, cheque books shall not be issued for Savings Accounts. The Customer acknowledges and agrees that the Bank will not provide cheque facilities for any Saving Account maintained with the Bank.

4.4 Interest at the prevailing rate shall be calculated on the minimum monthly available balance and credited to the Account annually on the first day of January.

4.5 Account can be opened for minors; however, the presence of guardians is required for all banking transactions conducted on behalf of the minor.

4.6 Customers shall maintain a minimum balance as prescribed by the Bank.

5. Current Account

5.1 Subject to the Bank’s sole discretion and in compliance with applicable laws and regulations of the CBUAE, the Customer may open a Current Account, provided that the Customer is resident of the UAE. The Bank reserves the right to accept or reject any account opening application without providing reasons.

5.2 The Customer is not entitled to interest on the credit balances of the Current Account.

5.3 The Bank issues cheque book to the Customer to enable them to operate the Account. The cheque books issued will be made available for collection by the Customer or their authorized representative from the branch at which the Account is opened.

5.4 Customers shall maintain a minimum balance as prescribed by the Bank.

6. Call Deposit Account

6.1 A Call Deposit Account is an investment Account with no fixed deposit period. It provides instant access to funds and allows unlimited withdrawals and deposits. This Account type may be opened by non-residents.

6.2 Subject to the Bank’s sole discretion, the Bank may open a Call Account for the Customer.

6.3 The Customer may be entitled to earn interest on the Account at the rate determined by the Bank.

6.4 Cheque books and ATM cards are generally not issued for Call Deposit Accounts due to the nature of the Account. The Bank reserves the right to determine the issuance of such facilities in accordance with its policies and the applicable regulations of the CBUAE.

7. Qardh Al Hassaneh

7.1 A Qardh Al Hassaneh is a form of interest-free Savings Account.

7.2 This Account type shares the same features as Savings Account, except that it does not accrue any interest.

8. Joint Account

8.1 A Joint Account is an Account held in the name of two or more individuals.

8.2 The operation of the Joint Account shall be governed by the mode of operation agreed upon by the Account holders and the Bank. This may include “Jointly” (requiring all signatures) or “Either to Sign” (allowing any of holder to operate the Account), subject to the Bank’s policies and applicable regulations.

8.3 Each Customer of a Joint Account shall be jointly and severally liable to the Bank for repayment and satisfaction of all liabilities owing or incurred under the Joint Account.

8.4 SMS alerts and Statement of Account shall be provided only to the first named customer or an authorized signatory, in accordance with the terms of the account agreement.

8.5 If the Bank receives conflicting instructions from any of signatories or Customers, it reserves the right to temporarily suspend the operations of the Account, and to request a new mandate from all the signatories or Customers before giving effect on any such instructions.

8.6 The Customer agrees that any balance deposited in a Joint Account shall be held joint property on an equal basis, unless otherwise agreed in writing.

8.7 Only one ATM card shall be issued to the authorized Customer in accordance with the terms of the agreement.

9. Account of Minors

9.1 Bank shall open a Savings or Deposit Account for minors upon the signature of father or a guardian by virtue of the guardianship. The mother may also open and operate the Account on behalf of the minor provided she holds legal guardianship or presents an official authorization. The Account may be operated solely by the authorized guardian until the minor attains the age of majority (18 years old as per Civil Law No.160).

9.2 A Current Account shall not be opened in the name of a minor, in accordance with the CBUAE guidelines.

9.3 Upon reaching 18 years of age, a Customer may operate their Account with the written consent of their guardian. Upon reaching 21 years of age, the Customer may operate the Account independently, subject to providing a written consent from their guardian or court approval, and obtaining the Bank’s approval. The Bank reserves the right to suspend the account operations if the required consents are not provided within one month of the Customer reaching the applicable age.

9.4 In the event of the death of the guardian while the Customer is still a minor, the Bank immediately blocks the Account and refers the matter to the competent judicial authority. Based on the decision of the concerned authority, the Account may either be assigned to a new guardian appointed by the court, or the Account balance may be transferred to the court as directed. The Bank shall act strictly in accordance with the instructions of the competent authority.

10. Accounts of Customers with Visual or Literacy Challenge

10.1 An illiterate or visually impaired Customer shall be required to provide valid documents acceptable to the Bank. Where the Customer is unable to provide a written signature, a thumbprint may be used. In such cases, the Bank shall ensure that the terms of product or derive are clearly explained in a language understood by the Customer and an independent witness (not affiliated with the Bank) shall be present to confirm the Customer’s informed consent. The Bank will take reasonable steps to ensure that the Customer fully understands the transactions in accordance with applicable regulations.

10.2 Cheque book or ATM Card will not be issued to an illiterate or visually impaired Customer.

10.3 Withdrawals shall be permitted only upon the Customer’s personal request and verification of identity at the branch where the Account is maintained.

10.4 All transactions with the Bank must be conducted in the presence of at least two Bank employees and must be countersigned by an authorized Bank officer.

11. Term Deposit Account

11.1 A Term Deposit Account is an interest-bearing deposit Account with a fixed maturity date. Term deposits typically offer a higher rate of interest compared to standard saving accounts. This type of Account may be opened for both residents and non-residents, subject to the Bank’s policies and applicable regulations.

11.2 The Bank may issue a Certificate of Deposit as a formal agreement between the depositor and the Bank, specifying the amount deposited, maturity date, and the applicable interest rate payable on the deposit.

11.3 Any early withdrawal of a term deposit may result in a reduced interest rate and the imposition of premature withdrawal fee or penalties, in accordance with the Bank’s published Schedule of Charges and terms and conditions.

11.4 Unless otherwise instructed by the Customer, through the selection of one of the available maturity options or by any other means accepted by the Bank, on or before the maturity date, the Term Deposit may, at the Bank’s discretion, be automatically renewed for the same term at an interest rate determined by the Bank, in accordance with prevailing market rates of return in respect of such deposits.

12. Customer’s Instructions

12.1 The Bank may act on any instruction provided by the Customer, in a format and through a communication channel acceptable to the Bank, provided that the Bank has taken reasonable steps to verify the authenticity of such instruction. The Bank is authorized to debit the Customer’s Account accordingly, unless it has actual knowledge of any error, fraud, or unauthorized activity. All instructions shall be subject to the Bank’s internal policies, applicable laws, and regulatory requirements.

12.2 The Bank is not required to verify the authenticity or validity of any instruction but must take reasonable steps to authenticate the instructions as part of its security measures. If the Bank has concerns about the clarity, authenticity, or validity of any instruction, it may delay or refuse to process the instruction until confirmation is received from the Customer. The Bank will make reasonable efforts to notify the Customer promptly and resolve the issue within a reasonable time frame.

12.3 The Customer must ensure the sufficient funds are available in their Account or that alternative arrangements with the Bank are in place to cover any instructions. If sufficient funds or arrangements are not available, the Bank may, at its discretion, refuse or delay processing the instruction and may apply fees in accordance with the Bank’s Terms and Conditions.

12.4 The Bank has no obligation to process or act on any instruction, or to accept a cheque or other payment instrument if, in its sole discretion such action may result in a breach of any applicable law, regulations, or economic or trade sanctions, embargoes, or the Bank’s internal policies and procedures. In such cases, the Bank reserves the right to refuse or delay the transaction without incurring any liability. Where possible and permitted by law, the Bank will notify the Customer of reason for such refusal or delay.

12.5 The Customer is solely responsible for the accuracy and completeness of all of instructions submitted to the Bank through any approved communication channel. The Bank and its Delegates shall not be liable for any errors, omissions, delays, or interruption in the receipt or execution of such instructions, unless caused by the Bank’s gross negligence or willful misconduct.

12.6 All instructions received by the Bank shall be subject to cut-off times and daily transaction limits set by the Bank from time to time. The Bank reserves the right to revise such cut-off times and limits at its discretion. Any material changes will be communicated to the Customer through appropriate channels and shall become effective as specified in the Bank’s notification.

12.7 Once the Customer submits an instruction through any approved manual channel, the Bank may not always be able to cancel, reverse, stop payment or amend that instruction particularly if it has already been acted upon or processed by the Bank. However, if the Customer submits a request for cancellation, reversal, stop payment, or amendment within a reasonable time, and in accordance with applicable law, Bank procedures, and these Terms and Conditions, the Bank will use reasonable efforts to comply with the request. The Bank shall not be liable if it is unable to act on such request despite using such efforts.

12.8 If the Bank receives multiple payment Instructions from the same Account on the same day, the Bank reserves the right to determine the order and priority in which such payments are processed, at its sole discretion and in accordance with its internal procedures and availability of funds.

12.9 The Customer is solely responsible for the accuracy and completeness of all instructions provided to the Bank. The Bank shall not be liable for any consequences resulting from erroneous or incorrect instructions issued or purportedly issued by the Customer, except where such consequences arise due to the Bank’s gross negligence or willful misconduct. The Customer must ensure that all instructions are legible, complete, and unambiguous to avoid errors in execution.

13. Overdraft

13.1 The Customer shall not overdraw any Account without the Bank’s prior written approval. Any unauthorized Overdraft shall be subject to applicable fees and the Bank’s sole discretion regarding settlement or recovery.

13.2 If the Bank permits any Overdraft or an increase to an existing Overdraft for any reason, the overdrawn amount, together with accrued interest and any applicable charges, shall be repayable immediately upon demand by the Bank.

13.3 The Customer undertakes to pay interest on any Overdraft at the applicable interest rate specified by the Bank from time to time. Such interest shall be calculated daily on the outstanding overdraft balance on a per annum basis and debited to the Account on the last working day of each month. The Bank reserves the right to change the interest rate and will notify the Customer in accordance with applicable laws and regulations.

13.4 Any payment made by the Customer into an overdrawn Account shall, unless otherwise agreed, be applied by the Bank first toward settlement of accrued interest and other charges related to the Overdraft, and thereafter towards repayment of the principal amount of the overdraft.

13.5 Without prejudice to the foregoing provisions, the Bank shall have no obligation overdraft to occur or continue on the Customer’s Account.

13.6 In the event the Bank agrees to grant the Customer an Overdraft facility, it shall be granted solely at the Bank’s discretion, for such amount and duration as the Bank may determine, and shall be subject to any terms and conditions the Bank may impose.

13.7 If the Customer is granted an Overdraft facility, any cheque or payment instructions that would result in the account exceeding the approved Overdraft limit may be refused or returned unpaid at the Bank’s sole discretion.

14. Cheque Book

14.1 The Customer or his representative may collect cheque book from the branch at which the Account is maintained.

14.2 The Customer shall ensure that cheques are completed in a clear, legible, and secure manner so as to prevent any risk of alteration or forgery.

14.3 Cheques drawn on the Account must be completed in in either Arabic or English. The Bank reserves the right to reject or decline to process any cheque written in any other language.

14.4 The Bank shall refuse to honour any cheques presented for payment if the Customer’s current account does not have sufficient available funds and no Overdraft arrangement exists. The Bank may return such cheque unpaid and shall not be held liable for any resulting consequences.

14.5 The Bank shall be entitled to impose charges on cheques returned unpaid in accordance with applicable Schedule of Charges. If more than four Cheques are returned due to insufficient funds in the customers current account, the Bank reserves the right to close the account, recover any unused cheques, and report the incident to the CBUAE, the Al Etihad Credit Bureau, or any other competent authority, in accordance with applicable laws and regulations.

The Bank shall not be liable for any consequences arising from such actions.

14.6 The Bank reserves the right to refuse to honour any cheque which does not meet the requirements of the Bank, the CBUAE, and any applicable laws.

14.7 In accordance with the CBUAE and UAE Federal laws, The Bank shall not honour any cheque presented for payment more than six (6) months after the date stated on the cheque, as it shall be considered stale.

14.8 In the event of loss or theft of the cheque book or any cheque(s), the Customer should promptly notify the competent authorities and provide immediate notice in writing to the Bank to stop the payment of the lost or stolen cheque(s). The Customer shall bear any losses or damages arising thereof in case the Bank paid the amount of any lost cheque according to the legal and banking principles.

14.9 The Bank will only accept stop-payment instructions for cheque(s) in accordance with the applicable laws and regulations. The Bank shall not be held liable for any consequences arising from the execution or non-execution of such instructions, unless due to its gross negligence or failure to act on valid request received in accordance with its procedures.

14.10 The proceeds of any cheques or other negotiable instruments will not be available for withdrawal until the Bank has confirmed collection. The Bank reserves the right to debit any of the Customer’s Accounts or demand repayment of any amount that was mistakenly credited or provisionally credited and subsequently unpaid.

14.11 The Customer shall return all unused cheque leaves to the Bank upon closure of the Account.

15. Banker’s Draft

15.1 The Customer may request that the Bank to issue a banker’s draft payable to named beneficiary. Upon receiving such request, the Bank is authorized to debit the Customer’s Account for the full amount of the draft, provided sufficient funds are available.

15.2 A banker’s draft should be presented for payment within one (1) year from the date of issue. If not presented within this period, the Bank will treat the amount as unclaimed in accordance with its internal policies and applicable CBUAE regulations. The amount will be transferred to a designated unclaimed balances Account, and the Bank will report and the unclaimed funds to the CBUAE.

15.3 Once issued, a banker’s draft may only be cancelled at the Bank’s discretion. If the Customer wishes to cancel a banker’s draft, the original banker’s draft must be returned to the Bank prior to cancellation. The Bank shall be entitled to deduct all amounts owing to the Bank in connection with the cancellation of a banker’s draft prior to crediting the balance (if any) of the amount of the banker’s draft to the Customer’s Account.

15.4 If the Customer becomes aware that a banker’s draft has been lost or stolen, the Customer must promptly notify the Bank in writing and, where applicable, report the incident to the competent authorities. Until the Bank receives and acknowledges such notice, the Customer shall bear responsibility for any resulting loss from the presentation of the draft. Once proper notice has been given and confirmed, the Bank will act in accordance with applicable laws and its internal policies and procedures.

16. ATM Cards

16.1 ATM Card may be issued by the Bank, at its sole discretion, and subject to Bank’s terms and conditions, upon the Customer's request and in compliance with applicable laws and regulatory requirements

16.2 In the event of the ATM Card being lost or stolen, the Customer must promptly notify the Bank in writing. The Bank will issue a duplicate ATM Card subject to a fee as determined by the Bank in accordance with its Schedule of Charges.

17. Collections and Remittances

17.1 Bank cheques and negotiable instruments drawn to the order of the Customer and deposited (by such mode as shall be made available by the Bank) in the Account shall be accepted as collection items, unless agreed otherwise by the Bank and in accordance with the banking practices in the UAE. The Bank has the right to reject the cheques, drafts or any other securities drawn to the order of a third party.

17.2 Drawings against cheques under collection shall only be allowed after their actual realization. The Bank shall have the right to refuse to honor any cheque, instrument or instruction if the signature thereon or any entry, alteration or endorsement thereon is not acceptable to the Bank or if the funds available in the Account are insufficient.

17.3 The Bank shall pay the actual amount of transfers or the bank drafts/cheques received in favor of the Customer after deducting the announced banking fees/charges and commissions incurred by the Bank.

17.4 The Bank shall have the right to reject to pay for any draft or transfer if the name of the beneficiary and the Account Number does not match the Bank’s record or for any other reason.

17.5 All the transfers affected by the Bank according to the Customer’s instructions or otherwise undertaken by the Customer shall be at the Customer’s expense and responsibility, and the Bank shall not be responsible if the amounts credited to the side of the credit balance in the Customer’s accounts are lower than required due to the charges or decline in value, and the Bank shall not be responsible if the Customer was unable to avail other funds on account of any restrictions issued by the competent authorities In case the Customer wishes to pay all the bank charges on Applicant’s accounts then they should specify and authorize the Bank to debit all the relevant charges from their Account and remit to Beneficiary in full.

17.6 The Bank and its correspondents, in cases other than the negligence, infringement or otherwise violation of these Terms and Conditions, shall not liable for the consequences of any irregularity, delay, mistake, telegraphic error, omission or misinterpretation that may arise, and from and against any loss, which may be incurred through its correspondents rely to identify the persons named in the instructions or retailing the funds, should the Bank or its correspondents deem such retention expedient, pending confirmation of the identity of any person or of the above instruction by a letter or otherwise.

18. Standing Orders

18.1 The Bank shall execute any standing order instructions on behalf of the Customer only if sufficient funds are available in the designated Account on the specified execution date. The Bank shall not be held liable for any failure to process standing orders due to insufficient funds.

18.2 The Bank will not be responsible for any delays, loss in transit, transmission error or mistake caused by correspondent banks or any other third party involved in processing the standing order. Furthermore, the Bank shall bear no responsibility for any failure or delay resulting from events or circumstances beyond its reasonable control, including but not limited to system outages, communication failures, or force majeure events.

18.3 The Customer agrees to indemnify the Bank against any losses, claims, damages and expenses arising in consequence of the execution or non-execution of any standing order given by Customer and to absolve the Bank of any responsibility towards the same.

18.4 There will be a charge levied for recording, amending and executing standing orders.

19. Delegation of Authority to Operate Account

19.1 The Customer may delegate the operation of the Account to a Nominee by providing the Bank with a Power of Attorney (POA), in a form acceptable to the Bank, and subject to the Bank’s verification, KYC/AML procedures, and internal policies. The POA shall clearly specify the scope, limitations, and duration of the authority granted.

19.2 If the Customer decides to revoke the delegation of authority, the Customer must promptly notify the Bank in writing. The Customer and the Nominee shall jointly and severally indemnify and hold the Bank harmless the Bank against any liability arising out of or in connection with unauthorized transaction resulting from failure to provide timely revocation or misuse of the delegation, except to the extent the Bank is negligent, willful misconduct, or in breach of applicable law or regulation.

20. Statement of Accounts

20.1 The Bank shall provide an account statement to the Customer for each Account held with the Bank at least once per month, or at such interval as may be agreed with the Customer. The statement shall be provided free of charge (unless otherwise disclosed), in a clear and accessible format, and through the Customer’s preferred delivery channel, subject to the Bank’s capabilities.

20.2 Unless otherwise requested, monthly statements of account and transaction advices will be provided to the Customer as an online-Statement. It is the obligation of Customer to ensure the correct email address and phone number is updated in Bank’s records at all times to ensure the Statement of Account is properly received.

20.3 In circumstances where the Bank determines it is not reasonably practicable to deliver account statements to the Customer electronically, the Bank may deliver such statements of account in any manner it considers appropriate, such as by post.

20.4 The Customer must review each account statement and notify the Bank in writing of any discrepancy, errors, or unauthorized transactions within thirty (30) calendar days of receiving statement. If no such notification is received within this period, the Bank may treat the statement as accepted by the Customer for the purposes of correctness, subject to any rights the Customer may have under applicable law.

20.5 The Bank reserves the right to rectify any errors in account statements. Where such corrections materially affect the Customer’s account balance or transaction history, the Bank shall notify the Customer promptly of the correction and provide an updated statement or relevant details.

20.6 It is the Customer’s responsibility to notify the Bank if the Customer does not receive an account statement or is otherwise unable to access it within (30) calendar days of the expected delivery date. The Bank will make reasonable efforts to investigate and resolve any such issues. The Bank shall not be liable for the non-receipt of account statements caused by circumstances beyond its control, provided it has taken reasonable measures to ensure proper delivery.

21. Rates, Fees and Costs

21.1 The Customer agrees to pay all applicable fees, costs, charges and expenses of the Bank in connection with the provision of a Service. Details of such fees, costs, charges and expenses are set out in the Bank’s Schedule of Charges.

21.2 Customer is bound to pay interest and commission at the Bank’s prevailing rates at the relevant time. If any amount is due to the Bank but is not paid when due, a default rate of interest may also be chargeable. The Bank may amend any interest rate or rate of commissions at any time.

21.3 When fees, costs, charges, expenses, interest, or commissions become due, the Customer authorizes the Bank to debit any of the Customer’s Accounts with the applicable amounts as set out in the Bank’s Schedule of Charges or specified in any applicable specific conditions.

21.4 All amounts paid to the Bank are non-refundable and may not be applied as credit against or offset against other amount owed to the Bank, except where a refund is required due to an error, overcharge or in accordance with applicable laws and regulations.

21.5 The Bank shall be entitled at its sole discretion to vary the rate or method of calculation of the fees, handling charges, additional charges or the charges or fees for services. The Bank may, from time to time, revise the rates or methods of calculation for fees, handling charges, and service charges, subject to providing the Customer with at least sixty (60) days prior notice, unless a shorter period is permitted by applicable law. All such changes shall be made in accordance with applicable laws, regulations and the Bank’s Schedule of Charges.

22. Confidentiality

22.1 The Bank shall classify all confidential information of Customer as “Confidential Information”. However, the Customer expressly authorizes the Bank to disclose such Confidential Information and to obtain additional information on an going basis from third parties including but not limited to: the Etihad Credit Bureau, the Emirates Movable Collateral Registry, banks and other financial institutions, the Customer’s employer or any other relevant authority or entity the Bank deems necessary, for the purposes of assessing the Customer’s financial and non-financial standing, managing the banking relationship, ensuring regulatory compliance, and supporting credit and risk assessment processes. The Bank shall exercise reasonable care to ensure that such disclosures are made only when necessary and in accordance with applicable laws and regulations. The Customer acknowledges that such disclosures may be made without further notice.

22.2 The Customer agrees to promptly provide the Bank with any information or documents that the Bank may reasonably request in order to comply with applicable laws and regulations, including AML/CFT requirements, sanctions compliance, and customer due diligence. The Customer further acknowledges and agrees that, to the extent required or permitted by applicable law, the Bank may disclose such information to relevant regulatory or governmental authorities, without the need to obtain further consent from the Customer.

23. Inactive Accounts

23.1 The Bank reserves the right to classify and deactivate the Account as inactive if no transactions have been initiated by the Customer for a period determined by the Bank. This action is intended to safeguard the funds held in the account. At present, an Account will be considered inactive if no transactions have occurred on the account with the Bank for a period of six months.

23.2 To reactivate an Inactive Account, the Customer must contact the Bank and comply with the reactivation procedures, including providing any documents or confirmations as may be required by the Bank.

24. Dormant Accounts

24.1 An Account relationship may be classified as dormant if no transactions (other than those initiated by the Bank) have been conducted on the Account and/or the Customer has not communicated with the Bank for a continuous period specified by the Bank or required under applicable laws and regulations. At present, an Account relationship will be considered dormant if no transactions or communications have occurred on any of the Customer’s accounts or related relationships with the Bank for a period of three (3) years. The Bank reserves the right to amend this period in accordance with regulatory requirements.

24.2 The Bank will notify the Customer once the Account become dormant and inform them to provide the necessary documents in order to reactivate the Dormant Account.

24.3 If an Account is classified as dormant, the Bank reserves the right to cease the issuance of account statements for that Account until it is reactivated.

24.4 In accordance with applicable laws, regulations, and guidelines issued by the CBUAE, the Bank may be required to transfer the credit balance of a Dormant Account to be designated dormant account ledger maintained by the Bank to a central account administered by the CBUAE, as applicable. Such transfer does not affect the Customer’s right to reclaim the funds or reactivate the account, subject to submission of required documentation and compliance with applicable procedures. All interest-bearing accounts till the date of transfer shall be provided with accrued interest and upon transfer to the CBUAE the interest calculation shall be ceased.

24.5 Until the re-activation of a Dormant Account, no transactions on that Account will be processed, other than credit transactions.

25. Death, Loss of Legal Capacity or Insolvency

25.1 Upon receiving official written notice of the Customer’s death, legal incapacity, or, in the case of a company, its dissolution, the Bank shall immediately suspend all operations on the relevant Account. Account access shall remain restricted until a legal successor or authorized representative is appointed by a competent court or relevant authority, and the Bank receives the necessary documentation to this effect.

25.2 In case of the death, incapacity, insolvency or death of a Joint Account Holder(s), the surviving Joint Account Holder(s) shall inform the Bank of the same in writing immediately and not later than ten (10) days from the death or loss of legal capacity. Upon receipt of such notice, the Bank shall suspend withdrawals from the Joint Account until evidence is provided to Bank’s satisfaction that the representative of the heirs or successors of the deceased or incapacitated Joint Account Holder has been appointed in accordance with UAE laws.

26. Records and Evidence

26.1 The Bank may maintain its records electronically or by such other methods of storage as may be convenient to the Bank and that printouts or copies of all such documents stored shall be deemed as legal instruments in evidence and constitute conclusive evidence of the genuineness of the contents thereof.

27. Customer Communications

27.1 The Bank may send communications to the Customer from time to time, including service-related messages, notifications, or updates that are relevant to the Customer’s relationship with the Bank, in accordance with applicable laws and the Customer’s stated communication preferences. Where such communications are based on the Customer’s profile or transaction history, the Bank shall ensure that such processing is carried out in line with applicable data protection and privacy laws.

27.2 The Bank shall act on written instructions from the Customer or an authorized representative (such as Nominee), only if the instructions are duly signed and the signature matches the specimen signature held by the Bank.

27.3 The Bank may, in accordance with its internal policies and applicable regulations, contact the Customer using their registered contact details, including by phone or email to verify the authenticity of any instruction or communication received. If the Bank is unable to verify the authenticity of the communication after reasonable attempts, it may, at its discretion, decline to process the instruction in order to protect the Customer and the Bank from potential fraud or misuse.

28. Documentary Requirements

28.1 The Customer shall promptly provide the Bank, upon request, with any documents, information, or updates that the Bank may require in connection with the establishment, maintenance, or continuation of the banking relationship, including for purposes of compliance with applicable laws and regulations such as AML/CFT requirements.

28.2 If the Customer fails to provide requested information or documents within the timeframe specified by the Bank, the Bank may, in accordance with applicable laws, regulations, and its internal policies, suspend or terminate any or all banking services provided to the Customer.

29. Rejection of Applications

29.1 The Bank reserves the right to reject any application for product or services in accordance with applicable laws, regulations, and its internal policies, including those relating to AML, sanctions, credit risk, and customer due diligence. The Bank is not obliged to disclose the specific reason for the rejection to the applicant, particularly where such disclosure would conflict with legal or regulatory obligations.

29.2 If an application is rejected, the application form and any supporting documents provided shall become part of the Bank’s internal records and will not be returned to the applicant. These documents will be retained and processed in accordance with applicable data protection laws and the Bank’s record-retained policies under CBUAE laws and regulations.

30. Sanctions and Legal/Regulatory Compliance

30.1 The Customer represents, warrants, and undertakes that the monies used to fund the Customer’s relationship with the Bank, have not been and will not at any time be derived directly or indirectly from any unlawful or illegal activities, including but not limited to money laundering, terrorism financing, fraud, corruption, or any other criminal conduct. The Customer further undertakes that the proceeds arising from the Customer’s relationship with the Bank will not be used, directly or indirectly, to finance or support any illegal activities in any jurisdiction.

30.2 The Customer agrees to comply at all times with all applicable laws, regulations, and regulatory requirements in the UAE, including but not limited to those issued by the CBUAE, concerning AML, Counter-terrorism financing, and sanctions compliance.

30.3 The Bank may take any action it considers necessary or appropriate, including but not limited to freezing accounts, blocking transactions, closing accounts, or taking other measures it reasonably deems necessary, in order to ensure compliance with all applicable laws, regulations, and regulatory obligations in the U.A.E and Internationally, relating to the prevention of fraud, AML, terrorist financing, and the provision of financial and other services to persons subject to sanctions.

31. Freezing of the Account

31.1 The Customer agrees to indemnify and hold the Bank harmless against any actual losses, damages, liabilities, or expenses incurred by the Bank resulting from amounts blocked or frozen in compliance with applicable laws, regulations, or directives issued by the CBUAE or any authority or arising from any claim the Bank may have against the Customer.

32. Erroneous Entries

32.1 In the event any posting or accounting by the Bank, the Bank reserves the right to correct such error by processing the appropriate adjustment entries. The Customer acknowledges that amounts erroneously credited to the account do not constitute valid funds available for use, and agrees that the Bank may recover such amounts, either by debiting the account or by requesting reimbursement from the Customer. The Bank shall notify the Customer of the error and the corrective action taken. The Customer agrees to cooperate in good faith with the Bank to facilitate the rectification of such errors, including reimbursing any amounts wrongly credited, where required.

33. SMS Alerts

33.1 The Bank may, at its discretion, provide SMS alerts and other electronic messages to the Customer’s registered mobile number regarding account activity, services updates, and other relevant information. These messages may also include awareness or offers from the Bank. Messages may be transmitted on a 24-hour basis; however, the delivery of such messages depends on third party mobile service providers and system availability. The Bank shall not be liable for any non-delivery, delay, duplication, or error in the content of such messages due to service disruptions, technical failures, or factors beyond the Bank’s control, including power outages or communication network issues.

33.2 The Customer is responsible for ensuring that their mobile number registered with the Bank is accurate and up to date. The Bank shall not be liable for any consequences arising from the use of an outdated or incorrect mobile number. The Customer must promptly inform the Bank if their mobile number is changed, deactivated, or transferred.

33.3 This service is only available to customers with mobile numbers registered with mobile network operators licensed in the UAE. The Bank does not guarantee delivery of messages to international numbers or while roaming.

34. Telephone Banking

34.1 The Bank may provide the Customer with a telephone number to inquire about the Account balance and transactions related to the Account.

34.2 The Customer may apply for Telephone Banking services by completing the prescribed application form provided by the Bank. Use of the service is subject to the Bank’s verification procedures and security measures.

35. Signature Specimen

35.1 The Customers’ signature specimen registered with the Bank, shall be considered to be the basis of carrying out transactions on their accounts, and shall be valid unless modified or cancelled.

35.2 In cases where the Customer is unable to sign their documents, such as illiterate or visually impaired individuals, the Bank shall obtain a thumbprint as the Customer’s official mark. The thumbprint must be affixed in the presence of a bank officer and an independent witness. The Bank reserves the right to take additional verification measures as required under applicable laws and regulations.

36. Security

36.1 All securities, bills, deposits, bank notes, gold, shares or other properties or documents of whatever nature, which are held in the name of the Customer by the Bank in any of its branches, or which come into the possession of the Bank, shall be held as security against the Customer’s Liabilities, whether arising under these General Conditions, any Specific Conditions or any other Service or financial accommodation made available to the Customer. The Customer agrees to keep such properties and documents in the possession of the Bank as security for the Customer’s Liabilities until the Customer has discharged such Liabilities in full or unless otherwise agreed by the Bank.

36.2 The Customer agrees to take any action (including execution of any additional documents) as the Bank may specify to perfect the security interest intended to be created above or otherwise to facilitate the realization or liquidation of the assets which are (or are intended to be) the subject of a security interest.

36.3 The Customer further acknowledges and agrees that the Bank may, if it considers it desirable to do so, register the particulars of any arrangement entered into with the Customer on the Emirates Movable Collateral Registry. The Customer waives any objection to such registration.

36.4 Customer agrees that the Bank has the right to authorize any Delegate to collect any of the Customer’s Liabilities that have become due. The Customer authorizes the Bank to provide its Delegates with any information or documents pertaining to the Customer and to take the appropriate action on behalf of the Bank to collect such Liabilities. The Customer shall be liable to pay all costs of collections including legal fees.

36.5 The Customer shall not, without the Bank’s prior written approval, assign, mortgage, pledge or otherwise create any security interest or other proprietary right in favor of any third party over any amounts deposited in an Account, any rights under these General Conditions or other assets of the Customer in the possession of the Bank.

37. Indemnity and Limitation of Liability

37.1 The Customer undertakes and agrees to indemnify the Bank and hold it harmless against any loss, damage, liability, costs and expenses, whether legal or otherwise, which the Bank may incur by reason of a Product or otherwise under these Terms and Conditions including, without limitation:

• Any breach thereof by the Customer,
• Processing of standing instructions from the Customer,
• Acting on any instructions given by the Customer, or any person purportedly authorized to give instructions on behalf of the Customer, including instructions given by telephone, facsimile, or similar means,
• Any imperfection or mechanical failure within the relevant facsimile, telephone, or similar systems,
• The Customer’s use of the Bank ATM card.

37.2 Bank shall not have any liability for any indirect, incidental or consequential loss or damages (including loss of profit), even if advised of the possibility of such loss or damages.

37.3 Bank will not be responsible for any failure to perform any of its obligations if such performance would result in it being in breach of any law, regulation or other requirement of any governmental or other authority in accordance with which it is required to act or if its performance is prevented, hindered or delayed by a Force Majeure Event; in such case its obligations will be suspended for so long as the Force Majeure Event continues (and no other branch, subsidiary or affiliate shall become liable). “Force Majeure Event” means any event due to any cause beyond the reasonable control of the Bank, such as restrictions on convertibility or transferability, requisitions, involuntary transfers, unavailability of any clearing of payment system, sabotage, fire, flood, explosion, acts of God, civil com

38. CRS and FATCA Compliance

38.1 The Customer agrees that the Bank may be required to comply with the Common Reporting Standard (“CRS”) as implemented by the United Arab Emirates pursuant to the requirements of the CBUAE, the UAE Ministry of Finance and in accordance with the standards set forth by the Organization for Economic Co-operation and Development (“OECD”). Accordingly, the Bank may disclose to the UAE Ministry of Finance or any other competent authority any information relating to the Customer including but not limited to account details, tax residency status and financial or investment information, as required under applicable local or international laws and regulations.

38.2 The Customer agrees that the Bank may be required to, or may volunteer to comply with the Foreign Account Tax Compliance Act 2010 of the United States of America (“FATCA”) or any other laws and/or regulations (local or otherwise) adopted to implement FATCA in the UAE (together, the “FATCA Regime”). In such case, the Bank may be required to provide to the UAE Ministry of Finance (the “MOF”) information concerning the Customer, any accounts held by the Customer or information relating to any funds and/or investment(s) held by the Bank on behalf of the Customer. The Customer hereby irrevocably agrees to any such disclosure without further recourse or notice to the Customer.

38.3 The Customer further agrees that as part of its compliance with the FATCA Regime, the Bank may be required to withhold tax on any payments of U.S. source income, as well as gross proceeds from the sale of securities that generate U.S. source income. The Customer agrees that the Bank may transfer any such sums directly to the MOF. The Customer agrees that the Bank shall bear no liability for the determination that any funds, accounts, or investment(s) constitutes ‘U.S. source income’ and that any determination by the Bank, its officers, employees, agents or assigns, howsoever made shall be final and binding upon the Customer.

38.4 The Customer hereby agrees and undertakes to indemnify the Bank, to the fullest extent permitted under applicable law against all loss, damage and/or liability due to or arising out of the Bank’s compliance with the FATCA Regime, or with the Regulations, irrespective of the reason for any such loss, damage and/or liability.

39. Termination

39.1 Any Account or Service offered by the Bank under these General Terms and Conditions is provided at the Bank’s sole and absolute discretion and may be closed, suspended, or discontinued, in whole or in part, temporarily or permanently at any time, for any reason. The Bank shall provide the Customer with reasonable notice of such closure, suspension or termination, except where immediate action is required due to regulatory, legal, or security reasons.

39.2 Provided there are no outstanding liabilities due to the Bank, the Customer may close any Account or request termination of any Service at any time by giving the Bank prior notice. Unless otherwise agreed, the Customer shall provide the Bank with at least thirty (30) calendar days prior written notice.

39.3 Upon termination of a Service, the Bank shall have the right to:

• Require immediate settlement of Customer’s any outstanding liabilities;
• Enforce any collateral or security interest held and/or
• Retain any Customer assets in the Bank’s possession until all liabilities are irrevocably discharged, without further notice or legal action.

39.4 Upon termination of a Service, the Customer shall:

• Cancel all payments to and from any closed Accounts; and
• Return any unused cheques and destroy any ATM Card relating to closed Accounts, or return them if requested by the Bank.

39.5 Any provisions relating to disclaimers, limitations on liability, indemnities, disclosure of information, rights of retention and security over any assets, set-off and tax shall survive termination of these General Conditions.

39.6 The use of any ATM Card shall be suspended or terminated immediately upon closure or suspension of the Account or services. The Customer must immediately cease using the ATM Card and return it to the Bank upon request.

40. Closure of Account

40.1 The Bank shall agree to close an Account at the Customer’s request, subject to the Customer complying with the following conditions:

The closure request must be submitted in writing and signed by all Joint Account Holders, preferably using the Bank’s standard account closure form.

• The Customer confirms that no cheque(s) issued by them will be presented after the closure date; otherwise, the Customer shall provide a written list of any outstanding cheques yet to be presented to the Bank.
• The Customer shall return all unused cheque leaves and any unexpired ATM cards issued by the Bank for cancellation.
• The Bank reserves the right to close an Account without prior notice to the Customer under the following circumstances;

a. If four or more cheques issued by the Customer within a calendar year are returned unpaid by the Bank due to insufficient funds.

b. If the Account maintains zero balance with no transactions or activity for a period of 180 consecutive days or more, or such other period as determined by the Bank.

c. If the Account has been classified as Dormant and remains inactive for a period determined by the Bank from time to time. The Bank shall have the right to close such Dormant Accounts after providing the required notice to the Customer and transferring balance, if any, to the CBUAE in accordance with applicable regulatory requirements.

d. If the Customer fails or refuses to provide, upon the Bank’s request, any information or documentation required for the Bank to comply with applicable laws, regulations, directives, or the Bank’s internal compliance policies, including but not limited to AML, combating the financing of terrorism (CFT), tax reporting, or customer due diligence requirements.

e. If the Customer provides the Bank with false, inaccurate, incomplete, or misleading information, whether intentionally or otherwise, including during account opening or in the course of the Bank’s ongoing due diligence or compliance reviews.

f. Where the Bank considers it necessary to do so in order to comply with applicable laws and regulations, combating the financing of terrorism, fraud prevention, or to mitigate financial crime risk.

g. For any other reason which the Bank acting in good faith and in accordance with applicable laws, regulations, or its internal policies, deems necessary, including but not limited to risk management, compliance requirements, or changes to the Bank’s business strategy. Account closing charges, if applicable, shall be levied in accordance with the Bank’s approved Schedule of Charges, as published and updated from time to time, and as disclosed to the Customer in advance.

40.2 Upon closure of the Account for any of the reasons stated above, any remaining credit balance, after deducting applicable Bank charges in accordance with the Bank’s Schedule of Charges, shall be returned to the Customer. The Bank may return such funds either; in Cash (if permitted), by issuing a Cashier’s order or draft, or by transferring the amount to another account as instructed by the Customer (if possible).

40.3 The Bank shall provide the Customer prior written notice of account closure, in accordance with applicable laws and regulations, and shall include the reasons for such closure, unless doing so is prohibited by law or the closure is related to a suspected breach of applicable law, fraud, money laundering, or other financial crime. The Bank shall not be held liable for any loss or damage arising from the closure of the Account undertaken in accordance with this clause.

41. Set Off and Consolidation

41.1 In addition to any general right of set-off available to the Bank under applicable law, the Customer agrees that the Bank may, at its sole discretion and without notice, combine or consolidate all or any of the Customer’s Accounts held with the Bank, whether singly or jointly with others, in any currency and at any location. The Bank may set off or transfer any credit balances or assets held in such accounts or under the Bank’s custody in satisfaction (in whole or in part) of any amounts owed by the Customer to the Bank, whether such liabilities are actual or contingent, several or joint.

41.2 The Customer authorizes the Bank to convert any such funds at the Bank’s prevailing exchange rate at the time of set-off. This right may be exercised on one or more occasions at the discretion of the Bank. The exercise of this right shall not affect any security or collateral held by the Bank and shall be subject to applicable laws, including any limitations under UAE labor or consumer protection regulations.

42. Governing Law and Dispute Resolution

42.1 The operation of the Account(s) and all products and services provided by the Bank to the Customer, as well as these General Terms and Conditions, shall be governed by and construed in accordance with the applicable laws and regulations of the CBUAE. Where relevant, the laws of the emirate in which the Account is maintained may also apply. The provisions of the UAE Civil Transactions Law shall apply to the extend they are not inconsistent with the nature of the banking relationship or applicable commercial laws.

42.2 The civil courts of the individual emirates, the federal civil courts of the United Arab Emirates, shall have non-exclusive jurisdiction over any disputes arising in connection with these General Terms and Conditions or the Bank’s relationship with the Customer. Notwithstanding the foregoing, the Bank reserves the right to initiate proceedings in any other jurisdiction that may have legal authority over the Customer or the Customer’s assets, where it deems appropriate.

43. Suggestions & Complaints

43.1 If the Customer is unsatisfied with any product or service provided by the Bank, they may submit a complaint or suggestion through any of the following channels:

• Visiting a Bank branch and completing a complaint / suggestion form
• Submitting a complaint via the Bank’s official website: www.banksaderat.ae
• Email: businesscare@bsi.co.ae
• Call us at: +9714 6035267