Chapter 11: Payment Account

Question 1

Balance directly available

Answer 1

Money in a payment account can be spent immediately

Due to this, Bank does not pay high interest or any interest on this

Question 2

Third party access

Answer 2

Account holder has control of the account

Controls who else has access or who can diposit

Question 3

Debit balance

Answer 3

Bank only carries out payment if there is enough balance
Can arrange an overdraft agreement for a fee

Question 4

Opening a payment account

Answer 4

General procedure:
1. Inventory
2. ID and verification
3. Customer profile
4. Register name
5. Current account agreement
6. Banking conditions
7. Product conditions

Question 5

Inventory procedure

Answer 5

Identify needs of the customer:
* Joint account or individual
* People with power of attorney
* Credit facility need
* Payment account options e.g. bank statements
* Are you switching from another bank

Question 6

ID and verification

Answer 6

Bank must ask for proof of identity (money laundering and terrorist financing prevention act)
* Dutch id (passport or ID card)
* Verfiy identity matches e.g. documents/physical features/signature
* Check with the VSI system for stolen identities

Question 7

Secondary identification

Answer 7

When another bank carries out verification

Question 8

Customer profile / risk profile

Answer 8

Bank checks for risks to the bank e.g. money laundering

Bank creates a risk profile using registration systems:
* internal profile of previous incidents
* external reference application (fraud activity database)
* Bureau for Credit Registration

Question 9

Registered name on the account

Answer 9

Only a single name on the account
* If person is unable to take care of account (e.g. illness) then power of attorney can be given for management only (e.g. make payments)
* Death of account holder = frozen account and “heirs of” will be added

Question 10

Current account agreement

Answer 10

After previous procedures, agreement is signed = legal relationship

Question 11

General Banking Conditions

Answer 11

The banking conditions (ABV) are issued to the customer
* obligation of due care (customer interests)
* Customer / representatives must provide signature upon request
* Complaints procedure
* written notice from either party to close account

Question 12

Product conditions

Answer 12

Product conditions apply to certain products and services
e.g. Loan or savings account will have additional conditions to supplement ABV

Question 13

Opening savings account

Answer 13

similar to payment account

Main difference = customer must nominate an existing payment account to act as the “contra account” for transfers