Lately, there have been several reports of banks demanding for family details in compliance with BNM’s requirement i.e. BNM/RH/GL 001-25 Guidelines on Credit Transaction and Exposure with Connected Parties

This is absolutely misleading.

Firstly, the BNM/RH/GL 001-25 Guidelines on Credit Transaction and Exposure with Connected Parties DOES NOT involve NUBE members.

If you look at the definition and scope of the Guideline on page 3/23 of the Guideline, it clearly states that the Guideline refers to Directors, Controlling Shareholders, Executive Officers and Officers. 

Further under paragraphs 2.1 (iii) and 2.1 (iv) of the Guideline “Officer” clearly refers to as “Executive Officer and/or an “Officer” who has the authority to appraise and/or approve credit transactions or review the status of existing credit transactions….” .  Obviously NUBE members do NOT fall in this category.

Secondly, the Guideline also provides and exemption, item 6 on page 14/23 where it states that credit facility provided as service to staff, purchase of a house for own occupation by an individual connected party or his close relatives, education of children of the connected party and facilities provided under special or compassionate circumstances is exempted.

It is very clear that NUBE members ARE NOT involved to under the Guideline. 

Therefore you are under NO obligation to provide any undertaking and/or details of connected parties in relation to BNM/RH/GL 001-25 Guidelines on Credit Transaction and Exposure with Connected Parties.

One for All & All for One

J Solomon

General Secretary