Dear Valued Customer,
As per Central Bank of UAE, all banks are required to incorporate a set of new security features in the
monetary instruments (i.e. Check, Demand Draft, Pay order / Manager’s Check). This has been mandated
by Central Bank of UAE, in larger interest of the public, to reduce fraud, as the instruments with the new
security features are tamper proof. Checks that have been issued by Citibank from July 2008 adhere to
this mandate.
Each bank may have its own list of overt/covert security features however the minimum mandated by the
Central Bank of the UAE will be available on all of them. Some security features are easily verifiable
without the need for additional devices. Checks issued by banks now carry a warning band either on the
front or back which identifies one or more security features that is available in the instrument. Checks
issued by Citibank mentions the warning band on the reverse of the check.
The simplest form of verifying if the instrument at hand is compliant is to gently rub on the word
indicative of the instrument type, such as “CHECK” printed in thermo chromic ink the word will fade off
due to the heat and will reappear once it has cooled down.
Please find below the implementation mandates to all banks and what needs to be done by you.
- Effective March 1, 2010 banks will not accept instruments as security for finance if they don’t meet
the security features. You will need to obtain a fresh set of compliant instruments as would be
directed by the lending institution.
- If you are in possession of any post dated instruments and these are being presented on or after
January 1, 2011, you will then need to give a separate undertaking and confirm that the non
compliant instrument (if any) was received and held in your custody by you on or before March 31,
2010. Such undertaking which will be incorporated in the deposit slip will exempt you from the
requirement of obtaining new instruments from your customers and the banks from refusing to
accept such non-compliant instruments from being deposited.
- With immediate effect stop accepting instruments that are not security compliant, these
instruments will not be accepted by banks. When accepting any instrument that would need to be
later deposited at a bank for realization, verify that they are compliant with the minimum mandated
security features, by ensuring that the security features as indicated by the warning band is
available.
- If you are in possession of any undated instruments, collected and held as a security, then get them
replaced by the issuer at the earliest opportunity.
- In the event that you are holding unused instrument(s) not meeting the above security features
then, these must be carefully and securely shredded by yourself and at the same time apply for a
new check book. The new check leaves will be provided to you at the applicable cost for a standard
check book with 30 leaves as indicated in the schedule of charges.
For more information, please call our 24-hour Citiphone Banking Service on +971 4 311 4000.
We thank you for banking with us and assure you of our best services at all times.
Best Regards,
Citibank UAE
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