Legal Documents

MAAL NON-INTEREST MICROFINANCE BANK LIMITED BANKING Terms and Conditions

Please read the following terms and conditions carefully. By completing and signing this form, you (the “Customer”) agree to be bound by its terms. Where the terms of the services provided by MAAL Non-Interest Microfinance Bank Limited (the “Bank”) are not specifically stated in the Terms and Conditions, they shall be regulated by customary banking practices in Nigeria and where applicable, customary non-interest Islamic banking practices.

1. NOW IT IS HEREBY MUTUALLY AGREED as follows:

1. Account Opening

   You authorise the Bank to open a banking account for you in your legal name and to conduct all necessary Know Your Customer (“KYC”) checks prior to opening the account. The Bank shall debit the account with all cost associated with conducting any KYC check. Where applicable, you authorise the Bank to debit your account with the cost of issuing a cheque, Automated Teller Machine (“ATM”) Cards (debit/credit), a token or such other instruments to enable you operate the account.

2. Use of the Account.

   the account shall be used to facilitate lawful transactions only. The Bank may suspend or close the account where it reasonably suspects that the account is being used for any fraudulent, illegitimate or unlawful purpose.

3. Basis of Relationship

   • Qard (loan) - all accounts deposits made by the Customer are received by the Bank as liabilities and represent interest-free loans from the Customer to the Bank. The Bank will keep the deposit safe or be at complete liberty to use the deposits for every lawful and Shari’ah-compliant purpose without recourse to or control from the Customer. The Bank shall be obligated to return the entire deposits or any part of it to the Customer on demand by the Customer, through the applicable channels. The account is non-compensatory in that the Customer would not receive any income on the available account balance at any given time. The Customer is also not at risk of loss of their account balance at any time under this arrangement. A Customer’s deposit is guaranteed always. Current Accounts shall be operated on this principle.
   
   
   • Mudaraba (Profit Sharing and Loss Bearing Account) -All accounts deposits made by the Customer are received by the Bank either on the basis of a restricted or unrestricted Mudaraba. The Bank will act as an entrepreneurial agent of the Customer and is authorised to pool the deposits of the Customer with that of other Customers or its own funds to invest in specific Shari’ah-Compliant business or investments (restricted Mudaraba) on behalf of the Customer or in general Shari’ah-Compliant businesses or investments (unrestricted Mudaraba). Profits from undertakings or investments are distributed between the Bank and the Customer on the basis of profit-sharing ratio which take into consideration any regulatory requirements, the tenor, amount of deposit and profit payment frequency of the account, as may be communicated by the Bank from time to time. Accordingly, deposits saved or fixed for a long period will have higher profit-sharing ratio than those saved or fixed for a short period. Accounts with frequent withdrawals or pay-outs will have lower share of the profit than those with no withdrawal or pay-out. Accounts with high deposit will have a higher share of the profit than accounts with low deposits. The Bank does not guarantee any return on the deposits. Loss is borne by the Customer and the Bank in accordance with their capital contributions in the business or investments.
   
   
   • Profit Smoothening - The Bank will put in place appropriate measures to smoothen profit that may accrue to Customers over time and take necessary permissible measures to minimize losses to Customers within the extent permissible by regulations as explained below:
     The Bank may establish a Profit Equalization Reserve (PER) to smoothen profit. PER refers to the amount appropriated out of the profit from investments before the distribution to the Rabbul-Mal (Customers) and Mudarib (the Bank). This to maintain an acceptable level of return for investment account holders.
     The Bank may establish an Investment Risk Reserve (IRR) and transfer to the reserve amounts out of the profit attributable to Customers after deducting the Bank’s share. This to cushion the effects of future investment losses on Customers (i.e. savings account holders). The IRR enables the Bank to cover, fully or partially, unexpected losses from the investments of customer’s funds.
     The customer will not have any right over these reserves and cannot request to be paid portion out of it. Where the customer benefits partially, or does not benefit at all, from the funds in the reserve, by reason of early exit from the investment accounts, the Customer donates any amount it may be entitled to from its contribution to the reserve.
     Savings and Term Deposit Accounts are operated on this principle.

4. Electronic Banking

   • General- You may access our electronic banking channels through various means including mobile number, mobile applications, internet banking, Automated Teller Machines (“ATM”) cards (credit/debit), passcode, access code, token, username and password authentication, Personal Identification Numbers (PIN), email addresses or such other secured e-channels as may be enabled by the Bank from time to time. You must carefully select your password or PIN or personal verification questions so that they cannot be easily guessed, or reverse engineered by anyone else. It is your responsibility to keep these channels private and confidential and not disclose information such as password, passcode, or PIN to anyone. A passcode may also be generated and sent to your registered mobile number or email address. It is your responsibility to keep your phone and email access secured. It is also your responsibility to use secure and private systems to access your account, phone and emails and take reasonable steps to avoid fraudulent third-party interference including through virus and hackers. If you enable Touch ID or other biometric fingerprint recognition feature to access our services, you are responsible for all access into your account. The Bank is not liable for any unauthorised access to your account caused by your negligence. If you suspect that someone else knows any of your passwords or verification questions and answers, you must change your password/PIN/verification questions or answers immediately.
   
   
   • Instructions- You acknowledge that each instruction that you provide via our e-channels is final. The Bank is not obliged to authenticate the instructions received via its secure e-channels. You will be liable for transactions that are conducted on your instructions and any losses that may arise from these transactions. You acknowledge that erroneous transactions made by you may not be reversable by the Bank and the Bank will not be liable for acting on such instructions. The Bank may, at its sole discretion, investigate any alleged erroneous or fraudulent instruction but does not accept responsibility for acting on the instruction provided that the error or fraud was not due to the Bank’s negligence.
   
   
   • Service Disruptions - Service may be disrupted due to variety of reasons including system failures, lockdowns, civil unrest, pandemic, service maintenance and upgrade. The Bank will take reasonable steps to notify you of any service disruption that is reasonably foreseeable. The Bank does not accept liability for any delay or loss suffered as a result of any service disruptions.
   
   

5. Deposits and Withdrawals

   You may make deposit into your account through our e-channels or by completing our deposit slip available in any of our branches. You may make cash deposit subject to any applicable limits and or charges. You may make cash withdrawal or transfers from your account subject to any limits imposed by us or you or any regulation. You may use a withdrawal slip or issue a cheque in favour of a third party. The Bank will take reasonable steps to authenticate signatures on a withdrawal slip or cheque and process same within customary banking period. You undertake to ensure that your account is sufficiently funded before you issue a cheque. You understand that issuance of dud cheques constitutes a criminal offence under Nigerian law and that the Bank is obligated by applicable regulations to submit details of customers who issue dud cheques to the Central Bank of Nigeria (CBN) for investigation and prosecution. We may provide such information to Credit Reference Agencies and other Credit Bureau Organisations licensed by the CBN. Where your account is insufficiently funded, unless you have a prior arrangement with the Bank, the Bank will not honour such instruction.

6. Money Laundering

   You agree to operate the account for lawful purposes only and not use the account for any illicit purposes including fraud and money laundering. You acknowledge that the Bank is bound to comply with the provisions of the Money Laundering Prohibitions Act, the Central Bank of Nigeria extant regulations (Anti-Money Laundering and Combating the Financing of Terrorism in Banks and other Financial Institutions in Nigeria) Regulations and any other relevant and applicable financial laws in on boarding customers and operating the account. You undertake to provide all relevant information and comply with all due diligence enquiries of the Bank. You understand that the Bank is required to report suspicious transactions and improper operations of account to regulatory authorities. The Bank may also be required to provide any information in relation to the operation of your account. You acknowledge that the Bank may comply with any regulatory disclosure requirement without recourse to you. You accept that the Bank is not liable for any such compliance.

7. Authentication

   You accept full responsibility for the genuineness or correctness and validity of all information provided and endorsements appearing on all Cheques, orders, bills, notes, negotiable instruments, receipts and/or other documents deposited in your account and agree to free the Bank from any responsibility for any loss or damage of funds deposited with the Bank due to any future Government order, law, tax, embargo, moratorium, exchange restriction and /or all other causes beyond the control of the Bank.

8. Joint Accounts

   • Joint and separate liability - you may apply to open an account in the names of two or more persons with some connections (e.g. spouses, family members or business partners). Each of you is individually liable and all of you are jointly liable to pay us any amounts that any of you may owe in respect of the account. The joint account holders have several and joint responsibilities and liabilities over the account irrespective of who makes deposit.
   • Notices/Statements -the Bank is not obligated to send notices or statements to all joint account holders. Any notice or statement sent to one holder will be sufficient notice or statement to all the joint holders.
   • Instructions -we would act in accordance with the signature mandate provided by the joint holders. The joint holders may authorise anyone or more of them to issue instructions on the account.
   • Death of a joint account holder - If one of the joint holders dies, the surviving account holder is under obligation to notify the Bank formally. The Bank will act in accordance with any applicable inheritance laws and upon receipt of relevant orders of court in relation to the account.

9. Corporate/Quasi-Corporate Account

   We would continue to act based on the mandate received at the inception of accounts held by companies, corporations, partnership, business name, trustees, and associations. Where there is a change in signatories, you are obliged to communicate the changes to us. We do not accept liability for honouring mandates which any changes have not been communicated to us.

10. Charges

    The Customer shall be responsible for actual costs and expenses arising from the opening of the account, including but not limited to the cost of cheque book, cheque clearing, ATM Cards (debit/credit) issuance, withdrawal charges, transaction alerts and all taxes, statutory fees, duties, and levies as may be imposed by the appropriate government authority and in case of a corporate account, the cost of corporate search. Charges are levied in accordance with the stipulated regulatory charges as stated in the Bank's standard tariff in force from time to time and copies of which are available on request. The Bank reserves the right to amend its standard tariff and notify the customers of any such change.

11. Third Party Demands

    we will comply with any lawful third party demands that we receive. We may, but do not have to, notify you that we have received a legal notice or document before we comply with it. If we incur any expenses when responding to a third-party demand or legal notice relating to your account, we may charge them to your account. We may be required by law to restrict your account. We may send any such legal notice to your last known address with us, including sending them electronically to your email. Any payment we make to a third-party claimant in good faith is a discharge of our obligations to the extent of the amount paid.

12. Combination of accounts and set-off

    we shall be entitled to consolidate and combine all accounts or related accounts you hold with us. Accordingly, if any accounts you hold with us are in credit, we may set them off against any accounts that are in debit. This includes accounts held by related parties including affiliate companies or subsidiaries (whether or not they are held in the same name) even if those accounts are held in different currencies.

13. Bank Statements

    You may generate your bank statement through your internet banking platform covering up to a limited period as may be advised by the Bank from time to time. We may also send you electronic statement automatically either monthly or at such frequency as may be communicated by the Bank. We may provide you with authenticated hard copy of your bank statement subject to such reasonable cost as may be determined by us. If you dispute any transaction on your bank statement, you should contact us within 15 days of receiving such statement. The statement shall be considered final if no communication is received from Customer within 15 days.

14. Disclosure of Accounts information

    You understand that the Bank may be under legal obligation to disclose your financial and/or credit information to regulators, credit bureau, law enforcement agencies and courts. You release the Bank from any liability for complying with such lawful orders and disclosures.

15. Indemnity

    You, your heirs, successors in title and assigns indemnify and save harmless the Bank and each of our directors, officers, custodians, agents, and employees from and against actual liabilities of any nature whatsoever (including actual expenses reasonably incurred in the defence thereof) that may at any time be incurred by any of us, or be brought against us by any person, regulatory or government authority, and that may in anyway arise out of or be connected in anyway with these Terms. If we are entitled to or make any claim under this indemnity, we may pay the claim from your account. If there are not sufficient funds in your account, you agree to personally pay the amount of the claim and we may apply monies held for you in any other amount with us or any affiliate, including joint accounts.

16. Personal information

    you consent to the collection, use and sharing of your personal information in accordance with our private policy. This includes collecting, during the course of your relationship with us, information about you, and sharing it within our related companies, credit bureaus, government institutions, regulators, self-regulatory organisation, financial institutions and such other parties as may be reasonably required for the purpose of:

    • Identifying you
    • Qualifying you (or someone you are providing a guarantee for) for products and services
    • Verifying information you give us
    • Protecting you and the Bank against error or criminal activity
    • Facilitating tax and other reporting
    • Complying with legal and regulatory obligations or
    • Telling you about other products and services

    We may communicate with you for any of these purposes by phone, text or any other electronic means or other automated system at the number and/or email you have provided us. You may withdraw your consent by notifying us through appropriate channels. You agree to hold the Bank harmless for any losses you may suffer as a result of your consent given herein.

17. Suspending, Freezing, Blocking or Terminating Use of your Account -

    We may suspend, freeze, block or terminate your right to use your account, without notice even if you are not in default of this Agreement or we have never done so in the past, if:

    • you are a victim of fraud or identity theft in order to prevent future losses;
    • required by law;
    • there is a dispute about, or it is uncertain to us, who is entitled to funds in the account;
    • we have reasonable grounds to believe that you did or may commit fraud, used or will use the account for any unlawful purpose, or caused or will cause us a loss;
    • you operate the account in an unsatisfactory manner or contrary to our policies;
    • you violate the terms of any agreement applicable to the account or any related service; or
    • We otherwise choose to.

18. Dormant Accounts -

    A dormant account shall be a bank account that has no customer or depositor originated transaction within a specified period of six years after the last customer or depositor initiated a transaction. However, such an account shall be recognised as inactive after the first six months of non-depositor or customer originated transaction in it. Accounts shall retain their profit earning status during the period of dormancy in the bank.

    The Bank shall continue to monitor accounts that show tendencies of inactivity and where necessary, initiate actions for their activation or protection from wrong usage.
    Once dormant accounts exceed a six-year period, the bank will report to the CBN along with efforts made by the bank to locate the owners or their personal representatives.
    Three months to the end of the six years, both the account holder and the next-of-kin would be notified, whereas revalidation of inactive/dormant accounts would not attract any charge to the account holder.
    Dormant account balances shall continue to be reflected in the books of the bank as deposit liabilities until they are eventually withdrawn by the account holders or disposed of on their instructions. Dormant account balances shall, therefore, be regarded as deposits and shall be covered by deposit insurance.
    In the case of government-owned inactive/dormant accounts, the bank shall notify the relevant government agency of their existence, with periodic returns of such notification sent to Banking Supervision Department. The Bank will turn over the funds to the concerned treasury after six years of inactivity.
    The account opening forms would include the provision of next-of-kin, who would be contacted at the point of declaring the accounts dormant.

19. Changing these Terms and Conditions -

    these terms may be supplemented by other terms, regulation, or policies. We may propose to change, either permanently or temporarily, any terms herein (including fees, charges or other amounts required to be paid by you under these Terms) or replace these Terms and Conditions with new terms and conditions at any time. We will give you written notice of a proposed change and any other information required by law before the change is stated to come into effect. You may refuse the change by terminating this Agreement and closing your account without cost, penalty or cancellation indemnity by notifying us within 30 days of the effective date of the change.

20. Severability

    If any part of these Terms is determined by any court of competent jurisdiction to be illegal, unenforceable or invalid, that part will be severed from these Terms and the remaining parts will continue in full force and effect.

21. Waiver

    Failure on our part to exercise any right or remedy under this Terms does not amount to waiver of those right or remedy. Accordingly, we may exercise those rights or seek those remedy at any other time.

22. Governing Law and Jurisdiction -

    Provision of Islamic commercial jurisdiction as interpreted by Central Bank of Nigeria’s Financial Regulation Advisory Council of Experts and the Laws of Federal Republic of Nigeria.

23. Shari’ah compliance and Waiver of interest -

    The Bank shall ensure that it takes all reasonable steps to ensure that the Terms herein are Shari’ah compliant at all times. The Bank will not receive or pay any interest directly or indirectly under these Terms.

24. Declaration

    I/We declare that I have read the Terms and Conditions and agree to be bound by them.