FNB Namibia freezes accounts over KYC non-compliance

 

 

The First National Bank (FNB) Namibia has started freezing the accounts of customers who fail to comply with Know Your Customer (KYC) regulations, leaving some clients frustrated over the lack of access to their funds. The move is part of the bank’s obligation to adhere to the Financial Intelligence Act and other regulatory requirements aimed at preventing financial crimes.

FNB Namibia’s spokesperson, Kirsty Watermeyer, said that freezing accounts is a last resort, implemented only after multiple attempts to reach non-compliant customers.

“We attempt to contact a customer at least three times before a KYC hold is placed on their account.”

 

 

This includes phone calls, emails, and SMS notifications,” she said. To mitigate sudden disruptions, FNB continuously runs KYC awareness campaigns through its direct channels and the media. Despite these efforts, some customers have expressed frustration, particularly those who may have missed the notifications or are unaware of the compliance process.

Watermeyer highlighted the importance of KYC compliance.

“FNB Namibia is obligated to conduct ongoing due diligence to ensure compliance with regulatory obligations. Periodic refreshes of customer information help keep these details up to date.”

Customers may be required to reconfirm personal information or submit additional documentation as part of this process.

 

 

Customers whose accounts have been frozen can have them reinstated immediately upon updating their KYC details. “If a KYC hold is put in place, it can be lifted with immediate effect once a customer’s account is compliant,” Watermeyer assured.

Namibia has been working to strengthen its financial compliance mechanisms following concerns over potential greylisting by international financial bodies. Ensuring customers are KYC-compliant is a critical part of meeting these international standards and reducing the risk of financial crimes such as money laundering and fraud.

To make the process more accessible, FNB Namibia offers several methods for customers to update their KYC information without visiting a branch. Customers can verify and update their details via online banking, the FNB app, or mobile banking by dialing 140321#.

While the bank insists that these measures are necessary to comply with legal frameworks, some customers argue that the sudden freezing of accounts—especially for those unaware of their non-compliance—can cause significant inconvenience.

As Namibia continues to tighten financial regulations, banks and customers alike will need to navigate the balance between compliance and accessibility to banking services.