Prohibited Activities for an Agent

An agent shall not:

  • Entre into agent banking contract with more than one bank;
  • Operate of carry out an electronic transaction when there is communication failure/error in the system;
  • Carry out a transaction when a transactional receipt or acknowledgement cannot be generated;
  • Charge customers directly any fee beyond bank’s prescribed fees;
  • Offer any type of guarantee in favor of any customer;
  • Offer banking services on its own accord (provide banking services on its own account similar to those provided by it under an agency contract) or offer services that the principal is not authorized to offer;
  • Continue with the agency business when it has a criminal record or disciplinary case involving fraud, dishonesty or any other financial impropriety;
  • Provide, render or hold itself out to be providing or rendering any financial service which is not specifically permitted in the contract;
  • Open accounts, grant loans or carry out any appraisal function for purposes of opening an account or granting of a loan or any other facility;
  • Make debit or credit transactions using cheque;
  • Transact in foreign currency;
  • Representing the bank in any means to a third party without written consent from the bank; and
  • Be run or managed by a bank’s employee or its associate.