Explainer: How Bank Safety Deposit Boxes Work

Friday, Mar 22 2019 06:18 PM

Do banks verify the contents of safe boxes?

Banks do not check the contents of safety deposit boxes. This is because since the contents are private and confidential, a client signs an indemnity document that states that should authorities find anything illicit, the person to be prosecute or held fully liable is the client and not the bank.

This is why a safety deposit is usually covered by a cash margin or deposit in case of any eventualities or penalties.

In a statement on Tuesday, Barclays Bank noted that it was against banking regulations for the client to keep counterfeit banknotes in his personal safe deposit box

"The contents of personal safe deposit boxes are not part of the bank’s deposits and are only known to the client. However, these may not include items prohibited in terms of the law," it said.

It added, "Barclays has already notified its primary regulator, the Central Bank of Kenya, and assured it that it will continue to provide active assistance to the police until the investigation is completed. Barclays takes a zero tolerance approach to all forms of criminal activity and will always assist the police and regulators in their investigations."

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Always bear in mind that the content of the boxes is private and confidential. They are only be known to the renters. Therefore, in the event of any damage, loss or tampering of the content, it will indemnify the service providers. It is a generic clause used globally (even for car park service providers).

This is an example of forbidden items for storage in any safe deposit box in Singapore:

(1) Any liquid, contraband or perishable substance; or

(2) Anything of an explosive, dangerous, offensive or hazardous nature; or

(3) Any property the possession of which is prohibited by the laws of Singapore; or

(4) Anything for an illegal or improper purpose; or

(5) Any item that may become a nuisance to the service provider, other customers or to any tenant of the building.

  - Vault@268

The comments are for the benefit of readers after digesting the contents of the article. Source article is at : https://www.nation.co.ke/news/Explainer--How-bank-safe-boxes-work/1056-5033976-dd62w9/