Banks ready for biometric fingerprint deadline, account restrictions loom

• The Central Bank of Kuwait has directed banks to adhere to the ministerial decision regarding biometric fingerprinting and said accounts of non-compliant citizens will face restrictions in four graduated stages.

• Banking restrictions will extend to all customer accounts, including shares, funds, portfolios, and other assets managed by third parties, whether in the private or government sector.

The banks are preparing their electronic systems to implement biometric fingerprinting. This move is in anticipation of restrictions on accounts for citizens who fail to comply with the fingerprint requirement by the deadline, sources revealed to Al Rai newspaper.

Sources indicated that banks are moving towards implementing biometric fingerprinting as the extended deadline from the Ministry of Interior approaches. Citizens must complete their biometric fingerprinting by September 30, or face the suspension of all their transactions with the Ministry of Interior.

Sources stated that the Central Bank of Kuwait has directed banks to adhere to the ministerial decision regarding biometric fingerprinting. Accounts of non-compliant citizens will face restrictions in four graduated stages:

1. Sending alert messages to all affected customers, urging them to complete biometric fingerprinting within the specified deadline. This initial step is expected to start this week.
2. Stopping all electronic channels and payments for non-compliant customers by September 30. This includes suspending account balance displays, account statements, and fund transfers, effectively halting online access to balances.
3. Suspending all bank cards for national customers who have not completed fingerprinting by October 31.
4. Placing a full block on all accounts of citizens who have not complied with fingerprinting and their bank balances by December 1.

Sources indicated that the banking restrictions on customer accounts will not be limited to bank balances alone. The ban is expected to extend to all accounts held by customers in financial markets, including shares, funds, portfolios, and other assets managed by third parties, whether in the private or government sector. This means that any funds from the sale of shares, real estate, or other commercial transactions will be transferred to accounts frozen by the bank.

The sources also anticipated that installments due from customers with frozen accounts will continue to be deducted during the restriction period to pay creditors, including financiers and government benefits, if applicable.