Banking freeze for non-biometric expatriates commences January 1

• The Central Bank of Kuwait has directed banks to implement biometric fingerprinting for customers, with non-Kuwaiti accounts facing gradual restrictions in four phases throughout December.

• The ban will extend to all customer accounts in financial markets, including shares, funds, and assets, with proceeds from sales transferred to frozen accounts of non-compliant customers.

• Banks are preparing their electronic systems to impose restrictions on the accounts of resident and non-Kuwaiti customers who fail to complete the biometric fingerprint process within the given deadline, ending this month.

This December mirrors the events of last October, both marking months of gradual enforcement for customers not registered biometrically. These steps include warnings of partial restrictions on transactions, culminating in a complete freeze on balances and suspension of all banking activities, according to Al Rai newspaper.

The responsible sources revealed that banks are preparing their electronic systems to impose restrictions on the accounts of resident and non-Kuwaiti customers who fail to complete the biometric fingerprint process within the given deadline, ending this month. They indicated that the ban on violators’ accounts will be implemented gradually, following the same approach applied to Kuwaiti customers.

The sources explained that this move aligns with the Ministry of Interior’s deadline for non-Kuwaiti customers to complete their biometric registration by December 31. Starting January 1, violators will face a complete suspension of all banking transactions and account access.

The Central Bank of Kuwait has instructed banks to adhere to the ministerial decision regarding biometric fingerprinting for all customers, including violators. It is planned that non-Kuwaiti accounts will face gradual restrictions in four phases throughout December, mirroring the process applied to Kuwaiti customers last October. The banks are expected to activate the following procedures accordingly.

1. Sending alert messages: Banks will start sending warning messages next week, urging customers to complete their biometric fingerprint registration within the specified deadline. These messages will be based on data from the General Authority for Civil Information, coordinated with the Ministry of Interior, aiming to prompt late customers to complete the process. The likely message text is: “Dear customer, to ensure the continuity of your bank accounts and associated services, please fulfill the requirements for your civil ID validity by completing the biometric fingerprint procedure before the official deadline.”
2. Suspension of electronic channels: Starting December 15, banks will halt all electronic channels and related payment services for non-compliant customers. This includes disabling access to account balances, account statements, and fund transfers, effectively preventing online transactions.
3. Suspension of bank cards: All bank cards, including credit, Visa, and MasterCard, will be deactivated for resident and non-Kuwaiti customers who fail to complete biometric fingerprinting by December 31. This means violators will only be able to withdraw funds by visiting the bank until they comply.
4. Complete account restrictions: From January 1, banks will impose a full block on the accounts of violators, restricting all transactions, including withdrawals, deposits, loans, and transfers. While deposits will still flow into the account, customers will be unable to withdraw funds, even in person, until their status is corrected. This restriction is similar to cases where civil ID cards expire.

The sources stated that banking restrictions on the accounts of Kuwaiti and resident customers who fail to complete biometric fingerprinting will not be limited to freezing bank balances.

The ban will also extend to all accounts held by these customers in financial markets, including shares, funds, portfolios, and other assets managed by third parties, whether in the private or government sector. Any proceeds from the sale of shares, real estate, or other commercial transactions will be transferred to the frozen accounts of non-compliant customers.

It is expected that installments due from customers with frozen accounts will still be deducted during the restriction period in favor of creditors, whether for financing obligations or government dues, as was the case with non-compliant Kuwaiti customers.

Additionally, banking actions against violators will align with the enforcement of government restrictions on non-compliant residents, including limitations on traffic-related transactions, residence renewals, and other government services.

Bank procedure timeline

• Alerts: Notifications to customers will begin next week.
• Electronic channels: Access will be closed mid-month.
• Bank cards: Suspension of cards effective December 31.
• Account block: Full account restrictions implemented on January 1.