Banks freeze accounts of those who failed to amend status after nationality withdrawal

Kuwaiti banks have received official instructions to freeze the accounts of individuals whose nationalities were withdrawn under Article 8 of the Kuwaiti Nationality Law and who failed to amend their residency status within the deadline set by the Ministry of Interior, which ended on August 31.

According to informed sources, a complete “block” has been placed on all banking transactions of those who did not take the necessary steps to regularize their situation or prove seriousness in doing so, reports Al-Rai daily.

This includes female beneficiaries who missed the deadline to retain the privileges granted to them under the “Kuwaiti treatment” program.

The sources explained that the freeze covers all banking activities, effectively preventing affected customers from conducting withdrawals, deposits, or any other financial operations.

The measures include the deactivation of all bank cards, freezing of account balances, suspension of deposits and loans, disabling of electronic channels and payments, and blocking of online account services. As a result, customers cannot view account balances, access statements, or transfer funds between accounts.

Checks issued against frozen accounts are not being accepted, and affected clients are unable to purchase shares or engage in stock market transactions.

The freeze also extends beyond bank accounts to include financial market holdings such as stocks, investment funds, and portfolios managed by private or governmental institutions. Proceeds from the sale of real estate or other commercial assets will also be directed to these frozen accounts.

Sources noted that banks’ electronic systems were instructed to restrict a specific list of clients. However, certain limited transactions are still permitted, such as the receipt of end-of-service benefits or other financial entitlements, as well as internal and external fund transfers—provided that the customer’s information is up-to-date with the bank.

Additionally, installment deductions will continue during the restriction period for outstanding government dues or bank loan repayments, particularly when the frozen account is held with the creditor bank.

The Ministry of Interior reaffirmed the importance of following up on procedures to amend the status of those whose nationalities were withdrawn. It emphasized that the concerned authorities remain committed to facilitating the regularization process and ensuring continued access to the benefits provided under the “Kuwaiti treatment” framework.