There are banks that currently not only ask the customer about the source of his money, but also inquire from him to find out the reason for obtaining this money, and whether it came through checks from a known party and issued by another local bank, especially if the amounts included in the check are large compared to the traditional income of the client.
The banking sources indicated that banks have recently increased their calls to customers who deposited checks in their accounts, not to inquire about the source of the ‘cheque’ as it is known from a local bank, but rather about the reason for granting them this check, while this variable raised the ire of some customers, considering that not all financial transactions are supposed to result from a business relationship or even a business, reports Al-Rai daily.
The same sources indicated that more than one person informed the bank that the amount stipulated in his check resulted from a “gift” and that there is nothing in the law that criminalizes the exchange of financial gifts between individuals, especially if they are within the limits of what is socially acceptable, noting that banks usually content themselves with benefiting customers who own ‘cheques’ about the reason for granting them these amounts without the need to raise the matter to the Financial Investigation Unit, unless the value is very significant and unjustified.
As part of their measures to protect bank accounts from money laundering and terrorist financing operations, local banks have begun prohibiting the deposit of all exchange companies’ liquidity available to their accounts, and accepting the deposit of specific cash levels, especially if the additional amounts are at rates different from the usual liquidity rates for these companies.
The banking approach applies specifically to exchange entities that are not subject to the supervision of the Central Bank of Kuwait, and are active in financial transfers, as they are usually under the supervision of the Ministry of Commerce and Industry.
In this regard, relevant sources informed Al-Rai that banks are adopting a strict methodology in dealing with the “cash” of companies and exchange offices, deposited from outside the scope of major entities known for the strength and integrity of their dealings, indicating that they prohibit depositing any additional cash in the accounts of companies. Exchange offices are higher than the expected ceiling for their transactions.
This means that banks will not accept the deposit of all the amounts that money changers wish to deposit if they exceed their permissible limit, even if they justify this by saying that the increase results from an increase in the level of their traditional business in currency trading or money transfers, as part of the precautionary measures in place to combat money laundering and terrorist financing.
There are approximately 500 exchange companies in Kuwait, including only about 38 registered with the Exchange Union and subject to the supervision of the Central Bank, while the remaining entities fall under the supervision of the Ministry of Commerce and Industry, noting that banks treat the major exchange companies known for the strength and soundness of their activities, with a different accounting mechanism in depositing their liquidity. .
The sources said that each bank has a maximum limit for liquidity from each company that can be deposited into its accounts daily, weekly, or monthly, indicating that if this liquidity records a significant jump in its rates, there are banks that refuse to receive the additional margin, even if these companies report that their additional amounts result from transfers it makes in accordance with its licensed activity, and in doing so, it has taken into account the application of regulatory conditions for preventing the receipt of any cash amounts from customers that exceed 3 thousand dinars.
The sources pointed out that banks rely, in determining the deposit ceiling for each company or exchange office, on the average of their operations for a certain period, taking into account the variables that may occur in the activity of these entities in some seasons, such as tourism and travel, and the resulting additional currency activity, which is paid by a banker. By accepting increases at reasonable rates.
The sources added that what reinforces the banks’ strict position with a large segment of exchange companies is that the Central Bank prohibits these entities from accepting cash amounts from customers to pay the value of their transactions required to be executed, which exceed 3 thousand dinars, or its equivalent in foreign currency, during one day, while it allowed the payment if the customer exceeds the limit, he deducts it from the customer’s account at a bank or uses another banking method from the permitted payment tools, which means approving the procedure for dealing with cash within the regulatory limit.
Therefore, this application is supposed to reduce the levels of cash liquidity that exchange companies need to deposit, as they are not obliged to receive any “cash” that they have from their transfers at rates higher than the regulatory set.