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Kuwait banks take bold steps to freeze accounts, halt credit cards

This initiative coincides with relevant authorities beginning to rectify the status of individuals whose nationalities have been withdrawn across financial, administrative, and legal sectors

  • The Ministry of Interior shared civil numbers of 200 individuals with banks, at their request, whose nationalities were revoked. This supports a plan to freeze accounts and block withdrawals from ‘Visa’ and ‘MasterCard’ cards as preventive measures.

  • The banks will halt financial transfers, and balances will be seized to cover loans and obligations until legal status changes.

Bank officials have outlined approximately ten precautionary measures to be implemented in banking transactions involving individuals whose nationalities have been revoked. This includes treating them as ‘Bidoon’ with expired civil IDs, thereby reducing the risk of default in case their borrowers cease payments.

Informed sources have revealed to Al-Rai newspaper that the Ministry of Interior recently provided banks, upon their request, with the civil numbers of approximately 200 individuals whose nationalities were revoked. This was part of a plan to implement preventive measures against them, including freezing all types of accounts if any were found, and discontinuing their ability to withdraw funds from ‘Visa’ and ‘MasterCard’ cards.

This initiative coincides with relevant authorities beginning to rectify the status of individuals whose nationalities have been withdrawn across financial, administrative, and legal sectors. They are also issuing personal cards from the central agency to address the situation of illegal residents, in accordance with their legal status.

The sources reported that the procedures include allowing a request to close the account in exchange for withdrawing balances, while providing the option to negotiate repayment of any loans with a discounted rate.

Additionally, internal and external financial transfers will be stopped, and an equivalent amount from the balance will be seized against the value of the loans and any obligations. Protective measures will continue until the legal status is modified.

They indicated that future dealings with the same customer will be based on personal card data, with all possible legal measures taken to reserve guarantees corresponding to the loans in this segment. A discussion was opened about how to handle accounts with withdrawn nationalities opened in foreign branches of local banks, with adherence to the laws of each country expected.

The sources explained that the actions banks will follow form a preventive protocol to be applied until the client corrects their situation by obtaining a valid card. If this occurs, their account benefits and future banking interactions will be determined based on their updated data.



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