Service restrictions loom as biometric fingerprinting deadline approaches
Starting in December banks are preparing to introduce a gradual enforcement of restrictions on access to bank accounts of expatriates and non-Kuwaitis who have yet to complete their biometric fingerprinting by the deadline of 31 December.
The measured restrictions mirror the approach that banks introduced for Kuwaiti customers before the expiry of their deadline for biometric fingerprinting in October. Banks are reportedly planning to roll-out a four-step process similar to that in October for Kuwaiti customers, including warnings of partial restrictions on transactions, that will culminate in a complete freeze on balances and suspension of all banking transactions and account access starting from 1 January 2025.
The restriction process could involve:
Sending alert messages starting from next week, urging customers to complete their biometric fingerprint registration within the specified deadline. These messages will be based on data from the Public Authority for Civil Information, coordinated with the Ministry of Interior, aiming to prompt late customers to complete the biometric fingerprinting process.
Suspension of online channels: Starting from 15 December, banks will halt all online 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.
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 31 December. This means violators will only be able to withdraw funds by visiting the bank until they comply.
Complete account restrictions: From 1 January 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.
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.
Aside from banking and financial restrictions, non-compliant residents will face enforcement of restrictions on government services, iincluding limitations on traffic-related transactions, residence renewals, and other government services.
