Kuwait banks freeze accounts of individuals missing residency deadline

KUWAIT CITY: Banks in Kuwait have begun freezing the accounts of individuals whose Kuwaiti nationality was revoked under Article 8 of the Nationality Law and who failed to regularize their residency status before the Ministry of Interior’s August 31 deadline.

According to The Times Kuwait, the freeze affects all financial services, particularly for female customers who missed the deadline to maintain eligibility for benefits under the “Kuwait Benefits” category.

Once an account is frozen, the customer is unable to carry out any banking transactions. The restrictions include:

• Deactivation of all bank cards
• Suspension of withdrawals and deposits
• Ineligibility for new loans or financing
• Disabling of all electronic services, including online banking and mobile applications
• Blocked access to account balances, statements, and internal transfers
• Rejection of checks linked to frozen accounts
• Suspension of investment activities, such as stock purchases or fund transactions

Extension of the freeze to investment portfolios, funds, and assets managed by private or government entities.

Any proceeds from the sale of property, stocks, or other assets will still be credited to the frozen account but will remain inaccessible to the account holder.

Limited Exceptions

Despite these restrictions, limited exceptions remain in place:

Customers may still receive end-of-service benefits or other entitlements, as well as incoming transfers from local or international accounts—provided their personal data with the bank is up to date.

Automatic deductions for government dues or loan installments will continue, particularly if the bank itself is the creditor.

The Ministry of Interior reiterated the importance of completing residency and status adjustments for those affected by nationality withdrawal, emphasizing that the measure is intended to ensure continued access to certain facilities and benefits under the “Kuwaiti treatment” framework.