Central Bank instructs banks to conduct all local transactions of Bedoun residents

ATM cards renewal included even if security cards expired

KUWAIT CITY, April 4: The Central Bank of Kuwait has ordered banks to conduct all banking transactions of illegal residents (Bedoun) including the renewal of their ATM cards, even if their security cards are expired, reports Al-Rai daily quoting informed sources.

They explained that the Central Bank of Kuwait had previously sent a circular to the banks instructing to cancel the ban on banking transactions of Bedoun residents whose security cards had expired, and the residents who did not update their civil ID data, in line with the requirements of the current exceptional circumstances.

However, some clients stated they were not allowed to conduct all kinds of banking transactions, and lifting the ban is almost exclusively for withdrawals and deposits.

At that time, the banks expressed opposition to the renewal of credit cards, arguing that this step gives the Bedoun customers the authority to use them throughout the term of the card and not during the coronavirus crisis alone. This may conflict with the previously-issued supervisory instructions, including the directives of the Central System for Remedying the Status of Illegal Residents to not renew the cards except for those with valid security cards.

In this regard, the Central Bank directed banks to lift the ban on all transactions initiated by the Bedoun residents including the renewal of expired cards, but it excluded transactions of foreign transfers, as ensuring the integrity of these transactions requires valid civil ID. The Bedoun residents will be allowed to conduct only local transfers and transactions.