90 million dinars forgotten in Kuwait banks

KUWAIT CITY, Dec 24: Informed sources have disclosed that the cumulative amount of overlooked small balances in local bank accounts is approximately 90 million dinars, numbering in the thousands. It has been explained that some of these accounts start with amounts as modest as 5 dinars. Banks extend loans to companies at a more economical interest rate — 0.55 percent above the discount rate, with pricing structured for a one-year term.

   

These sources have indicated that the majority of these accounts were opened for minors, with a significant portion belonging to the accounts of individuals who are no longer residents of Kuwait.

 

 

Based on supervisory directives from the Central Bank of Kuwait, a majority of banks conducted an audit of inactive accounts in their systems, characterized by limited movements at distant intervals. The audit included an estimate of the amounts present in these accounts, clarifying that this category excludes accounts of deceased individuals.

   

Following the determination of approximately 90 million dinars in forgotten customer accounts, banks were instructed to implement stringent protective measures to secure these accounts. Notably, access to dormant accounts has been restricted to high-ranking employees, as opposed to ordinary staff, to mitigate the risk of unauthorized access or activation.

   

To address potential negative pressures stemming from these dormant accounts, some banks have adopted a new mechanism for handling neglected funds. An agreement has been reached to transfer such funds to alternative client accounts, provided they remain active. Simultaneously, a portfolio has been established to consolidate these funds into general accounts, thereby safeguarding the clients’ rights. If clients resurface in the future to assert their claims, the bank can expeditiously close these designated accounts, thereby averting operational costs.