Documents provided by clients do not match cash withdrawal process
KUWAIT CITY, March 7: The Central Bank of Kuwait has cancelled the approval by some banks of a number of receipts that were presented to them by some of their clients, reports Al-Rai daily quoting banking sources.
They explained that the Central Bank of Kuwait took that step after it realized the receipts, which indicated the way the loans were spent by clients, are fake due to which they cannot be approved. The relevant inspection teams of the Central Bank of Kuwait discovered that the documents provided by the clients do not match the cash withdrawal processes in terms of the dates or the cash amounts.
The Central Bank of Kuwait since October 2016 activated the conditions that include obligate those who apply for loans to provide a number of information including revealing the purpose for taking the loan, the way the loan will be repaid if it is not deducted from salary, and the way the loan will be spent. The applicant has to sign a pledge to present the bank with receipts and documents to prove the way the loan will be spent whenever the bank asks for them during the first year of granting the loan.
According to the sources, the Central Bank of Kuwait discovered that some debtors presented receipts to prove they withdrew the entire loan amount in a single transaction but the actual records indicate that the day of the receipt show the debtor withdrew only KD 500 from the loan amount in their bank account. The names of the violating clients will be added to the blacklist of Ci-Net (Credit Information Network) under the tagline “Uncooperative Clients”.
They will not be offered any banking facilities in the future including granting of loans. The violating clients will also not be allowed to resort to other banks if their loans have been bought, and their debts will not be rescheduled if they wanted to do so. There is no specific period for listing the violating clients in the blacklist, and it is not known if the ban on granting loans to them will continue after they repaid the loans.