Kuwait banks heighten scrutiny on source, purpose of deposits

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KUWAIT CITY, Feb 1: Sources have revealed that certain banks are not only inquiring about the source of a customer’s funds but are also seeking information on the purpose behind obtaining the money. This heightened scrutiny particularly applies to checks from known parties issued by other local banks, especially when the check amounts are significant compared to the client’s usual income, reports Al-Rai daily. Banks have recently intensified their calls to customers who deposit checks into their accounts, focusing not just on the source of the check, but also questioning the reason behind receiving it. Some customers find this practice intrusive, arguing that not all financial transactions should stem from business relationships.

Several individuals have informed banks that the check amounts received are gifts, emphasizing that there is no legal prohibition on the exchange of financial gifts between individuals, especially within socially acceptable limits. Banks typically refrain from escalating such matters to the Financial Investigation Unit unless the value is exceptionally substantial and unexplained. In an effort to safeguard against money laundering and terrorist financing, local banks are now restricting the deposit of funds from exchange companies. They are only accepting deposits of specific cash levels, particularly if the amounts differ from the standard liquidity rates of these companies

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