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Retail BankingAccount Terms and Conditions

First: General Terms and Conditions Applicable to all Accounts

The following terms and conditions apply to all types of accounts in addition to all terms and conditions relating to every specific type of accounts contained in the relevant paragraph, and other terms and conditions laid down in respect of any other services:

  1. The account shall be managed by the account holder (Customer), his representative, legal deputy or attorney. Termination of the capacity of the person who manages the account may not be challenged against the Bank unless the Bank receives a written advice to that effect.
  2. The Customer acknowledges that he is the beneficiary of the account opened in his name, and the co-holders of the joint account acknowledge that they are the beneficiaries thereof. With regard to the account opened on behalf of third parties, the account opener acknowledges that the beneficiary thereof is the person whose name is mentioned in the account opening application form, and his representation on behalf of the beneficiary is valid and true.
  3. The Customer specimen signature at the Bank shall be considered in all the Customer transactions for his accounts, opened at present or to be opened in future at the Bank, including his sub-accounts and additional accounts, and any other account that may be opened, at any time, through Internet Banking Service, unless the Bank receives from the Customer, before opening of any such account, different written instructions acceptable to the Bank in accordance with the regulations in force at the Bank. The Customer acknowledges that any sub-account or additional account opened at any time, including any account opened through Internet Banking Service, shall be subject to the present terms and conditions that govern the accounts and any amendments effected thereto in future.
  4. The Customer address set forth in this application shall be the selected place of domicile of the Customer for any correspondence or notices addressed to him by the Bank, unless the Bank receives a written notice of the change of the Customer address.
  5. The Bank books and records shall be conclusive evidence on the Customer in his dealings with the Bank. The Customer is not entitled to challenge the correctness of such books and records in any manner whatsoever, unless otherwise evidenced by the Customer.
  6. Statement of account details shall be deemed correct unless the Bank receives from the Customer a written objection thereto within fifteen days from the date of sending the statement of account to the Customer by courier or electronic mail. In event the Customer does not receive the statement of account within the agreed period, he must contact the Bank and advise it of the same; otherwise, the Customer shall be deemed to have waived the right to receive the statement of account.
  7. All accounts are subject to the approved & applied Bank tariff list. The Bank is entitled to change, cancel, add, and amend any item in its tariff list which will be in effect immediately after its circulation in the Bank branches.
  8. The Bank shall be entitled to simultaneously debit to the Customer account all expenses included in the Bank Tariff List, as well as any amounts that could have been erroneously credited to the account, and any amounts withdrawn by the Customer exceeding the account credit balance amount. In this case, such amounts shall be deemed debts on the Customer and shall have to be immediately payable. The Customer shall repay to the Bank such debt upon first demand and irrevocably and unconditionally authorizes the Bank, without prior permission from the Customer, to debit such amounts to the account and retain them from any account to the Customer with the Bank.
  9. The Customer accounts at the Bank or its branches, at present or in future, shall be deemed a security to each other, regardless of their nature or titles, and the Bank shall be entitled to make netting between these accounts for settlement of the Customer liabilities to the Bank.
  10. The Customer hereby gives the Bank an irrevocable and unconditional authorization to exchange information on him and his accounts with other banks and entities that participate in the data and information collection system established under the law No. 2 of 2001, and the Central Risk System. The Customer also authorizes the Bank to obtain from the Public Authority for Civil Information (PACI) all details on his place of residence and place of work and any changes that may be effected thereto. The Customer further authorizes the Bank to provide PACI and other concerned entities with this authorization, without any liability on the Bank, PACI or other entities referred to.
  11. The Customer acknowledges that he shall be fully responsible for and is entirely aware of the consequences that may incur to him towards third parties in respect of all deposit transactions made in his account by any person or entity, unless he denies these transactions within fifteen days from the date of receipt of a statement of account showing such transactions or from the date of his knowledge of the depositing by any other means.
  12. If the account is overdrawn for any reason, the Bank shall be entitled to claim the Customer for immediate settlement of the debit balance.
  13. It is agreed that the account shall be deemed dormant if no debit or credit transaction is carried out by the Customer or the authorized party for a period of 12 months, or any period subsequently determined by the Bank. In this case, the Bank shall be entitled to stop issuing the account statements and close the account according to the Bank applicable policy in this regard.
  14. The Bank shall be entitled to set aside all amounts transferred to the Customer account in event such transfer involves suspicious money laundering operations upon the Bank own discretion and without any liability on the part of the Bank.
  15. The Customer authorizes the Bank to collect the value of commercial papers and other banking transactions and credit the net proceeds thereof to his account in accordance with the regulations in force at the Bank.
  16. The Bank shall be entitled to close any account at any time without the need to give reasons. The Customer shall, immediately after being notified of the same, surrender to the Bank saving pass book, cheque books, credit cards, ATM cards, etc., deemed to be cancelled, and the Customer shall be responsible to settle the debit balance and all liabilities incurred on the account.
  17. Foreign currency accounts are treated as transfer accounts, in that withdrawal and deposit transactions are processed by transfers. The Bank is entitled to accept or deny cash deposits and withdrawals in these accounts without giving reasons. However, the Bank may, upon its discretion, accept cash withdrawal or deposit but with the application of Tasaruf (exchange) according to the daily exchange rates of currencies, whether the deposit or the withdrawal are made in the account currency or in another currency. Meanwhile, when making withdrawal or depositing in the same account currency through transfer, the Bank shall deposit the same amount in the account or to pay the same amount by transfer without exchange. Collected cheques shall be deposited in the same amount of cheque if they were in the same currency of the account, or at the exchange rate if the collected amount is in a currency different from the account currency and the applicable fees and expenses, if any, shall be charged.
  18. The main currency of the accounts is the Kuwaiti Dinar. The Bank may add other Arab or foreign currencies or suspend transactions in any currency traded on the accounts after the Bank circulates at its branches such suspension of trading on any Arab or foreign currency for the then existing accounts.
  19. The Bank may amend these terms and conditions, as well as the terms and conditions applicable to other accounts, including the minimum balance for opening investment accounts or setting up the minimum limit to be maintained in investment accounts, as well as the terms & conditions for use of ATM cards, at any time after the same are circulated at the Bank branches, and shall apply to the opened accounts with effect from the date of their application.
  20. The Bank may accept online applications for opening accounts and other applications decided by the Bank, provided that the Customer would attend once at least in person to the Bank to apply for opening any account and sign these terms and conditions. The Customer acknowledges also that in event of acceptance by the Bank of an online application for opening an account, he would be bound with the terms and conditions as well as the representations identified in the online application, along with these terms and conditions which he would have signed at first coming to the Bank.
  21. The terms and conditions applicable to current account shall also apply to salary, Edikhar and Al-Amel (labor) account, in that the credit balance in such accounts shall bedeemed a Qardh Hassan loan from the Customer to the Bank and thus shall not receive profits nor shall they be charged with losses, and the Bank shall pay the entire credit balance upon demand.
  22. The interpretation and application of all accounts and settlement of any dispute arises thereupon shall be subject to the applicable laws in the State of Kuwait and Kuwaiti courts shall have jurisdiction to settle any such dispute in conformity with the Islamic Shari’ah provisions.
Second: Terms and Conditions Applicable to Current Accounts and their Equivalents [↑]
  1. The credit balance in the account is deemed to be a Qardh Hasan loan, from the Customer to the Bank, payable upon the Customer demand. No profits are payable to this account nor are losses charged thereto. The Bank may invest the balances of these accounts or any portion thereof to the benefit of the Bank shareholders.
  2. The Customer withdrawals from the account shall be effected by means of cheques provided by the Bank and delivered to the Customer, or by means of any other drawing instrument that satisfies the legal conditions and be acceptable to the Bank. Withdrawals may also be made by means of ATM cards or any credit cards in accordance with the relevant terms and conditions.
  3. The Customer undertakes to maintain the cheque books delivered to him, and shall notify the Bank in the event of loss of any cheque or the entire cheque book. The Customer shall be severally liable for all direct and indirect damages that may arise from the cheque book or any cheque being in the possession of the Customer subordinates or any third party.
  4. The Bank may decline payment of cheques withdrawn against cheques under collection, unless these cheques have already been collected and the amount thereof actually credited to the Customer account at the Bank.
  5. Withdrawal from the current account shall always be within the credit balance. The Customer shall be liable for withdrawing amounts in excess of the credit balance in the account and shall repay to the Bank, upon first demand, the full debit balance.
  6. The Customer acknowledges his absolute and conclusive consent to comply with the Central Bank of Kuwait regulations in connection with closing the Customer cheque accounts and inserting his name on the list of Customers whose accounts have been closed, if three cheques withdrawn by him, or by persons he authorized, have been returned within a maximum period of one year due to insufficiency of balance, or for other reasons in accordance with any future regulations passed by the Central Bank of Kuwait. The Customer also acknowledges his prior consent to any other measures that may be taken by the Bank in this regard. The Bank may, at its absolute discretion, open another account to the Customer without cheques in lieu of the account that has been so closed, and may debit to such new account the banking facilities that were previously given on the closed account, if any. The Customer shall bear legal liabilities resulting from his issuing of such cheques without having the right to recourse against the Bank for closing his account or listing his name on the aforesaid list or any other measures the Bank may take in this regard.
  7. Withdrawal by cheques is allowed from current accounts only or other accounts equivalent in nature to the current account in terms of the contractual relation with the Customer.
  8. The Customer authorizes the Bank to debit his account with any sum he may have obtained from the Bank in the form of banking facilities of whatsoever kind, and the Customer authorizes the Bank to transfer the same to the cash margin account against the banking facilities, as security for repayment of the Customer liabilities in favor of the Bank, along with any other expenses; provided such sums shall be retained by the Bank until all obligations on the Customer toward the Bank shall be discharged. If the Customer fails to discharge these obligations upon first demand by the Bank, the Customer authorizes the Bank to offset these obligations against cash retained sums in the cash margin account against banking facilities, without reference to the Customer, and without the need to serve any notice or initiate advance actions. This authorization by the Customer is final and irrevocable unless with the Bank written consent.
Third: Terms and Conditions Applicable to Unrestricted Mudaraba-Based Investment Accounts [↑]
  1. With regard to investment accounts where the Bank invests Customers funds according to the terms and conditions of each account, the account opening application form signed by the Customer is the unrestricted Mudaraba contract with the Bank, where the Bank is the Mudareb partner and the Customer is the capital owner.
  2. The balance allocated for investment in investment accounts is the Customer capital under the Mudaraba Contract with the Bank, whereby the Customer authorizes the Bank by virtue of such contract to invest the entire account balance or part thereof in investment deals, as deemed appropriate by the Bank for the benefit of both parties (the Bank and the Customer). The Bank is entitled to receive a portion of the net realized profit, being its share as a Mudaraba partner. In case a loss is incurred in the investments, the Customer shall bear his share of the loss in proportion to his invested capital in the Mudaraba transactions.
  3. Participation in investment by cash deposits or cheques in foreign currency shall take effect after one business day from the date of deposit or the cheque collection, and for foreign currency transfers, Musharaka shall take effect after one business day from the date of posting the amount of transfer in the account.
  4. The Bank may retain a portion of the profits accrued to holders of these accounts to create the following reserves:
    • Profit rate reserve: to be retained before the Bank obtains its share as a Mudareb Partner.
    • Investment risk reserve: to be retained after the Bank obtains its share as a Mudareb Partner. The Customer herein discharges the Bank of any claim for the retained amounts in case of closure of his account with the Bank . The Bank shall severally be entitled to dispose of such amounts upon its entire discretion.
  5. The non-invested portion of the investment accounts shall be deemed current account and shall not be subject to the investment Mudaraba regulations.
Fourth: Terms and Conditions Applicable to Unrestricted Mudaraba-Based Investment Saving Accounts [↑]
  1. The minimum limit for opening investment saving accounts, the basis for computing of the credit balance, and the ratio of invested funds for computing of the profit in these investment accounts, shall be as shown in the following table:

  2. Investment Saving Accounts Particulars
    Sl Investment Saving Account Min. Bal. for Opening the Account Basis for Calculation of the A/C Balance
    1 Al-Safa Annual A/C KD 100 For the min. credit balance during the month
    2 Al-Safa Quarterly A/C KD 250 For the min. credit balance during the month
    3 Al-Tharwa Quarterly A/C KD 500 For the average monthly credit balance calculated on the daily balance during the month
    4 Al-Safa Annual FC A/C US$ 1000 or the equivalent in major foreign currency For the min. credit balance during the month
  3. Investment saving accounts shall be invested based on unrestricted Mudaraba by 60% of the account balance, and the remaining portion of the account shall be subject to the current account regulations.
  4. The Bank shall collect 40% of the net profit realized from the investment saving account in consideration of its share as a Mudareb partner, excluding Al-Safa Annual Account of which the Bank shall collect 20% of the net profit realized therefrom in consideration of its share as a Mudareb partner.
  5. The Bank may deny or accept investment deposits in the investment saving accounts and to place limits for amounts that can be deposited for investment in any of the investment accounts.
  6. Withdrawal from these accounts shall be made by using withdrawal vouchers for this purpose or by ATM cards.
  7. Cheques may not be issued on these accounts.
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