These Terms and conditions shall form an integral part of the form of opening of the account signed by the customer (natural person or legal entity), for the purpose of opening any types of accounts and/or get the benefit of any of the services and products offered by "KUWAIT FINANCE HOUSE" (“KFH”) by any of its branches.
By signing these terms and conditions, the customer acknowledges that he/she has reviewed these terms and conditions and has obtained a copy of it and that he/she has been given a sufficient time to read these terms and conditions, understands it, agreed to be bound by and to apply it to all the types of accounts which will be opened or any service or product that the customer wishes to benefit in the bank. The Bank shall have the right at all times, to amend these terms and conditions, these amendments shall be effective after the amendment is published in accordance with the procedures followed by the bank with the new amendments.
General terms and conditions of accounts and services:
- According to the approved fees and commissions list, the Customer acknowledges that KFH has the right to impose new fees/commissions, or to fulfill or modify the existing fees/commissions or modify the terms and conditions of some or all services/products after informing the customer by any means of communication including electronic communication. The Customer, hereby, authorizes KFH to collect such fees and commissions and debit it from any of KFH accounts without the need to obtain the Customer's consent, and to notify the customer later. "KUWAIT FINANCE HOUSE" has the right to demand the customer to immediately settle the debit balance,
- This account is subject to Kuwait Finance House internal decisions, which define all accounts related to the associated operations.
- The account is considered inactive if it does not move for a year regardless of its balance, the customer has to visit personally any KFH branch in order to activate the account. KFH can activate the account to cover any obligation on the customer without the presence of the customer or their legal representative.
- The customer has the right to request the issuance of the "messenger card" in order to deposit cash and cheques in the deposit machines available at KFH banking branches.
- The account holder or his/her legal representative may close the account provided that there are no claims or obligations related to this account. In the investment accounts in case the customer wishes to close the investment account, then it will be recorded how to dispose the account’s profits of the account which will be closed and will be printed on the closure document and signed by the customer.
- The customer acknowledges that the information provided for opening the account are correct and accurate. The customer undertakes to notify KFH of any change made to the information provided and undertakes to provide any additional information required by KFH. The customer shall provide the bank with such information within a maximum period of 30 days from the date of change or from the date of the request.
- KFH shall have the right at any time and without any prior notice or objection to effect set-off between all the accounts of the account holder to settle the debts owed to KFH, and the customer agrees to consider all accounts opened in his/her name at KFH and its branches (including deposits) as an integral part and shall be deemed securing fulfillment of all the Customer’s obligations towards KFH. The natural individual customers will be notified of the set-off procedure later.
- KFH shall have the right ,immediately and without notice, to freeze all accounts of the customer and any accounts of other parties that is related to the customer account, if the customer's name is indicated on the lists issued by the sanctions committees of the Security Council or the local lists issued by the Committee for the implementation of United Nations Security Council resolutions under Chapter VII of the Charter of the United Nations on terrorism and the suppression of the Financing of Terrorism, which was formed by ministerial Decree No. 4 of 2014
- KFH shall have the right, at any time and without prior notice or objection, to close the account or accounts of the customer and its associated parties, if the customer's name is included in any lists used by KFH to inquire about the blacklisted persons, for example (OFAC list or any other lists Related).
- KFH has the right to refuse to cash a cheque drawn on the account of one of its customers, if the beneficiary of the cheque (third party beneficiary without having KFH accounts) is found to be included in any lists used by KFH to inquire about the blacklisted persons. Example (List of OFAC or any other related lists).
- KFH may not accept a cash deposit on the account of one of its customers, if the applicant's name (third party applicant, not the account holder) is included in any lists used by KFH to inquire about the blacklisted persons, for example (list OFAC or any lists Other related)
- The account holder agrees that KFH shall have the right to claim from the customer any amounts credited to his account by mistake with its obligation to pay and repay it in the manner and in the dates specified by KFH.
- The customer cannot withdraw any amount deposited in his/her account for collection until after the actual collection.
- Deposits are accepted on account in all branches in cash, or cheques drawn on the branches of KFH or local banks. The client may also use other applicable deposit methods such as transfer between accounts, or through the electronic services provided by KFH, including the comprehensive deposit machines.
- The account holder may withdraw cash from the available balance of the account, make foreign remittances, payment orders, fixed orders or transfer to another account in KFH or at local banks, or create investment deposits, or any other withdrawals by deduction from the account in accordance with the established system. The agent may, by an official Power of Attorney or a bank power of attorney issued by KFH to carry out all or some of the acts referred to in accordance with the terms referred to in the Power of Attorney within the powers granted.
- The customer can use the deposit and withdrawal methods that may be introduced when the necessary conditions are met.
- KFH has the right to refuse or to accept deposits in any account or to set limits on the amounts that can be credited to the account.
- Any modification or correction on the restrictions signed by the responsible officer shall be deemed effective and valid, and the account holder may not claim the value of the erroneous deposits in his or her account and he /she will authorize KFH to make and record all correction restrictions on the account.
- KFH is not legally responsible for any error unless it is proved that it is the result of negligence.
- The relationship between the account holder and KFH shall be governed by the provisions of the laws in force in the State of Kuwait and without contradiction to the provisions of the Islamic Sharia‘a and in accordance with the provisions of KFH.
- The investment deposits at KFH will be renewed automatically unless one of the parties notifies the other party not to renew before 7 working days of the expiry date of the deposit.
- Customers authorize KFH to request the general Authority for civil information to provide legal information related to the customers and any changes that have occurred to update his/her information. without any liability to the public authority for civil information or to KFH.
- The customer acknowledges his commitment to all provisions of Law No. 106 of 2013 on combating money-laundering and the financing of terrorism, and the instructions of the supervisory authorities in this regard.
- The customer acknowledges that the name written in the account opening application is his/her real name and not symbolic, and that he/she is the primary beneficiary of the account to be opened and undertakes to provide the necessary information to those who delegate them in dealing with the account on his behalf and to submit the documents which prove the authenticity of these information.
- The customer undertakes to maintain the cheque s and shall bear the responsibility of these cheque so and its loss, theft, forgery or unlawful use.
- The customer will be provided with a debit card/pin number and shall bear the fees of the issuance of such card. The customer acknowledges that once he/she has received the debit card/envelope of the PIN that he/she is capable of using the electronic services available for KFH customers. The customer undertakes to bear all the financial and legal obligations and liabilities for using such services.
- If the debit card/ envelope of the PIN is not received within (60 days) from the date of its issuance/renewal, the customer authorizes KFH to destroy the card with a charge (issue/reissue) directly from the customer's account without his/her consent.
- In case of the loss of debit card, the account holder must inform KFH immediately to cancel and to issue a new card with new fees
- As for foreign currencies accounts:
Deposits and/or withdrawals from these accounts should be as the following:
- If the transaction was in the same currency of that account, transactions should be in the same amount.
- If the transaction was in a different currency than the currency of the account, then the “the foreign exchange rate “should apply (according to the daily exchange rate of currencies).
- If the operations are non-monetary, for example but not limited to (internal transfer, transfers and telex, deposit cheques in the account, standing orders, etc.) taking into consideration deducting any commission or expense if any in accordance with KFH approved fees list:
- With the same amount if the corresponding account is in the same foreign currency.
30- "Buy and sell" if the corresponding account is in a different foreign currency. KFH shall be entitled to close, freeze or restrict any account at any time by its sole discretion, in the event of closing the account, the available amounts (if any) will be credited to the security account.
31- The customer agrees to read and deal on his/her accounts and correspondence with KFH through electronic means of communication or telephone service as an alternative to the written correspondence unless the customer has instructions stating otherwise.
32- The customer agrees to accept the provisions of Law No. 20 of 2014 concerning electronic transactions and it’s implementing regulations in a matter not contrary to the provisions of Sharia.
33- Upon signing the agreement with KFH, the customer agrees to accept the oral approvals to complete the sale and purchase process.
34- The customer acknowledges that he/she is aware of the events that KFH may exclude the confidentiality of customer information and data, namely:
- in the events of which information is disclosed with the written consent of the client.
- in the event of which customer information must be disclosed in accordance with applicable laws and legislations within the laws and legislations in force by the regulatory authorities which KFH is subject to, including the Foreign Accounts Tax Compliance Act ““FATCA" and the common reporting standard.
35- The client irreversibly authorizes KFH to enter the account and provide the data contained in it to any relevant entity requesting it to carry out the process that the customer wishes to perform.
36- The client authorizes KFH to modify its data on the system in accordance with the official documents of the customer and authorizes KFH to address the relevant authorities in the country to request the necessary documents.
37- Kuwait Finance House is entitled to close a minor’s account (17-21 years) without notification or opposition of the customer and cancel the pre-paid card in the event that the salary or the student reward is not transferred to the account
The customer irrevocably authorizes KFH to enter the account and provide the data contained therein to any relevant entity that requires it in implementation of the process desired by the customer.
Terms and conditions for opening bank accounts
Section 1: Investment deposits
First: Conditions for calculating investment deposits
- Continuous absolute Investment deposit.
The minimum investment deposit amount is 5,000 KWD and the deposit is payable at the end of the financial year for the duration of the deposit.
- Absolute investment deposit in foreign currencies
Minimum investment deposit amount is USD 10,000 or EUR 10,000 or GBP 5,000 for an optional period of 3 months, 6 months, 9 months or 1 year
The minimum investment deposit amount is 1,000 KWD for a year, and the deposit is due at the end of the financial year for the duration of the deposit.
- Al Kawthar Investment deposit
The minimum annual deposit amount with a monthly return is 10,000 KWD and its duration is one year, and the deposit is eligible for monthly profit.
- Five-year investment deposit
The minimum annual deposit amount is 5,000 KWD and its duration are 5 years, and the deposit is payable at the end of each financial year for the duration of the deposit.
- Al Dimah Investment deposit
The minimum amount to open the account is 5,000 KWD and its duration (one month – 3/6/9/12 months), and the monthly deposit will be paid for one month's deposit, while deposits of 12, 9, 6, 3 months are paid to customers at the end of each financial quarter.
1- KFH, as a partner, will invest the funds of the investment deposits in accordance with the principle of absolute Mudaraba and the investment deposits shall be entered One day after the date of issuance for the Kuwaiti dinar, two working days of the U.S. dollar, and Euro, and three working days for other currencies unless they encounter weekly or official holidays. The start date of the investment is the first working day after the holiday and KFH is free to act in whatever it deems appropriate for the common interest, including the identification of investment methods and areas.
2- Investment deposit funds are invested on the basis of absolute Mudaraba by 90% of the continuous investment deposit and 10% treated as an Interest-Free Loan/ Qard Hassan, as for other deposits (triple investment deposit, Sidra investment deposit and Al Kawthar investment deposit are on the basis of an absolute Mudaraba contract where 70% of the amount is invested, and the remaining 30% treated as an Interest-Free Loan/ Qard Hassan, and for the five-year investment deposit, the investment rate is 100%, The investment deposits in foreign currencies invest their amounts on the basis of the absolute Mudaraba Agreement contract according to the following ratios. The remaining ratios will be treated as “Qard Hassan”: