Regulatory Alerts2003-11-10
Central Registration System for Customers of Bounced Cheques
The Central Bank of Kuwait has established an automated central registration system requiring local banks and the Kuwait Finance House to report online daily when customer accounts are closed due to bounced cheques. The regulations mandate that accounts be closed if up to three cheques return unpaid within a year or if malice is determined, keeping customer names on the registry for one year while prohibiting new account openings or cheque book issuances. Banks must issue warning notices, secure written customer consent, maintain data secrecy, and submit semi-annual reports to enable real-time tracking of cheque default statuses across the financial sector.
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