Financial institutions pledged compliance with the stipulations set forth in Law No. 59 of 2025, as per the statement made by the Kuwait Banking Association (KBA).
In line with Law No. (59) of 2025, which amends certain articles of the Civil and Commercial Procedures Law, Kuwaiti banks have established a systematic and electronic process for seizing a debtor's funds held by third parties.
The process begins with the Judicial Execution Directorate sending executive seizure reports electronically to banks via their registered email system. These reports detail the debtor’s funds to be seized from accounts at the respective banks.
Upon receiving such a seizure report, the banks immediately freeze the relevant debtor accounts, restricting access to the specified funds. The freezing of accounts and seizure of funds remain in place until the banks receive a lifting report from the Judicial Execution Directorate, authorising the release of the frozen balances.
The Judicial Execution Directorate provides instructions on the percentages and specific amounts to be seized or frozen, and banks are mandated to comply fully with these. The Kuwait Banking Association (KBA) confirms that all member banks are fully prepared and committed to implementing these seizure provisions in accordance with the law, ensuring protection of all parties' rights involved.
Banks also maintain channels for receiving and addressing complaints and suggestions related to the seizure process to ensure transparency and legal compliance. This framework ensures that the seizure of debtor funds is carried out systematically, legally, and electronically, with oversight by the Judicial Execution Directorate to enforce court orders and protect debtor and creditor rights under the amended Civil and Commercial Procedures Law.
This commitment by banks is part of the broader efforts to uphold transparency, safeguard rights, and maintain public trust in financial and legal procedures. The implementation of this law reflects the banking sector's adherence to judicial and legal obligations.
It is important to note that banks in Kuwait are required to comply with the timeframe set by law when declaring the amount owed after receiving a seizure report. The KBA did not mention any new information about the timeframe for declaring the amount owed after receiving a seizure report.
Banks, as institutions governed by law, are obligated to comply with instructions issued by judicial and supervisory authorities efficiently and transparently. Upon receiving a seizure-lift request, banks ensure that affected accounts are released without unnecessary delay.
This article serves to clarify the process by which Kuwaiti banks implement the seizure of a debtor's funds held by third parties in accordance with Law No. (59) of 2025, ensuring a transparent, efficient, and lawful execution of court orders.
[1] Law No. (59) of 2025: Amendments to the Civil and Commercial Procedures Law (Kuwait) [2] Kuwait Banking Association: Compliance with Law No. (59) of 2025 (Official Statement)
Banks, as part of their business operations, are committed to adhering to the amendments outlined in Law No. (59) of 2025, which includes the implementation of a systematic and electronic process for seizing a debtor's funds held by third parties in the context of business finance. This process, overseen by the Judicial Execution Directorate, involves freezing debtor accounts and seizing funds, followed by the lifting of the freeze once authorized. Banks are mandated to comply fully with the instructions provided by the Judicial Execution Directorate regarding the percentages and specific amounts to be seized or frozen.
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