Kuwait Banking Association (KBA) would like to draw the attention of all local banks’ clients, as well as clients of other banks operating in the State of Kuwait, that in the near future, all banks will no longer accept processing cheques, issued in Kuwaiti Dinars, that do not conform with the standards and security features prescribed by the Central Bank of Kuwait. Banks will advise the beneficiaries of these types of cheques to visit the issuer bank to cash their cheque or deposit it in their accounts (if available with the issuer Bank).

Accordingly, KBA urge banks’ clients who print their cheques directly through press companies, and not through their bank, to print their cheques at the earliest only through authorized entities and take into consideration that they need to refer back to their bank to provide them with the mandated standards and security features before printing these cheques.

It is important to note that, in addition to the cheques conforming to the standards and security features, the following instructions are followed by all clients to facilitate the clearing of their cheques through the new Kuwait Electronic Cheque Clearing System (KECCS), in which the clearing cycle of cheques has been reduced from 3 days to the same day for certain cases or to the next working day in other cases:

• Ensure the MICR line is printed at the bottom of the cheque
• Avoid writing or signing over the MICR line
• Keep the cheques in good condition by avoiding folding, damaging, stapling or tearing them
• Avoid storing cheques in places that are warm or under direct sunlight (e.g. car) as it can damage them where they will not be accepted for processing
• Ensure the availability of sufficient funds in the account before issuing the cheques (cheques returned due to insufficient funds may lead to criminal prosecution)