Deposits Terms and Conditions

1. The deposits, subject to these terms and conditions, shall be invested according to the provisions of Shariah-complaint Mudharabah contract as well as CBK-related instructions. Mudharabah is a participation between "'Rabal-maal' (the customer)" and "Mudharib' (the Bank)".
2. The invested debit balance of the herein-stated deposit is the customer's capital in the Mudarabah contract concluded with the Bank. The customer's capital shall be divided into (KD 200) value units, provided however that the total number of value units shall not be less than (KD 2.000) throughout the tenure of the investment.
3. If the total number of units decreased to less than (10) value units during investment period, the deposit will be closed, and the amount will be transferred to the principle account.
4. By virtue of the referred to contract, the customer shall authorize the bank to invest this amount in Mudharabah transactions, as the Bank may consider appropriate for the best interest of both parties (the customer and the bank), provided however that, the Bank shall obtain pre-agreed ratio of the gained profits of %20. Nevertheless, in case of any losses, the customer shall incur his/her share of loss in proportion to his/ her capital invested in Mudharabah.
5. Profits shall be paid on quarterly basis (i.e. financial year shall be calculated on quarterly basis) for all units that have completed one full calendar month.
6. However, in case of early closure of the deposit (i.e. prior to six months), previously distributed profit(s) will be recalculated applying the last Investment Savings Account profit rate declared and adjusted from the principle amount before crediting the account.
7. The Bank shall issue a deposit receipt in favor of the holders of the herein-stated deposit, indicating the date of contract and the amount invested.
8. The holder of investment deposit or his/her authorized representative, who may have the right to dispose thereof, shall have the right to redeem the deposit amount following termination.
9. The deposit receipt shall be issued in the name of the deposit holder. However, such ownership may not be assigned or transferred to any other individual whatsoever.
10. The funds of investment deposit shall be invested on the basis of absolute Mudharabah, invested on the first day of the consecutive month. Therefore, the Bank shall have the right to act thereupon as it may deem appropriate for mutual benefit of both parties, and this includes the methods and domains of investment.
11. Upon realization of investment profits, it shall be credited to the specified account.
12. Investment deposit amount shall be invested on the first day of the month at an investment percentage of %70. The Bank shall have the right to amend this percentage upon notifying the customer via any method as the Bank deems appropriate. However, if the customer didn't object to such amendment within two weeks, it shall be deemed valid effective
13. Pursuant to the law No2013/106 concerning measures against Money laundering and financing of terrorism and it's executive regulatory and Central Bank of Kuwait rules and regulations and appendix thereof, the customer shall assume responsibility of any deposit transactions into his/their account by any other person or institution unless rejected by the customer within forty-eight hours effective deposit notification. The customer declares that he/she is the beneficiary of opening the account.
14. The customer shall provide the documents and forms showing his/their tax position of the customer and any other documents the bank asks according to US FATCA law and its amendment, and when the customer doesn't respond or refuse to provide the required documents, the bank has the absolute authority to close the customer account and end the relationship with the customer without any liability on the bank that might result from closing the account.