Terms and Conditions for Long Term Deposit

1. Deposits subject to stipulations hereof shall be invested/financed pursuant to the provisions of Islamic Sharia'a and regulations decided by Central Bank of Kuwait for "Investment" / "Mudaraba" contract. "Mudaraba' is a partnership between "Rab Almal" (the Customer) and "Almudarib" (the Bank).
2. Credit balance allocated for investment in this unconditional investment/fi-nance deposit is considered Customer’s Capital for investment/finance “Mudaraba” contract with the Bank. The Customer, pursuant to such contract, authorizes the Bank to invest/finance this amount in investment/ finance “Mudaraba” operations as the Bank finds it reasonable and in the interest of both parties (The Customer & the Bank, provided the Bank gets a pre-de-fined percentage in the “Mudaraba” contract 30% of the realized profit. In case of loss, the Customer shall assume their share of loss equivalent to the capital invested in “Mudaraba” operations.
3. Unconditional fixed investment deposits shall be renewed automatically at the same tenor unless the Bank is notified at least three weeks in advance.
4. The Bank issues deposit certificates /notifications to the Customers who have unconditional fixed investment deposits indicating date of contract, amount of investment deposit, maturity date, and the tenor of such deposit.
5. Depositor may not break the investment deposit prior to the maturity date agreed upon. In case the customer wants the 3 years investment Deposit closed prior to its maturity, the following profit rules/rates will be applied:
5.1 If the deposit is prematurely closed or uplifted before completing 18 months from date of deposit or renewal, then the previously distributed profit(s) will be recalculated applying the latest investment Savings Account profit rate and adjusted from the principal amount before crediting the account.
5.2 If the deposit is prematurely closed or uplifted after completing 18 months from date of deposit or renewal, then the previously distributed profit(s) will not be recalculated (i.e. it remains unaffected). The profit for the un-paid months (i.e. months after the last profit payments) will be calculated applying the latest Investment Saving Account profit rate.
6. Customer or his/her legal representative may recall the deposit amount on the agreed upon maturity date.
7. Notification regarding investment deposit certificate shall be issued in the name of the Customer, and ownership of deposit may not be transferred in the name of another person.
8. Investment deposit funds shall be invested/financed on the basis on com-mon “Mudaraba” and the Bank may have the discretion to decide all actions taken to realize joint interest including type and form of investment/finance.
9. Returns paid for investment deposit is bi-annually (i.e fiscal bi-annual) for the Invested months.
10. Profits on investment deposits, incase realized, shall be deposited in the account.
11. Investment deposit funds shall be invested/financed on the second working day of deposit date, and pursuant to the 100%. Investment percentage.
12. Pursuant to the law No106/2013 concerning measures against money laun-dering and financing of terrorism and its executive regulator 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 to account.
13. The customer shall provide the documents and forms showing his/their tax position of the customer and any other documents the bank asks accord-ing 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 ab-solute 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.
The Bank may amend such percentages after notifying the customer using appropriate channels of communications, and in case no objection received within two weeks, then amendments shall be effective.