How An Expat Can Secure His Money Before Exiting Kuwait

When planning to exit Kuwait, especially for expatriates who expect to receive payments such as indemnity, MEW deposit, or other benefits after their departure, it's crucial to strategize the collection of these funds to avoid any financial losses. Based on the shared experience and advice, here's a detailed guide on how to secure your money before exiting Kuwait, with actionable steps and examples to illustrate the process.

Understand Bank Account Operations Post-Exit

Firstly, it’s essential to understand how your bank account operates after you cancel your residence in Kuwait. The account remains active until the expiry of your Civil ID (CID), allowing for online transactions and ATM withdrawals if you provide your ATM card to a trusted friend or relative. However, post-CID expiry, the account transitions to a state where deposits are allowed, but withdrawals are not, essentially freezing your funds.

Key Steps:

1. Check CID Expiry: Before planning your exit, check the expiry date of your Civil ID. This date becomes crucial as your bank account remains fully operational until then.

2. Plan Your Exit Strategically: Aim to leave Kuwait at least 4 months before your CID expires. This gap provides a buffer for receiving any pending payments like indemnity or deposits directly into your bank account.

3. Appoint a Trusted Representative: Draft a power of attorney in favor of a reliable person (a relative or a trustworthy friend) whose residence in Kuwait will continue. This legal document should grant them the authority to manage your bank account fully, including withdrawals, after you've left Kuwait.

Case Examples and Lessons Learned

Example 1: Successful Collection of Indemnity

A healthcare professional, before leaving Kuwait, prepared a power of attorney for a colleague, granting them complete operational control over their bank account. Despite leaving Kuwait, the professional successfully received their indemnity a year later, thanks to the proactive legal and banking arrangements made prior to their departure.

Example 2: Loss Due to Restricted Power of Attorney

In another case, an individual granted a power of attorney limited to withdrawal rights to a cousin. However, when the bank deducted 900 KD for unspecified reasons, and the cousin sought clarification, it was revealed that the power of attorney did not include rights to access account statements or query transactions. This limitation led to an inability to contest or understand the bank's actions fully.

Example 3: Forfeited MEW Deposit

An expatriate lost 125 KD of their MEW deposit because they were unaware that their bank account would become non-operational for withdrawals post-CID expiry. This loss underscores the importance of timely action and awareness of banking rules.

Actionable Advice:

• Legal Documentation: When preparing a power of attorney, ensure it grants comprehensive control over your bank account to prevent any limitations on account management. Consult with a legal professional to draft this document accurately.
• Bank Consultation: Before finalizing any legal documents, consult with your bank to understand their specific requirements and procedures for power of attorney, ensuring all actions taken are in line with banking policies.
• Monitor Transactions: If possible, monitor your bank account online and stay in communication with your appointed representative to keep track of any incoming payments or unexpected deductions.

Conclusion

Exiting Kuwait requires careful financial planning to ensure you do not lose out on money rightfully owed to you. By understanding the operational status of your bank account post-exit, planning your departure date wisely, and setting up a legally sound and comprehensive power of attorney, you can safeguard your assets. Always seek professional advice when dealing with legal documents and banking procedures to navigate this process effectively.

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