Restrictions Increase for Expats as Local Banks Respond to Civil ID Expiration

In light of recent policy changes, banks have started to enforce stricter regulations on expatriate customers with expired residence permits. These measures include freezing accounts or decreasing withdrawal limits as soon as the civil ID card expires.

As reported by the local Arabic publication, Al-Rai, banks implemented these measures from the first day of civil ID expiration. The rationale behind this decision is that once a customer's civil ID expires, they are considered an illegal resident, and further transactions with them would breach the law.

Expired civil IDs prevent customers from engaging in regular monetary withdrawal transactions. This limitation extends to loan disbursements, even if they were previously approved, and withdrawals from Visa and MasterCard accounts.

The account freezing process varies across banks, with some opting to freeze accounts entirely and others imposing reduced withdrawal limits. These restrictions will remain in place until the customer's residency is renewed.

For customers unable to renew their civil IDs, the option to close their accounts and withdraw the remaining balance is available, provided they submit the necessary documentation. However, the closure of an account may create difficulties in opening a new one, particularly for low-income workers, the report noted.