Banks cannot Deduct Full Salaries of Debtors
In an official letter addressed to the Governor of the Central Bank of Kuwait, Al-Othman referred to the recent enactment of Decree-Law No. 59 of 2025, which amends certain provisions of the Civil and Commercial Procedures Law (originally issued under Decree-Law No. 38 of 1980). The amendments affect Articles 227 and 230, which pertain to the process of confiscating assets held by third parties and confirm that such seizures shall remain in effect unless lifted by the Execution Department.
Al-Othman highlighted a concerning trend where some banks have recovered from full salaries of individuals working in government ministries, private companies, and the oil sector. He emphasized that this practice violates Article 216, paragraph (z) of the Civil Procedure Code. This article states: 'Without prejudice to other applicable laws, the following may not be seized: wages and salaries, unless regulated by a special law, and even then, only up to half the amount.'
He urged the Central Bank to issue directives to all banks, instructing them to comply with the legal limits on salary seizures as stipulated in the law and related regulations. He also pointed out that enforcement reports issued by the Execution Department explicitly require banks to 'abide by the legal provisions governing salary seizures.'
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