Cbk Orders Kuwaitization Of Key Bank Positions

As reported by informed sources, the Central Bank of Kuwait has instructed banks to Kuwaitize the position of Director of the Anti-Money Laundering and Terrorism Financing Unit. An Al-Rai daily report underscored the importance of localizing sensitive banking jobs, including senior and middle management, and making the necessary efforts to achieve this.

Initially, the Central Bank pushed banks to present plans to adjust their situation in this regard. After the deadline was extended, it is not likely to extend past 2023. In general, the Central Bank suggested that appointments of non-Kuwaitis to leadership positions should be based on Kuwaiti competencies required to fill the positions within the framework of career development plans. Kuwaitization of such positions has already been accomplished by some banks, while others are working on it.

To localize sensitive jobs, the Central Bank reviews the banks' plans individually to ensure they make the necessary job successions. It is the second position in which the Central Bank requires banks to ensure a Kuwaiti is occupying the role of "Director of Anti-Money Laundering," after the position of Director of Strategic Planning and Follow-Up Unit. A supervisory instruction issued in January 2020 approved the establishment of an independent sector to support and follow up on the framework of work related to the banks' strategic plan. All banks have already fulfilled this requirement, and the eye is currently on risk management as well. Generally, the Anti-Money Laundering and Terrorist Financing Unit's primary role is to ensure that all transfers within the supervisory ceiling are compliant with both relevant laws and regulations, as well as internal bank policies.

In each department, an independent unit monitors the implementation of the bank's anti-money laundering policy. A direct report to the bank's chairman, it is responsible for implementing the bank's policies and procedures regarding money laundering and terrorism financing. It has been explained by sources that the Central Bank requested Kuwaitization of the position of Director of Anti-Money Laundering Unit in the banks, as part of its efforts to ensure Kuwaitis fill positions in the banking sector, especially middle and senior executives. Due to the increasing demand for jobs such as the Director of the Anti-Money Laundering Unit in Kuwait, some banks are finding it difficult to fill certain positions.

It may lead to fierce competition among them to satisfy these requirements, including courting some talents from other banks with additional financial benefits to persuade them to leave. In various sectors, all banks want to increase Kuwaitization rates, but on the ground, the obstacles to the abundance of supply cannot be ignored, especially for sensitive banking and supervisory positions. Candidates who fail to meet the requirements for some jobs are among the challenges that are difficult to overcome due to the Central Bank's requirements. Banks' options are therefore narrowed, and they are unable to replace some departments at the targeted supervisory speed. As of April 2021, the Central Bank has requested that the banks submit a plan that has been approved by their boards of directors that outlines a clear path to reaching a Kuwaitization rate of at least 70 percent in senior and middle management, and not only at the company's level, so that it clarifies the path to achieve this replacement by the end of 2023.

As part of its strategic initiative to enhance national competencies in all functional levels of the banking sector, the Central Bank has taken this step. Kuwaiti cadres are continuously being offered career opportunities, while national cadres are given priority when it comes to filling leadership positions in technical and administrative fields, and steps are taken to train and qualify them for these positions as well.

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