Checks On Money Transfers Are Intensified By A New Auditing System

As part of its ongoing efforts to combat money laundering, the Central Bank of Kuwait has implemented a new auditing system requiring intensified inspections of money transfers to and from Kuwait. This move aligns with the standards set by the Financial Action Task Force (FATF), reports Al-Rai daily. The Central Bank has mandated that exchange companies under its supervision hire an impartial global auditing firm to assess compliance with Law 106/2013, which addresses money laundering and terrorist financing. The audit focuses on transactions and activities that appear unusual or lack clear, legitimate economic purposes. The auditing process must be carried out twice a year, on June 30 and December 31. The newly introduced auditing system ensures that transactions are not conducted with individuals or entities listed on international or local blacklists.

It also involves scrutinizing public benefit organizations and charitable institutions by examining a selected sample of their transactions. In addition, the audit verifies that customer information and details about the actual beneficiaries of transfers are properly collected and updated. Records of customers and their transactions must be retained for a minimum of five years. Importantly, the appointed auditor cannot be an internal auditor or affiliated with the company’s internal control team. These enhanced measures demonstrate Kuwait’s commitment to ensuring financial transparency and curbing illicit activities within its financial sector.

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