Local Banks Apply Certain Controls To Regulate Donation Transactions

Local banks follow procedures and apply certain controls to regulate Ramadan donation transactions, which are carried out in the form of remittances for the purpose of charity, reports Al-Anba daily quoting sources. Sources said the undisclosed banks are using a certain mechanism to process donation transactions; and this requires putting the amount donated, deduction period per month or year, name of recipient, account number and International Bank Account Number (IBAN).

Sources disclosed the procedures followed in processing donation transactions differ from one bank to another; but all of them are as per the instructions of the Central Bank of Kuwait (CBK). Sources pointed out that Kuwait prohibits the collection of liquid funds in order to monitor the source of funds and impose collection of donations through banks. Sources said the supervisory authorities in the country placed strict controls over remittances under the name of charitable donation. Sources also stressed the need to provide information about the beneficiary of the remittance in a bid to ease procedures for monitoring suspicious transactions.

Sources said the donor must be present at the bank, instead of carrying out the transaction online through e-remittance or smart banking applications. In a related development, a source from the banking sector disclosed there are illegal transactions carried out through social media, advertisements or even the collection of donations on the streets.

He added the spread of these illegal activities has prompted the supervisory bodies to put controls and form inspection teams to ensure the validity of banking operations related to the collection of donations.

It is worth mentioning that Kuwait has denied more than once the allegation of a local non-governmental organization (NGO) that it is supporting terrorism and financing armed groups in Iraq and Syria.

The source went on to say that the country formed three inspections teams to monitor the collection of donations this year in a bid to uncover violations and irregularities in coordination with the concerned ministries.

The sources disclosed one of these teams are in charge of monitoring and removing violations in markets and commercial complexes, another team has been given the authority to arrest individuals who enter the country on visit visa to collect donations, and the third team is in charge of monitoring the collection of donations through the piggybank system or collection of clothes and food in addition to ensuring adoption of financial deduction bonds.

 

SOURCE : ARABTIMES

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