Arab Times, 21 April 2024: Kuwait’s Central Bank has implemented new auditing rules as part of its ongoing efforts to tackle money laundering.

They have done so in line with Financial Action Task Force or FATF standards.

The Central Bank has mandated that exchange companies it supervises hire an impartial global auditing firm to assess compliance with Kuwait Law No. 106/2013 (the Anti-money Laundering and Terrorist Financing Law).

The audit focuses on transactions and activities that appear strange or lack clear, legitimate economic purposes.

The auditing must be carried out twice a year on 30 June and 31 December. The new rules are aimed at ensuring transactions are not conducted with individuals or entities listed on international or national blacklists.

It also involves public benefit organisations and charitable institutions being investigated by a sample of their transactions being audited.

The audit also verifies 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 at least five years.

The appointed auditor cannot be an internal auditor or affiliated with the company’s internal control team.

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