The Central Bank of Kuwait imposed financial penalties totalling more than KWD 1 million, along with written warnings and orders to take specific measures, on entities under its supervision, including a local bank, exchange companies and electronic payment and e-money service providers, according to data issued by the bank on Wednesday.
The local bank was fined KWD 55,000 for repeatedly violating a clause of the anti-money laundering and terrorism financing instructions issued on 16 February 2023.
Penalties on exchange companies ranged from KWD 40,000 to KWD 425,000, depending on the nature of the violations in each announcement, and some cases involved repeated earlier violations. The violations related to requirements on anti-money laundering, terrorism financing and the financing of the proliferation of weapons of mass destruction. They included non-compliance with clauses of the supervisory instructions issued in February 2023, as well as breaches of circulars and ministerial decisions linked to the implementation of UN Security Council resolutions.
Electronic payment and e-money service providers were covered by 4 announcements that included financial penalties, written warnings and orders to take specific measures, over violations of the anti-money laundering and terrorism financing instructions issued on 5 July 2023 and of the Central Bank's circular on the guidance for assessing business risks.
The Central Bank based the penalties on Article 15 of Law No. 106 of 2013 on combating money laundering and terrorism financing, as amended. The measures followed inspection missions to verify the entities' compliance with the relevant instructions and supervisory requirements.
The Central Bank said its supervisory and regulatory measures aim to ensure that entities under its supervision comply with approved laws, regulations and standards, preserving the transparency and integrity of the banking sector and protecting the country's financial system.
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