Central Bank of Kuwait — AML/CFT Instructions No. (2/BS/IBS/507/2023) to local banks: risk study, customer due diligence, beneficial owners, PEPs, review cycles, reporting and records

Circular to all local banks of 16 February 2023 attaching Instructions No. (2/BS/IBS/507/2023) — numbered (2/RB, RBA/507/2023) in the circular — which incorporate the amendments approved by the Board of Directors on 15 February 2023 to the instructions of 14 May 2019, effective from their date.

Their items, in order: the money-laundering and terrorist-financing risk study, updated at least every two years and approved by the board; the AML/CFT policy; procedures and internal controls; customer identification; customer due diligence — verifying identity, identifying the beneficial owner and understanding the purpose of the relationship; postponed identification; refusing new customers; enhanced due diligence for high-risk customers; politically exposed persons; reduced due diligence for low risk; keeping customer information current — one year or less for high risk, two years or less for medium, three years at most for low; ongoing monitoring; ending a relationship; outsourcing; shell banks and cross-border correspondent relationships; remittances and wire transfers; new products and business practices; dealing with exchange companies; dealing with public-benefit and charitable associations; reporting suspicious transactions; record keeping for at least five years after the relationship ends; counter-terrorism requirements, including targeted financial sanctions; the compliance officer; other requirements; penalties.

The Arabic text prevails.

A bank's review cycle for its customers comes from here: one, two or three years by risk. A Kuwaiti bank's request for documents from a customer or counterparty usually traces to these items.