CBK mandates full monthly reporting of all charity fund transfers

The Central Bank of Kuwait has instructed banks and exchange companies to submit monthly reports containing detailed information on all foreign transfers — both outgoing and incoming —linked to charity and public benefit societies operating in Kuwait, regardless of the amount.

This directive, which took effect on August 10, requires reporting even if the transfer is as little as one dinar.

The data must be submitted through the Transaction Reporting System (TRS) and include the names of the sender and recipient, the country of origin or destination, the amount in Kuwaiti dinars and foreign currency, the date of the transfer, the association’s registration number, and any required approvals from the Ministry of Social Affairs or the Ministry of Foreign Affairs, reports Al-Rai daily.

Sources said the move is aimed at enhancing transparency, strengthening governance in the charity sector, and ensuring compliance with international standards, particularly in preventing money laundering and financing terrorism.

The new system replaces the previous threshold of 3,000 dinars for mandatory reporting and brings charity transactions under continuous monitoring.

The Central Bank’s oversight is part of a broader effort by the Ministry of Social Affairs to regulate donation collection and charitable project implementation inside and outside Kuwait.

Contracts with money collection companies now require prior written approval from the Ministry. Civil society organizations must also follow specific rules for banking transactions, which must be conducted through official letters from the Ministry or the association’s president, with transactions limited to salaries, membership fees, external support, and training course subscriptions.

The Ministry of Social Affairs, in coordination with the Ministry of Foreign Affairs and the Central Bank, has also introduced a new mechanism for overseas charitable transfers.

Licensed organizations may now transfer funds directly to approved foreign implementing agencies through local banks and exchange companies without prior ministry approval — except for certain high-risk countries identified on the Global Terrorism Index, for which advance clearance remains mandatory.

Transfers must be accompanied by a certificate from the Ministry of Foreign Affairs’ Humanitarian Action System verifying the recipient’s approval and banking details.

These measures are intended to safeguard charitable work, ensure donations reach their intended beneficiaries, and maintain Kuwait’s strong reputation in humanitarian and development efforts worldwide.

Follow The Times Kuwait on X, Instagram and Facebook for  the latest news updates