CBK tightens rules on donations to prevent terror financing risks
The Central Bank of Kuwait (CBK) has instructed banks and exchange companies to increase vigilance and strengthen monitoring procedures to safeguard the integrity of the country’s banking system and reinforce anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks.
The directive aims to prevent any attempts to misuse the financial system for collecting donations or transferring funds to entities linked to terrorist activities. The Central Bank noted that it has recently observed social media advertisements calling for donations to be routed through accounts outside Kuwait, raising concerns that such funds could be used to support illicit operations.
CBK emphasized that financial institutions must fully comply with due diligence requirements and adhere strictly to approved regulatory guidelines when processing transactions, particularly those involving foreign accounts that may present higher risks of misuse for financing illegal activities.
The Central Bank also highlighted the importance of following international standards and recommendations issued by the Financial Action Task Force (FATF), reinforcing Kuwait’s commitment to global best practices in combating money laundering and terrorist financing.
In addition, the CBK stressed the need for accurate and transparent reporting of all incoming and outgoing foreign transfers related to charitable organizations and public benefit associations, ensuring that such channels are not exploited for unlawful purposes.
The latest measures reflect Kuwait’s continued efforts to strengthen financial oversight, enhance regulatory compliance, and protect the banking sector from potential abuse linked to illicit financial flows.
