Banks in Kuwait have recently sought the guidance of the Central Bank of Kuwait concerning the control mechanism required for banking operations related to both bank employee accounts and customer accounts. The inquiry aimed to understand the adequacy of the procedures employed by banks to monitor their employees’ accounts and whether the central bank had any specific directives in this regard, reported Al-Rai Daily.
In response, the Central Bank emphasized the importance of due diligence requirements to verify the integrity of funds and information associated with both customer and employee accounts. This involves comparing account activity with the information recorded in the Know Your Customer (KYC) forms to ensure consistency with executed transactions.
The Central Bank has urged banks to adhere to previously issued instructions, most recently amended in February, which outline the frameworks and concepts that banks must consider when establishing policies and procedures for monitoring both employee and customer accounts.
Sources indicate that banks, in line with the Central Bank’s instructions, employ established internal control systems and closely monitor unusual money flows into customer accounts. Special attention is given to employee accounts, with thorough inquiries into the source of funds and the provision of evidence confirming their legitimacy, particularly when the funds significantly exceed the employee’s regular income.
Overall, banks carefully review account opening documentation and conduct screenings against negative lists when establishing new accounts or processing transactions. Additionally, they scrutinize incoming fund transfers, ensuring that they align with traditional income levels or require proof of their legitimacy when exceeding established financial norms.
In the context of fund movement audits for both employees and external customers, banks uphold rigorous due diligence procedures. They also remain committed to adhering to anti-money laundering and counter-terrorism financing regulations, verifying that official identity documents match customer ID instructions during the account-opening process.
The sources underscored that banks are fully dedicated to maintaining compliance with the Central Bank’s guidelines and closely monitoring developments in their internal operations to ensure the highest standards of financial integrity.
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