CBK moves to combat money laundering, terror financing
KUWAIT CITY, Nov 7: In a new supervisory action to combat money laundering and terrorist financing, the Central Bank of Kuwait (CBK) stressed all banks, finance companies and money exchanges are under the obligation to freeze all assets and accounts of any person, group or entity on the lists issued by the UN Security Council’s sanctions committees or the local committee whether owned directly or indirectly, in full or in partnership, reports Al-Rai daily.
The CBK has issued a circular, a copy of which has been obtained by the daily, which calls for freezing the targeted funds, and refrain from providing services to any of the names received from the United Nations Security Council Sanctions Committee to combat terrorism and the financing the proliferation of weapons of mass destruction.
The circular also stressed on the need to prepare working procedures to achieve the required compliance with all the requirements of resolution No. (35) of 2019, as well as the adoption of the necessary automated systems to ensure that there are no dealings with any of the names ‘on the freeze lists’.
In this regard, the CBK requests to provide the bank within 3 working days from the date of the circulation of the names, where it will continue to verify the compliance of all units with the requirements imposed by resolution (35), noting that sanctions will be imposed, and measures will be taken provided for in Article (15) of the law (106) of 2013 on combating money laundering and terrorist financing in case of violation of any of the units subject to the requirements of this resolution, as well as the follow-up mechanism issued by the sanctions committee formed under Chapter VII of the Charter of the United Nations.
The Central Bank stresses on the need to follow the banks, finance companies and exchange companies:
1. Follow-up throughout the day to publish the decisions of the specific sanctions committees, as well as to update the freeze lists announced through the electronic network and take the required actions to ensure compliance with the requirements of these decisions and with regard to the names on the lists issued immediately, without any delay.
2. Commitment to take measures to ensure the implementation of the requirements of the resolutions of the Implementation Committee of the Security Council Resolutions issued under Chapter VII of the United Nations Charter on Combating Terrorism and Financing the Proliferation of Weapons of Mass Destruction upon receiving notification from the Central Bank by email without delay.
3. If there are targeted balances or past or current transactions with the names of persons, groups or entities, whether listed in the Security Council or Local Committee sanctions committees, the Central Bank shall be notified of any action taken within a maximum of 3 working days.
4. When using third parties to update data on the names of persons, groups or entities on the lists of Security Council sanctions committees, additional measures and procedures shall be taken to ensure compliance with the freezing of funds, assets and accounts of the names of persons, groups or entities for which decisions are made.
5. The Central Bank will send, through the e-mail of the Anti- Money Laundering and Terrorism Financing Section in the control sector, what shall be issued by the Security Council Implementation Committee.
6. Obligation to prohibit the availability of funds or the provision of financial or other related services directly or indirectly to the person, group or entity whose name is included in the lists issued by the Sanctions Committees, subject to the provisions of Article 20 of Resolution No. 35 of 2006; 2013, concerning the disposition of part of the funds in accordance with the articles contained in Resolution No. (1452) as determined by the Committee in this regard.
7. Providing the banks to the Central Bank within 3 days from the date of the circulation of the names of two of its specialists and specifying the e-mail address for each of them, and also assigning an e-mail address available to those concerned with the application of the requirements of the freezing decisions, and the prohibition of dealing issued by the local committee as soon as it is received.
The concerned parties shall undertake the following: Confirmation of receipt of decisions immediately upon receipt of mail from the CBK and that action is being taken to implement it; to provide the CBK via e-mail and within a maximum of 3 working days of the actions taken by the unit; in case of change of persons or mail addresses submitted on receipt of the mechanism, the Central Bank should be notified.