Exchanges in deposit, transfer reporting mandate on KD 3,000

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Disclosure rule kicks in July 3

KUWAIT CITY, June 28: Beginning July 3, the Central Bank of Kuwait requires all banks operating in Kuwait including the money exchange companies to provide it with the data of remittances and cash deposits from and to Kuwait on a daily basis, specifically if the value of transaction is more than 3,000 dinars or more or its equivalent in other currencies, reports Al- Rai daily.

In this regard, financial sources told the daily that the exchange companies are issued instructions to provide the CBK complete data of financial transactions as part of broader control efforts aimed at additional regulatory verification of the extent of commitment of these units to follow up on money transfers.

The sources noted that the CBK has circulated to the 32 exchange companies, that it has decided to establish a (TRS) database, to receive (FCT) data for the transactions that must be reported, and related to money transfers executed to Kuwait for the benefit of customers which are equal to or more than 3,000 dinars or its equivalent in foreign currencies per day per customer.

The new CBK decision was in effect until 2014 “after the establishment of the Financial Intelligence Unit”, when the sources reported that restoring the procedure again comes as a matter of supervisory concern to quickly benefit from the data required to be sent from banks and exchange companies according to the guideline in this particular. The CBK indicated in its circular that it was decided that receiving the required information (TRS) about the data related to this from (LCT) and (FCT) not later than 10:00 the following day for transactions that have been carried out the previous day, including holidays and official.

The Central Bank also indicated in its circular that it seeks to double the oversight follow-up with the Financial Intelligence Unit, with the aim of verifying unusual financial transactions both ways to and from Kuwait, and that it plans to create more tools in this regard, which contribute to increasing the ability to query, follow-up, and analyze patterns and behavior for unusual operations.

For its part, sources close to the daily said they sought to decipher the Central Bank’s move in this direction, explaining that the regulator seeks to impose more comprehensive control over cash deposits and financial transfers to and from Kuwait. The sources indicated that some customers use more than one bank account in their daily transfers, and the same applies to exchange companies, in order to avoid falling into the trap of suspected violations of anti-money laundering and terrorist financing instructions and ease of distributing funds in more than one transaction.

Meanwhile, the sources reported that due to the absence of a unified control database, it is not possible to determine the safety of all financial transactions, and to ensure their regularity, the importance of providing the Central Bank with a daily statement showing the total cash transfers and deposits to and from Kuwait for the same customer daily from all outlets.

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