11/11/2026
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11/11/2026
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KUWAIT CITY, Nov 11: Banks in Kuwait are preparing to strengthen monitoring of repeated cash deposits and financial transfers below KD3,000, following new regulatory directions aimed at detecting suspicious patterns and possible attempts to avoid reporting thresholds.
Under the enhanced monitoring approach, transactions below KD3,000 will not be assessed solely on their individual value. Banks will also examine the frequency, timing and combined value of repeated deposits or transfers within a specified period where the pattern raises concerns.
Previously, banks maintained reporting databases covering certain cash deposits and incoming transfers to Kuwait that were equal to or exceeded KD3,000, or the equivalent in foreign currency, during a single day for one customer.
However, regulatory attention is now being extended to cases in which transactions are repeatedly carried out below that threshold, particularly where there are indications that amounts may have been deliberately divided into smaller transactions to avoid triggering regulatory alerts.
Focus on Transaction Splitting
According to the report, the Central Bank of Kuwait has directed banks to review the effectiveness of their initial monitoring systems and ensure they can identify repeated cash deposits whose individual amounts fall below alert thresholds.
Banks are expected to consider:
- The total value of related transactions.
- The frequency of deposits or transfers.
- The time period during which transactions are carried out.
- Unusual transaction patterns.
- Possible indications of the deliberate splitting or fragmentation of transactions.
The monitoring process should not be limited to the value of a single transaction, with banks required to assess the broader pattern of customer activity and identify cases requiring further examination and verification.
Anti-Money Laundering Measures
The expanded monitoring forms part of Kuwait's efforts to strengthen controls against money laundering and terrorist financing, in line with the requirements of Law No. 106 of 2013 on Combating Money Laundering and the Financing of Terrorism.
Sources indicated that some deposits below the KD3,000 threshold may warrant regulatory attention because of their repeated nature or because amounts appear to have been deliberately kept below the reporting limit.
The Central Bank has therefore stressed the importance of examining suspicious patterns rather than relying solely on a transaction's individual value.
Banks Prepare New Monitoring Tools
Bank officials, anti-money laundering and counter-terrorism financing departments, compliance teams and internal-control specialists are reportedly discussing arrangements to provide the regulatory authorities with additional data and strengthen tools for investigating, monitoring and analysing unusual transaction behaviour.
The expanded approach is also expected to increase the volume of transaction data available to regulators, as it will cover a wider range of customers and banking activity than the previous focus on transactions reaching the KD3,000 threshold.
AI May Strengthen Monitoring
With Kuwait's accelerating digital transformation, artificial intelligence could also become an increasingly important tool in improving the ability of banks and regulators to collect, analyse and audit transaction data.
AI-based systems could help identify unusual patterns more efficiently and distinguish potentially suspicious activity from legitimate increases in transaction frequency resulting from inflation, rising salaries or higher consumer spending.
The enhanced monitoring is aimed at strengthening Kuwait's financial oversight framework and ensuring that attempts to avoid regulatory reporting requirements through the fragmentation of deposits or transfers can be identified and investigated.
