Press Releases

In order to ensure compliance with the requirements of combating ML/TF/PF, with regards to international standards (recommendations issued by the Financial Action Task Force “FATF”), and what is stated in the updated methodology for the year (2022) that was developed to assess technical compliance with the recommendations regarding the penalties (sanctions) imposed for failure to comply with these requirements, which were ensured to be “effective, proportionate and deterrent” so that they are applied in a manner commensurate with the size and seriousness of the violation or contravention, while urging the supervisory authorities to publish the penalties imposed on the violating entities.

In reference to the decision of Board of Directors the Central Bank of Kuwait No. (36/488/2025) approving the Central Bank methodology regarding the imposing of penalties in accordance with Article (15) of Law No. 106 of 2013 regarding combating money laundering and terrorist financing, and what was included in this methodology regarding the publication of penalties imposed on supervised entities, in order to enhance the transparency for all supervised entities, a summary/information about the penalties imposed on violating entities will be published on the official website of the Central Bank in order to achieve the targeted supervisory objectives, and in a way that sheds light on how the Central Bank of Kuwait uses regulatory and supervisory means towards the supervised entities, and in a way that supports compliance with these requirements.

This comes in support of the previous approach followed by the Central Bank, which was disclosed in its circular issued on 2/7/2011 and reinforced on 3/24/2019 to all banks, requiring all penalties imposed during the year to be presented to the bank’s general assembly by preparing an independent statement to be read by the Chairman of the Board of Directors at the annual general assembly meeting, as well as its circular issued on 3/6/2012 to all exchange and financing companies, obligating these companies to also present the letters sent to them by the Central Bank of Kuwait (including the letters that included the imposition of penalties) to all major partners/board of directors immediately upon receipt of those letters.

It is also important to note that since the issuance of Law No. 106/2013 regarding combating money laundering and terrorist financing, the Central Bank of Kuwait has imposed penalties on its supervised entities within the framework of Article (15) of the law, with a total number of (356) penalties, including (180) written warnings and (176) financial penalties.