Financial Crime World

Preventing Financial Crimes: Central Bank of Kuwait Takes Proactive Measures

The Central Bank of Kuwait (CBK) has been actively working to combat financial crimes through various directives for banks, awareness campaigns for clients, and strategic frameworks for cybersecurity.

Implementing Governance and Administrative Responsibility

In 2019, the CBK issued guidelines to ensure proper governance and administrative responsibility among banks. These guidelines serve as a safeguard against financial fraud and were mandated for implementation among all banks in Kuwait.

  • Directives for banks: The CBK advised board of directors to bolster online security by implementing effective means to safeguard information.
  • Cybersecurity framework: A strategic framework for cybersecurity in the banking sector was finalized in February 2020, meeting minimum needs for governance, risk management, and online payment protection.

Protecting Clients from Financial Fraud

The CBK has implemented several measures to protect clients from financial fraud:

  • Suspicious activity reports: Banks were mandated to inform clients about suspicious activities and recommend password changes.
  • Card cancellation and account freezing: The ability to cancel cards and accounts within a short period was introduced, along with preventing unauthorized credit card use on devices.
  • Verification of client information: A memo was issued in April 2023 requiring local banks to verify client information through banking statements before processing online payments.

Enhancing Security Measures

The CBK has taken several steps to enhance security measures:

  • Ban on malicious applications: The use of the malicious “Anydesk” application on smartphones was banned in September.
  • Round-the-clock command center: The Kuwait Banking Association (KBA) was tasked with establishing a round-the-clock command center to deal with financial fraud reports.
  • Cyber unit establishment: A cyber unit was established in December 2022 to protect clients from complaints against local banks.

Boosting Public Awareness

To boost public awareness of financial fraud, the CBK launched the “Let’s Be Aware” campaign, which saw cooperation from the public and private sectors, as well as participation from experts. The campaign aims to prevent online fraud and create a safe environment in Kuwait.

The Central Bank of Kuwait has been actively working to combat financial crimes through various directives for banks, awareness campaigns for clients, and strategic frameworks for cybersecurity. By implementing governance and administrative responsibility, protecting clients from financial fraud, enhancing security measures, and boosting public awareness, the CBK aims to prevent online fraud and create a safe environment in Kuwait.