BANKS’ ROLE IN PREVENTING FINANCIAL CRIMES IN KUWAIT INTENSIFIED
Combating Financial Fraud in Kuwait: A Multi-Pronged Approach
The Central Bank of Kuwait (CBK) has been at the forefront of efforts to prevent financial crimes and ensure a secure banking environment in the country. In this article, we will explore the various measures taken by the CBK to combat financial fraud and promote good governance among local banks.
Measures to Prevent Financial Crimes
The CBK has implemented several guidelines for local banks to ensure good governance and boost administrative responsibility. Some of these measures include:
- Fail-safe system: Banks are required to implement a fail-safe system within institutions to prevent financial crimes.
- Information security measures: Boards of directors are advised to strengthen information security measures and bolster online protection.
- Comprehensive strategic framework for cybersecurity: The CBK has finalized a comprehensive strategic framework for cybersecurity in the banking sector, covering essential aspects such as governance, risk management, administrative operations, cloud technology, and online payment systems.
Client Protection
To further enhance security and protect clients, banks are required to:
- Cancel client cards and accounts promptly: In case of unauthorized use or to prevent the use of credit cards on unverified devices.
- Educate clients on suspicious activities: Recommend password changes and take other precautionary measures.
- Implement measures such as locking cards after three failed password attempts.
Recent Initiatives
The CBK has recently taken several initiatives to combat financial fraud, including:
- Payment links for individuals: A memo was issued to local banks regarding payment links for individuals, requiring clients to provide necessary information from banking statements.
- Malicious “Anydesk” application: The bank notified local banks of the malicious “Anydesk” application on smartphones and tasked the Kuwait Banking Association (KBA) to establish a round-the-clock command center to handle financial fraud reports.
- Cyber unit: A cyber unit was launched in December 2022 to gather complaints against local banks.
Public Awareness Campaigns
The CBK has also been encouraging public awareness of financial fraud through various campaigns, including:
- “Let’s Be Aware” campaign: A campaign aimed at preventing online scams, which saw cooperation from the public and private sectors, as well as participation from experts.
- Client complaint hotline: Introduced in 2013 to create a safe environment in Kuwait and combat fraud efforts.
Conclusion
The CBK has taken significant steps to prevent financial crimes and promote good governance among local banks. These measures aim to protect clients and ensure a secure banking environment in Kuwait. By continuing to monitor and adapt to emerging threats, the CBK can help maintain the integrity of the financial system and safeguard the interests of clients.