Financial Crime World

Kuwait Takes Steps to Prevent Financial Crime, Boost Public Awareness

The Central Bank of Kuwait (CBK) has been taking proactive measures to counter financial fraud and protect clients’ rights in the country. In this article, we will explore the various steps taken by the CBK to enhance governance, administrative responsibility, and public awareness about online scams.

Enhancing Governance and Administrative Responsibility

In 2019, the CBK advised local banks to bolster their cybersecurity by safeguarding information and enhancing online security. This included:

  • Implementing a strategic framework for the banking sector’s cybersecurity
  • Meeting minimum needs for governance, risk management, administrative operations, cloud technology, and systems protecting online payments

Protecting Clients’ Rights

The CBK has taken several measures to protect clients’ rights, including:

  • Requiring banks to inform clients about suspicious activities and recommend password changes
  • Mandating banks to cancel cards and accounts of clients within a short period in case of unauthorized use or failed login attempts

Preventing Financial Fraud

The CBK has implemented various measures to prevent financial fraud, such as:

  • Issuing a memo to local banks regarding payment links for individuals, requiring clients to provide necessary information from banking statements
  • Setting daily and monthly value ceilings for these transactions
  • Banning the use of malicious applications such as “Anydesk” on smartphones

Boosting Public Awareness

The CBK has launched several awareness campaigns to educate the public about online scams, including:

  • The “Let’s Be Aware” campaign, which saw cooperation from the public and private sectors and participation of experts
  • A comprehensive guide for clients’ rights protection was issued in 2015 to create a safe environment in Kuwait

Establishing Client Protection Units

The CBK has been encouraging local financial institutes to establish their respective units for client protection since January 2011, and established a clients’ hotline in 2013.

Cyber Unit to Protect Clients

The bank launched a cyber unit in December 2022 to protect clients and gather complaints against local banks. The unit will work closely with the Kuwait Banking Association (KBA) to deal with financial fraud reports from clients in Kuwait.