Kuwait Takes Steps to Prevent Financial Crime
The Central Bank of Kuwait (CBK) has been at the forefront of efforts to combat financial fraud in the country. In recent years, the bank has implemented a range of measures to enhance governance, administrative responsibility, and cybersecurity within the banking sector.
Enhancing Governance and Administrative Responsibility
In 2019, the CBK issued guidelines for banks to strengthen their internal controls and risk management practices. The directives aimed to:
- Improve governance: Ensure that boards of directors are responsible for overseeing the implementation of anti-financial crime measures.
- Strengthen information security: Enhance online protection and safeguard sensitive client information.
Cybersecurity Framework
In February 2020, the CBK developed a strategic framework for banking sector cybersecurity. The framework covers areas such as:
- Governance: Establishing clear roles and responsibilities for managing cybersecurity risks.
- Risk management: Identifying and mitigating potential cyber threats.
- System protection: Ensuring the security of online payment systems.
Banks were mandated to implement the strategy, while clients were informed about suspicious activities and recommended password changes.
Additional Security Measures
The CBK has implemented several additional measures to prevent financial crime:
- Quick card cancellation: Allowing for rapid cancellation of cards and accounts in cases of unauthorized use.
- Payment link restrictions: Requiring clients to provide information from banking statements, with transaction limits and ceilings.
- Ban on malicious applications: Prohibiting the use of the “Anydesk” application on smartphones.
Client Protection
The CBK has established a cyber unit to protect clients and gather complaints against local banks. The bank encourages financial institutes to establish similar units and has issued a comprehensive guide for client’s rights protection.
Public Awareness Campaigns
To boost public awareness of financial crime prevention measures, the CBK launched the “Let’s Be Aware” campaign in cooperation with public and private sectors, involving experts in the field.
By implementing these measures, the Central Bank of Kuwait aims to create a safe environment for banking transactions and prevent financial crime.