KYC.IO

Global Regulations and Requirements for KYC Onboarding
(powered by KYC-Chain)

KYC to onboard domestic persons

identity documentssource of income

KYC to onboard international persons

identification documentssource of fund

corporate requirements

identification documentation

National ID card name

Kuwaiti identity card

National ID Photo

back of national id photo back

Does the country have Esignature Laws?

Electronic Transactions

E-sig law files

What year did the relevant AML laws and regulations become effective?

2013

Further details on AML regime

Law #106/2013 came into effect in May 2013, replacing law #35/2002.

Who is the regulator for AML controls for Banking

law #24/2012 relates to the establishment of Anti-Corruption Authority that looks after all the AML related activities for Kuwait as a whole. In addition, the Central Bank of Kuwait plays a role in monitoring the financial sector

Link to site

http://www.cbk.gov.kw/

Other financial Services

Capital Markets Authority

Website of Regulator

http://www.kuwaitcma.org/

Financial Sector regulator

http://www.moci.gov.kw/

Practical Guidance for AML

None other than what is covered in the law and regulations above.

Is there a requirement to verify the identity of customers retroactively?

Yes

Retroactive details

Yes, all financial institutions are required to update their records by requesting all their customers provide new KYC information.

Has the country been the subject of FATF mutal evaluation in the last 3 years?

Yes, the IMF did a report on Kuwait in 2011, which resulted in the issuance of the mentioned laws above. A full report is not available, however extracts that were reported in the local media can be obtained.

Are there minimum transaction thresholds (Y/N)

Yes

More details on minimum transaction thresholds.

For banking transactions (i.e. a cash deposit or transfer), no thresholds are in place. In the event of purchasing jewellery, it is required that photo identification is presented in addition to the source of funds

What are the requirements for customer identification information for individuals

Identification documentation and source of funds

Details to be Collected on Corporates

Identification documentation and source of funds

What are the high level requirements around beneficial ownership (identification and verification)?

None.

What circumstances are enhanced customer due diligence measures required?

With respect to foreigners (i.e. those whose identification and documents are not issued locally), attestation from the Kuwaiti embassy in that particular country and the ministry of foreign affairs is usually

How should FI's deal with Politically exposed persons

Always.

What enhanced due diligence must be performed for correspondent banking relationships?

Are relationships with banks who might be considered a 'shell' and without substance permitted?

In what circumstances is additional due diligence required for non face-to-face transactions and/or relationships?

Other Suspicious or unusual transactions obligations.

Yes.

Are there any de-minimis thresholds below which transactions do not need to be reported?

No.

Are there any penalties for non compliance with reporting requirements e.g. tipping off?

Yes, it is covered under the relevant laws.

Are there any requirements (legal or regulatory) to use automated Suspicious Transaction monitoring technology?

No.

Is there a requirement to obtain authority to proceed with a current/ongoing transaction that is identified as suspicious?

Yes

Does the local legislation allow transactions to be monitored outside the jurisdiction?

No.

Is there a legal requirement for a bank’s external auditor/other external organisation to report on the bank’s AML systems and controls?

Yes.

If an external report on the bank’s AML systems and controls is required: a) how frequently must the report be provided?

Yes, it is performed annually

To whom should the report on AML systems be submitted?

It is reported to the Central Bank of Kuwait

Is an AML system part of the financial statement audit?

It does not form part of the financial statement audit.

What are the requirements for the content of this external report on a bank’s AML systems and controls? Does it require: a) sample testing of KYC files? b) sample testing of SAR reports? c) examination of risk assessments?

Sample testing of all the above is required. The report itself is referred to as the Internal Controls Review (“ICR”).

Data Protection Laws And Personal Data

Yes.

Data Protection for Corporate Data

Yes

Data protection for "sensitive Data" and additional protections.

there is no separate definition of sensitive data.

Do any restrictions on the transfer of credit reports exist?

Yes, information can only be shared with the Central Bank of Kuwait. It cannot be shared with any other party

Regulator Acronym

CBK

Year of last FATF mutual evaluation

N/A

Field 67

attestation from the Kuwaiti embassy ministry of foreign affairs is usually

National ID card details

The Kuwaiti identity card is issued to Kuwaiti citizens.

National ID source

http://www.wikiwand.com/en/Kuwaiti_identity_card

Passport Photo

practical Guidance yes / no

Is there a risk based approach

Legal Requirement

Yes

Requirement to proceed

Yes

requirement to use automated suspicious transaction tools

shell banks

EDD for correspondent banking

Personal Data protection

Data Protection for Corporates

If the AML laws and/or regulations became effective in the last 2 years, what were the requirements of the previous AML regime?

Prior to law #106/2013, law #35/2002 was in effect, which did not cover international treaties in relation to terrorist financing. The update to the law reflects the recent developments in AML across the world.

Non financial sector (e.g. casinos, high value goods etc.)

) commercial goods are monitored by CBK and Ministry of Commerce and Industry

Does the country have a risk based approach?

Yes.

Where copies of identification documentation are provided, what are the requirements around independent verification or authentication?

None.

Is there case law, other constitutional law or any other laws or regulations that may impact upon the transfer of information to this jurisdiction?

Yes, banking law #32/1968

List of case law, constitutional law or any other laws or regulations that may impact upon the transfer of information.

Yes, under banking law #32/1968, all customer data is considered confidential.