Compliance is a crucial function that should be established in business entities to ensure adherence to the requirements of the regulatory authorities, such as the Central Bank of Kuwait (CBK), Capital Markets Authority (CMA) and Insurance Regulatory Unit (IRU), and administrative authorities such as Ministry of Commerce and Industry, the Public Authority for Manpower and Ministry of Interior, to maintain business continuity without exposing the business entity to any risks such as imposing fines or suspending licenses.
What is Compliance Consulting?
Compliance consulting refers to advisory services intended to assist business entities in complying with laws, regulations, and regulatory instructions issued by supervisory authorities. It also involves the implementation of best practices and professional standards governing their activities, thereby mitigating legal and regulatory risks and enhancing transparency and corporate governance.
What are the key regulatory authorities in the State of Kuwait that mandate business entities to follow their regulations/ instructions/ resolutions?
- Central Bank of Kuwait: It supervises banks, financing companies, exchange companies, credit information companies and electronic payment business.
- Capital Markets Authority: It supervises listed companies and companies licensed to carry on securities business.
- Insurance Regulatory Unit: It supervises insurance companies, reinsurance companies, brokerage companies for insurance and reinsurance, and insurance related professions.
Why is the compliance function important in business entities supervised by the regulatory authorities?
The regulatory authorities in the State of Kuwait issues (executive regulations, instructions/ resolutions) regarding the business practice frameworks. Such regulations are applicable and enforceable immediately upon issuance or over different timeframes. The importance of the compliance function lies in ensuring that the business entities comply with the regulations and instructions in place since noncompliance would expose such entities to financial and other penalties that would amount to suspension of business.
What business entities should do to comply with the requirements of the regulatory authorities?
Business entities should:
- establish an organizational unit for compliance function
- set up a job structure that will be able to meet the requirements of the regulatory authorities
- develop processes, policies and procedures manuals
What is the added value to business entities from Compliance Consulting Services?
- Ensure that regulatory compliance is achieved including compliance with laws, regulations, resolutions, rules, and instructions issued by the regulators;
- Ensure compliance with the up-to-date international standards and practices, which are relevant to the entity’s business activities;
- Promote the stakeholders’ confidence in the business entities and enhance their reputation in the marketplace where they operate; and
- Utilize the expert knowledge and experiences brought through compliance consulting services.
What are the services offered by Baker Tilly Kuwait?
- Assessment of corporate governance systems as per the CMA instructions
- Assessment of corporate governance systems as per the CBK instructions
- Assessment of corporate governance systems as per the IRU instructions
- Outsourced Compliance Officer function as per the CMA requirements
- Outsourced Compliance Officer function as per the IRU requirements
Why Baker Tilly?
- Extensive expertise in regulatory and administrative legislation
- Specialized advisory team in regulatory compliance
- Tailored solutions designed to meet each client’s specific needs
- Implementation of international best practices in risk management and regulatory compliance