Anti-money laundering and combating the finance of terrorism (AML-CFT) has been of great concern for all governments worldwide due to their detrimental effects on economies and global security.
Therefore, the Financial Action Task Force (FATF), an inter-governmental body, was established in 1989 by the Ministers of its Member jurisdictions. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
The State of Kuwait enacted legislation addressing countering money laundering and combating the financing of terrorism. Such legislation includes Law No. (106) of 2013 concerning Anti-Money Laundering and Combating the Financing of Terrorism, and its Executive Regulations issued under Ministerial Resolution No. 37 of 2013.
Pursuant to the above mentioned Law, i.e. Article (16) thereof, Kuwait Financial Intelligence Unit was established. It shall be an independent legal person and serve as the body responsible for receiving, requesting, analyzing, and disseminating information concerning suspected proceeds of crime or funds related, linked to or to be used for money laundering or terrorism financing according to the provisions of this Law.
Are there mandatory requirements issued by the regulators concerning training in AML/CFT?
Yes, the instructions issued by the regulators in the State of Kuwait require business entities to provide training in anti-money laundering and combating the financing of terrorism.
Article 7-8 of Chapter Seven “Ongoing Obligations” of Module Sixteen “Anti-Money Laundering and Combating Financing of Terrorism” of the Executive Regulations of Law No. 7 of 2010 regarding the Establishment of the Capital Markets Authority and Regulation of Securities Activity, as amended, states that:
“A Licensed Person shall take all appropriate steps to ensure that their staff, managers, directors, and executive management members receive regular training on:
AML/CFT laws and regulations, in particular customer due diligence measures, and detecting and reporting suspicious transactions;
Prevailing techniques, methods and trends of combating money laundering and terrorism financing; and
Licensed Person’s internal policies, procedures and controls on anti-money laundering and combating the financing of terrorism and the responsibilities of staff in combating money laundering and terrorism financing”.
Further, the Central Bank of Kuwait’s Instruction to Local Banks No. (2/BS, IBS/208/2013) regarding Anti-Money Laundering and Combating Financing of Terrorism, Clause Eighteenth: Business Procedures, Systems and Internal Controls, sets forth as follows:
Banks shall implement ongoing training programs for all new and current employees, directors, members of executive and supervisory management, and managers to update them on all developments, including information about prevailing patterns in money laundering and terrorism financing, to enable them perform their obligations under Law No. (106) of 2013 concerning Anti-Money Laundering and Combating the Financing of Terrorism, its Executive Regulations and this Instruction.
In this context, Baker Tilly delivers a number of specialized training programs and workshops on Anti-Money Laundering and Combating Financing of Terrorism, which meet the needs of different business sectors in the State of Kuwait on one hand, and on the other hand, ensure compliance with the requirements of the regulatory bodies in Kuwait represented in the Central Bank of Kuwait, Capital Markets Authority and Ministry of Commerce and Industry. When delivering such programs and workshops, Baker Tilly pays special attention to incorporate best practices in this domain with special focus on the relevant local legislation.
What are the objectives of AML/CFT Training programs and Workshops?
The AML/CFT training programs and workshops aim at acquainting all employees with the concept of AML/CFT, the regulatory instructions issued in this regard as well as their roles in terms of implementing those instructions and helping their business entities achieve compliance and avoid any penalties.
What are the relevant industries concerned with AML/CFT Training programs and Workshops?
The industries concerned with AML/CFT training programs and workshops are shown below:
Real estate companies
Who should attend AML/CFT Training programs and Workshops?
The audience to attend the AML/CFT training programs and workshops is shown below:
Board of Directors and executive management
What is the added value to business entities from AML/CFT Training programs and Workshops?
Ensure that all employees are familiar with the AML/CFT requirements and practices; and
Ensure compliance with the instructions issued by the regulatory authorities.