Kuwait has intensified regulatory measures on money transfers, raising concerns among individuals and businesses engaged in periodic financial transactions. The Central Bank of Kuwait (CBK) is implementing stricter oversight to ensure transparency and compliance with international financial regulations.

According to sources, the CBK now requires detailed verification of actual beneficiaries, even for transactions under 50 Kuwaiti dinars. Individuals assisting friends with transfers or acting as intermediaries for companies with overseas employees may face increased scrutiny. Additionally, transactions that are consistent in frequency or amount will require justification, regardless of the sender's relationship with the exchange company.

The new regulatory framework aligns with the Financial Action Task Force (FATF) guidelines to combat money laundering and terrorist financing. Exchange companies must verify and update customer information throughout the transaction process, ensuring transparency in financial transfers. Furthermore, automated monitoring systems must be regularly assessed to prevent illicit financial activities.

Exchange companies are now required to maintain customer and transaction records for a minimum of five years. For transactions exceeding 3,000 dinars (or equivalent foreign currency), detailed data must be submitted to the CBK for review. Additionally, companies must implement robust protocols to identify and report suspicious transactions that may involve proceeds of crime or links to terrorism financing.

To enhance financial security, exchange companies must classify customers into risk levels—low, medium, or high—and apply appropriate due diligence measures. High-risk customers will be subject to additional scrutiny, including file reviews and transaction monitoring.

As part of its oversight efforts, the CBK mandates that exchange companies engage an audit firm, preferably linked to an international entity, to evaluate compliance with Law No. 106 of 2013. These audits, focused on detecting unusual transactions, must be conducted semi-annually, with reports submitted by June 30 and December 31.

To comply with international financial security measures, exchange companies must integrate an automated system to screen individuals and entities against global sanctions lists, including those issued by the UN Security Council and Kuwait’s Ministry of Foreign Affairs. Financial services are strictly prohibited for individuals or organizations listed under these sanctions.

With these enhanced regulatory measures, individuals and businesses involved in money transfers must ensure compliance with the new standards. By adhering to the updated verification and reporting requirements, Kuwait aims to fortify its financial sector against illicit activities while maintaining alignment with global anti-money laundering efforts.