Pursuant to Law No. 106 of 2013, Article 2, enacted in the State of Kuwait, with respect to AML-CFT.
As per the executive bylaws, Module Sixteen, Article 7-7 which states the licensed person shall assign an External Auditor an assessment report on the level of compliance with all the legislative requirements and determinants set forth in the Anti-Money Laundering and Combating Financing Terrorism Law, in addition to the instructions issued by the Authority in this regard, as well as the level of compliance with its own internal policies, procedures, systems, and controls.
Integrity and stability of the global financial system, as well as the economy of member nations, depend on the implementation of effective anti-money laundering and countering the financing of terrorism (AML/CFT) laws and regulations.
Below are the main AUPs for AML and CFT:
- Customer Due Diligence (CDD): Use trustworthy, unbiased sources to confirm clients’ identities.
- Recordkeeping: Verify that the organization keeps current, precise client records.
- Employee AML Training: Assess the employee AML training initiatives.
- Evaluating the efficacy of internal controls for AML procedures is crucial.
- Reporting and Communication: Verify that the organization has protocols in place for informing the appropriate authorities about questionable transactions.
- Periodic evaluations: To make that AML policies and processes are still current and effective, conduct periodic evaluations.
- Relationships with Third Parties: Examine the due diligence procedure for dealings with companies that provide money services or correspondent banking.
These AUP for AML at the organizations have to be customized for the unique risk profile and regulatory context.
