[AML-CFT] CBK must be strict to prevent ‘money laundering’
- KUWAIT CITY: The Ministry of Social Affairs and Labour has asked the Central Bank of Kuwait (CBK) to be strict in implementing the decisions of the UN Security Council on fighting terrorism, a reliable source told Al-Qabas. He said the ministry has asked CBK to take into consideration the studies conducted by the ministry on regulating charitable works and the procedures for collecting donations to ensure such contributions do not end up in the hands of terrorists, adding “the Mubarrat and Charitable Societies Department at the Social Affairs Ministry has asked Governor of CBK and Chairman of the National Committee to Fight Money Laundering Sheikh Salem Abdul Aziz Al-Sabah to take strict measures to prevent money laundering.” The department considers it important donations collected in the country are sent abroad through legal channels, which can be monitored to review the results, he said.
Meanwhile, the Central Bank of Kuwait (CBK) has issued some new regulations in an effort to increase its control on the loans granted by local commercial banks, says Al-Qabas.
A reliable source said CBK has instructed all local banks to take into consideration the credit limit of their customers as fixed by popular credit cards like Visa and Master Cards in granting loans against deposits, adding “CBK has given all local commercial banks and financial companies three months to comply with the new decision and re-calculate their financial position.”
Claiming the CBK’s condition has taken local banks and financial companies by surprise, the source said “all the banks are against this issue because credit card is an additional service given to customers for daily usage.” Indicating the total cost of purchase made using credit cards is usually deducted at the rate of 10 per cent every month, he said “this cannot be considered a huge liability for customers. Credit cards give them flexibility in purchasing the materials they want.” He also said “in the view of local banks customers do not face any problem in using credit cards because they can use it only according to their credit limit, which cannot be exceeded.”Meanwhile, sources says CBK is looking for ways to reduce the loans given by banks following reports Kuwait is one of the top countries in the region in using credit cards.
Posted By Inonu Akgun ALP to AML-CFT at 3/26/2007 12:52:00 AM