The Central Bank of Kuwait published a statement outlining how it applies penalties to supervised entities for failures to comply with anti-money laundering, terrorist financing and proliferation financing (ML/TF/PF) requirements, and announced that it will publish summary information on imposed penalties on its official website. The approach is framed against Financial Action Task Force (FATF) recommendations and the 2022 updated assessment methodology, with penalties intended to be effective, proportionate and deterrent and calibrated to the size and seriousness of the breach. The statement referenced a Board of Directors decision approving the Central Bank’s penalty methodology under Article 15 of Law No. 106 of 2013 and reiterated existing disclosure expectations, including that banks present an annual summary of penalties to their general assembly and that exchange and financing companies promptly share Central Bank letters, including those imposing penalties, with major partners and boards. Since Law No. 106/2013 was issued, the Central Bank reported imposing 356 penalties in total, comprising 180 written warnings and 176 financial penalties.
Central Bank of Kuwait 2025-05-22
Central Bank of Kuwait adopts methodology for AML, terrorist financing and proliferation financing penalties and will publish sanctions applied to supervised entities
The Central Bank of Kuwait announced its penalty application framework for non-compliance with anti-money laundering, terrorist financing, and proliferation financing requirements, aligned with Financial Action Task Force recommendations. The framework, approved under Article 15 of Law No. 106 of 2013, mandates effective, proportionate, and deterrent penalties, with 356 penalties imposed since the law's enactment.