The local banks have sought the opinion of the Central Bank of Kuwait regarding the required control mechanism for banking operations between bank employee accounts and customer accounts, reports Al-Rai daily. The sources explained that the banks have asked the supervisory regulator to provide them with the adequacy of the procedures followed by them to monitor their employees’ accounts, and whether the central bank had any directives that should be taken into account.

Due diligence
In this regard, the Central Bank stated that banks must fulfill due diligence requirements to verify the integrity of the funds and information available to them, whether about the movement of customer or employee accounts, and compare it with their financial data recorded in the Know Your Customer form, to ensure the extent of its consistency with the transactions executed on their accounts. The Central Bank asked banks to rely on the instructions that were issued previously and amended last February, which specified the frameworks and concepts that banks must take into account when setting policies and work procedures that must be followed to verify compliance with fulfilling the requirements of the instructions for monitoring the accounts of their employees and customers.

The sources indicated that banks rely, in implementing oversight instructions on employee and customer accounts, on the instructions of the Central Bank and their established internal control systems, especially with regard to unusual money flows that are transferred to the customer’s accounts, whether he is an employee or a customer from outside the bank, with Taking into account increased due diligence with the employee client.

The sources said that the banks follow a more careful policy in accordance with the instructions of the Central Bank on employee accounts, as once any unusual amounts pass into the employee accounts, they are immediately inquired about the source of these funds, and any evidence confirming their safety, especially if the liquidity flowing to the employee’s account is high compared to the size of the money. According to sources, banks maintain a comprehensive review process for customer account opening documents, including a thorough examination of any negative records, before authorizing new accounts or processing financial transactions.

Furthermore, banks meticulously inspect incoming fund transfers to customer accounts. During this process, they consider the regular income sources or request evidence of their legitimacy if they surpass conventional financial thresholds. This scrutiny is particularly applicable to funds that are regularly deposited into the client’s accounts.

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