Title: Circular No. (14) of 2023
"Circular to All Licensed Persons"
Chairman of the Board of Directors
The Capital Markets Authority (CMA) would like to draw your attention to the provisions of Article (3-39) of Module Sixteen "Anti-Money Laundering & Combating Financing of Terrorism" of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, and amendments thereto, which stipulate that “A Licensed Person must scrutinize and pay attention to business relationships or transactions with clients or financial institutions from countries which do not or insufficiently apply the FATF recommendations. Where the Authority advises the Licensed Person that such country insufficiently applies the FATF recommendations, the Licensed Person shall treat all business relationships and transactions from that country as high risk and shall apply the measures set out in Article (3-19) of this Chapter.”
Accordingly, the Financial Action Task Force (FATF) has updated the list of countries which do not or insufficiently apply the FATF recommendations in its recent meeting held in October 2023.
The CMA is keen to act according to the provisions of the above mentioned Article, therefore, you are requested to visit the FATF website (http://www.fatf-gafi.org) for the updated list of countries not applying or insufficiently applying the FATF recommendations in order to comply with the provisions of Article No. (3-39) of Module Sixteen "Anti-Money Laundering & Combating the Financing of Terrorism" of the Executive Bylaws of Law No. 7 of 2010 and amendments thereto.
It is worth mentioning that the circular mentioned above applies to clients of the licensed person who are residents in the State of Kuwait and hold a nationality of a country that does not apply or insufficiently applies the FATF recommendations as well as the citizens that have business relations with financial institutions affiliated with those countries.
Prof. Ahmad Al-Melhem
Issued on: 31/10/2023.