Decision of the Board of Directors of the Central Bank of Kuwait on the Executive Procedures Applicable to the Provisions of Item (2) under Article (57) of Law No. (32) of Year 1968, Amended by Law No. (28) of Year 2004

Item (2) under Article (57) of Law No. (32) of Year 1968, concerning Currency, the Central Bank of Kuwait and the Organization of Banking Business, amended by Law No. (28) of Year 2004, stipulates the following: “ Unless by prior authorization of the Central Bank, the direct or indirect ownership by any single natural person or legal entity in a Kuwaiti bank shall not exceed five percent of the bank’s capital. Governmental bodies and bodies with independent or attached budgets are exempted from these provisions. Where single ownership exceeds the above percentage for any reason whatsoever, the concerned natural person or legal entity shall dispose of the excess within the period defined by the Central Bank. Violation of this provision results in the shareholder not availing of the excess equity in regard to voting rights in the bank’s General Assembly and directing the bank. The Board of Directors of the Central Bank shall lay down the bases and rules defining the concept of indirect ownership. The provisions of this Article do not apply to cases existing before the application of this Law ”.

Accordingly, the Board of Directors of the Central Bank of Kuwait (CBK), in its meeting on 4/4/2004, decided the following:

First: Principles and rules defining the concept of indirect ownership, according to the provisions of item (2) under Article (57) of Law No. (32) of Year 1968, and amendments thereof:

Within the application of the provisions of Article (57) of Law No. (32) of Year 1968, and amendments thereof, the concept of indirect ownership is defined as “ownership by parties economically or legally connected to the investor, be the latter a natural or juristic person, and whether such connection derives from joint ownership, joint management or related interests”.

Joint ownership and joint management signify any economic or legal connection through joint ownership and joint management. The following are considered cases of joint ownership and joint management.

1. Shares held by the investor in one bank, in his personal capacity or in the capacity of natural guardian of his underage children.

2. Shares held by individual proprietorships which are owned by the investor, or shares held by companies in which the investor is a joint partner.

3. Financial companies in which the investor holds more than 50% of the capital and over which it has control, according to International Accountancy Standards.

4. Any party with economic or legal connections to the investor that allow the latter the exercise of control, according to International Accountancy Standards.

‘Related interests’ signifies interests that allow one party to exercise control or significant influence over another in making financial or operating decisions, or an alliance of a group of parties. The following are considered related interests:

1. Relationship between board members of the company seeking equity acquisition in the bank, and the company’s principal owners and shareholders (that is, those holding more than 5% of the investing company’s capital).

2. Holders of managerial positions in the company seeking equity acquisition in the bank (that is, the company’s chief executive officer and deputies and assistants thereof, the company’s executive directors and those in equivalent positions).

3. Subsidiary companies: companies in which the company seeking equity acquisition in the bank holds more than 50% of the capital, or over which it has control.

4. Sister companies: companies in which the company seeking equity acquisition in the bank holds 20% of the capital, or over which it exercises significant influence.

5. Existence of a declared or undeclared alliance between two parties or a group of parties.

Second: Requirements to be met by the party seeking equity acquisition, for obtaining CBK authorization to hold more than 5% of a Kuwaiti bank’s capital, according to the amended text of Article (57) of Law No. (32) of Year 1968:

Any single person, natural or juristic, Kuwaiti or non-Kuwaiti (other than governmental bodies and bodies with independent or attached budgets) seeking to hold an equity share of more than 5% in any Kuwaiti bank, shall submit to CBK, 60 days ahead of the date of the share acquisition process (calculated from the date of fulfilling all required data and information), an application presenting all data of relevance to the equity acquisition process, and the equity share sought to be held in the bank, along with the following attachments:

1- Statement of personal history and data concerning the party seeking equity acquisition in the bank (name, address, nationality, activity, legal form, educational qualifications and practical experience of the natural person, etc.) and information on other personal aspects, according to a form established for that purpose.

2- Statement of names of all other parties that are shareholders of the bank in which equity acquisition is sought, and that are connected to the party seeking acquisition, whether such connection is through ownership, joint management or related interests (according to the principles and rules approved by CBK Board of Directors regarding the definition of the ownership concept). The statement shall also highlight all details concerning the equity held by the above mentioned parties in the bank, such as the number of shares, the ratio of their value to the bank’s capital, and dates and means of their acquisition (establishment stage, public subscription, purchase from secondary market, debt recovery, inheritance, will, etc.), along with full details on connected parties (name, address, nationality, activity, etc.).

The statement shall also disclose all alliances between the party seeking equity acquisition and any other party, be that alliance declared or undeclared. Where such alliance does not exist, the party seeking equity acquisition in the bank shall submit a statement to that effect, including a commitment to inform CBK of any alliances it may form with any other party in the future.

3- Judicial persons shall submit audited financial statements regarding their financial position, based on the last three years financial statements endorsed by the regulatory authority (if available).

4- Detailed study clarifying the purpose of equity acquisition, and providing information on planned structural changes (financial and administrative) in the bank where equity acquisition is sought, and the justifications for such changes.

5- Any other information requested by CBK upon reviewing each case individually.

Third: Period during which the excess single ownership of a Kuwaiti bank’s capital above the defined maximum limit (5%) shall be disposed of:

1. In cases were exceeding the single ownership limit was unintentional, due to unobtainable CBK’s prior permission, such as in cases were such excess ownership resulted from debt recovery, or was through a will or by inheritance, any excess single ownership (whether direct or indirect) of a Kuwaiti bank’s capital in breach of item (2) under Article (57) of Law No. (32) of Year 1968 and amendments thereof, shall be disposed of within two years as of the date of acquisition. The owner may, during that period, apply for CBK’s permission –according to the established rules- to exceed the 5% ownership limit of the bank capital. It is noted that disposal of excess ownership during the set time limit shall be abided by, in case CBK’s permission is not granted.

2. For other cases of excess single ownership, such as those resulting from purchase or merger operations, etc, the excess single ownership (whether direct or indirect) of a Kuwaiti bank’s capital must be disposed of within a year of the date of acquisition.

In all cases of excess ownership (intentional or unintentional), the concerned shareholder shall not avail of the excess equity in regard to voting rights in the bank’s General Assembly and directing the bank, during the allowed time limit for disposal of excess ownership.

CBK rules and regulation of licensing foreign banks' branches in the state of kuwait

The CBK Board of Directors, in its meeting, on 21 March 2004, has agreed to sanction the principles, rules and regulations for the licensing and operation of foreign banks' branches in the State of Kuwait. These principles, rules and regulations are set in accordance with the authority entrusted to CBK, by virtue of the recently amended Article 56 of Law No. 32/1968 concerning currency, the Central Bank of Kuwait and the organization of the banking business. These principles, rules and regulations represent the minimum requirements for the licensing and operation of foreign banks in the State of Kuwait. According to these principles, rules and regulations, each application presented to the Central Bank of Kuwait (CBK) for opening a foreign bank's branch in the State of Kuwait shall be studied independently, and the decision for its acceptance or rejection shall be taken in light of the conditions prevailing at that time. The CBK shall has no obligation to provide reasons for the rejection of any such application. For details about the conditions and requirements that need to be fulfilled when applying for opening a foreign bank's branch in the State of Kuwait, click on this link below:

Principles, Rules and Regulations for the Licensing and Operation of Foreign Banks' Branches in the State of Kuwait

Application Form for Licensing a Foreign Bank to Open a Branch in the State of Kuwait

No.of
Manual

Name of Section

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Manual

Name of Section

Organizational Structure & Responsibilities

Information Systems Coordination and Supervision Unit:

The mentioned unit shall have the following duties and responsibilities:

1. Carrying out inspections on the information systems at the banking and financial institutions subject to CBK supervision and on the technologies applied in the provision of banking services, along with providing comments on the soundness of financial transactions, in coordination with the Data Processing Department, if need be.

2. Executing the approved programs for information systems development, as well as all activities related to the usage by Supervision Sector staff of computer hardware, systems and programs, along with remedying all problems confronting the system, in coordination with the concerned sections in the Supervision Sector on the one hands and the Data Processing Department and Banking Information Technology Unit on the other.

3. Ascertaining the compliance of the banking and financial institutions subject to CBK supervision with the CBK decisions regarding information technology systems.

4. Determining the requirements and preparing the budget for computer hardware, systems and programs needed by the Supervision Sector, in coordination with the Data Processing Department.

5. Executing and following up the emergency plan for personal computers and information network at the Supervision Sector, so as to allow their recovery in the event of contingency situations, in coordination with the Data Processing Department.

6. Contributing to the preparation of studies and recommendations with regard to the interconnection of networks of automated teller machines in the Gulf Cooperation Countries, and any other similar works, along with participating in the specialized meetings and conferences within that area, in coordination with the Data Processing Department.

7. Participating in the preparation of training plans for the Supervision Sector staff members, regarding computer usage.

8. Any other tasks assigned to that unit

Organizational Structure & Responsibilities

Third Sector

A- The Banking and Financial Statistics Section:

This section assumes the following responsibilities:

1. To receive periodic statistical data from the units subject to the supervision of the Central Bank, and review them to ensure that they are prepared correctly and in accordance with relevant rules and regulations in effect.

2. To prepare consolidated statistical data on the level of each unit of the banking and financial institutions and provide all related sections of the department, and other departments in the Central Bank, where relevant, with these data.

3. To deal with any other matters assigned to the section.

B- The Credit Section:

This section assumes the following responsibilities:

1. To receive credit data from the banking and financial institutions that are subject to the Center-of-Risk System, and to verify that they are prepared according to specified rules in this regard.

2. To provide information on credit clients to banking and financial system units, and to other sections of the Supervision Department, upon their requests, and in accordance with the System of Center-of-Risk requirements.

3. To prepare consolidated statistics and data for Center-of-Bank Risk on the level of banking and financial institutions’ units.

4. To receive bank applications concerning discount and rediscount of commercial papers at the Central Bank, assess their compliance with relevant by-laws and decisions and coordinate with other concerned departments of the Bank in this regard.

5. To deal with any other matters assigned to the section.

C- The Difficult Debts Follow Up Section:

This section assumes the following responsibilities:

1. To receive data and information regarding both the purchased debts and the real-estate portfolio, and to follow up Managing Banks in this regard.

2. To prepare the data and statistics necessary to follow up the payment of the purchased debts (immediate cash payment or scheduling), and prepare periodic reports thereon on a monthly basis, whether for each individual Manager Bank and for all banks altogether.

3. To follow up the bank’s collection of repayments by the clients, enumerate funds transferred from banks to the Central Bank, conduct necessary settlement in this concern to cross check balances from Central Bank books (kept by the Banking Operations Department) with the statements and data submitted by the banks, and to amend any differences.

4. To submit specific proposals concerning the redemption of bonds issued against either the purchased debts or the real-estate portfolio and take the necessary action in this regard in coordination with the other concerned departments of the Bank.

5. To submit proposals concerning the level of return on bonds issued against the purchased debts and the real-estate portfolio, and to review and enumerate amounts due and transferred to banks and to the Kuwait Finance House as a return on these bonds in accordance with the determined rate of return.

6. To follow up with the Kuwait Finance House in respect of actions taken regarding any component of the purchased real-estate portfolio, and to reduce the value of bonds issued against the real-estate portfolio, in accordance with the Executive Regulations of the Law No. (41) of the year 1993.

7. To receive the quarterly report from the Kuwait Finance House concerning developments in the purchased real-estate portfolio and the outcome of its management thereof, and to make necessary arrangements for the re-purchase of the real-estate portfolio back by the Kuwait Finance House after its management thereof ends, in conformity with stipulations of the Executive Regulations of the Law No. (41) of the year 1993.

8. To prepare the Annual Report to be submitted to the Government regarding the purchased debts position in accordance with stipulations of the Article (36) of the Law No. (41) of the year 1993.

9. To coordinate with other concerned departments at the Central Bank in respect to all matters related to the purchased debts and the real-estate portfolio.

10. To coordinate with the on-site supervision section (inspection) regarding inspection operations undertaken on Managing Banks in the area of follow up of purchased debts position, and to verify data submitted to the Central Bank in this regard.

11. To undertake any other duties as may be assigned to the Central Bank in accordance with stipulations of the Law No. (41) of the year 1993 and its Executive Regulations.

12. To deal with any other matters assigned to the section.

Organizational Structure & Responsibilities

Off-Site Supervision Department:

The Off-site Supervision Department follows up the off-site supervisory work conducted on the banking and financial units activities, to ascertain the soundness and stability of the position of the banking and financial system units and that sector as a whole, along with studying applications for the foundation of new banking and financial institutions, and the opening of branches for existing units. It also receives the periodic financial data of units subject to the Central Bank supervision, follows up the necessary works for the issuance of supervisory systems, instructions and regulations to the banking and financial units, studies the banking and financial phenomena that become manifest while monitoring their reflections on the soundness and stability of the banking and financial system units, follows up the execution of the banking risks system and the rules pertaining to its application, along with following up matters of relevance to the application of the Law 41/93 and related laws. Additionally, the department is in charge of contacting external auditors of units subject to the Central Bank supervision if need be.

The department encompasses the following sections and units:

A- Policies and Technical Studies Section:

This section assumes the following responsibilities:

1. To prepare studies on the development of supervisory policies and procedures, in accordance with international developments in this field, and to study any possible reflections of these policies and procedures on the domestic banking and financial conditions, in coordination with the Off-site Surveillance Section and other sections of the Supervision Sector.

2. To study and prepare the Central Bank recommendations on issues concerning banking and supervisory conditions, which are proposed on the agenda of committees and meetings attended by representatives of the Central Bank.

3. To open channels of communications with worldwide supervisory bodies and concerned international institutions, for keeping informed of the latest worldwide trends and developments in the area of supervision on banking and financial activities, and to prepare studies and present suggestions in this regard.

4. To carry out any other tasks assigned to the section

B- Off-Site Surveillance Section:

This section assumes the following responsibilities:

1. To study and analyze the financial data of each of the banking system units so as to ensure the soundness of their financial positions, to monitor phenomena or trends whose emergence may call for issuing relevant recommendations, to prepare periodic reports on the trends in the financial position and result of activities of each unit, to follow up the extent of each units compliance with the provisions of the Law N0 32 of the year 1968 concerning Currency, the Central Bank of Kuwait and the Organization of Banking Business, and amendments thereto, in addition to all supervisory regulations and instructions issued by the Central Bank, along with suggesting adequate penalties to be applied in case of violations.

2. To prepare periodic reports on the development of the aggregate financial position of banks, finance companies, and exchange companies, and to conclude the trends and indicators of these developments and propose remedies and means that limit any negative reflections thereof.

3. To study and analyze data submitted by banks on their average cost of funds and prepare a periodic report on all-banks weighted average cost of funds.

4. To study the closing financial statements of units subject to the Central Bank supervision and prepare the relevant reports needed for the approval of these statements.

5. To study the estimated balance sheet submitted by banks and compare estimates with actual performance, so as to determine discrepancies between them and the causes thereof.

6. To receive the external auditors annual reports on the systems and procedures of internal control followed in all units under CBK Supervision and verify the soundness of their statistical reports. Also, to receive any other reports requested by the Central Bank, study them in participation with other concerned sections, discuss them with the external auditor and prepare reports on any comments or recommendations in this regard.

7. To collect and analyze observations and indicators which foretell general banking phenomena, to study their effect and suggest the supervisory regulations that may remedy any negative reflections thereof, so as to achieve the stability and credibility of the financial and banking system, in cooperation with the policies and technical studies section and the other sections in the Supervision Sector. This task encompasses the following: a) To make necessary arrangements for issuing systems and instructions to the banking and financial units. b) To receive queries from units subject to the Central Bank supervision with regard to applied supervisory systems and procedures, prepare replies thereto, or set meetings in this regard with those in charge of these units if need be. c) Preparing and maintaining instruction manuals concerning supervision on banks, investment companies, finance companies, and money exchange companies.

8. To carryout any other tasks assigned to the section.

C- Banks and Financial Units Affairs Section:

This section assumes the following responsibilities:

1. To prepare studies aimed at determining the market need for new banking and financial units or for new branches of existing units, along with presenting suggestions and recommendations in this regard.

2. To study the applications for the establishment of new banking and financial institutions, and new branches of existing units, according to the rules laid down in this regard. Also, to study applications for the modification of articles of associations and by-laws of the banking and financial institutions subject to the Central Bank supervision.

3. To prepare studies related to applications for merger of units subject to the Central Bank supervision, and to make recommendations in this regard.

4. To study the applications submitted by banks regarding banking services and financial activities carried out by banks, along with the applications for the issuance of bonds by units subject to the Central Bank supervision.

5. To participate with other sections in the Supervision Sector in the preparation of Central Bank recommendations about suggestions presented with regard to banking, financial and commercial legislations and laws and amendments thereto. Also, to propose in coordination with the legal office, the introduction of amendments to applied legislations and laws, in keeping up with the changes and developments in economic and financial conditions on both the domestic and worldwide scenes.

6. To participate with the Off-site Surveillance Section and other sections of the Supervision Sector, in preparing studies on emerging banking phenomena, and monitoring their effect on the safety and soundness of the banking units and the sector as a whole.

7. To organize and maintain registers of banks, investment companies, finance companies, and money exchange companies, and follow up the procedures for entry and modification of data in these records.

8. To carryout any other tasks assigned to the section.

D- The Banking and Financial Statistics Section:

This section assumes the following responsibilities:

1. To receive periodic credit data from units subject to the Central Bank supervision, to review these data so as to ensure the correctness of their preparation and their conformity with the regulations applied in this regard, and to statistically analyze the financial indicators of the banking and financial units based on periodic data and statistics.

2. To prepare aggregate statistics at the banking and financial units under CBK Supervision, and provide them to concerned sections in the department and to other concerned departments in the Central Bank.

3. To prepare all statistical data required for the various studies carried out by the Supervision Sector.

4. To endeavor to develop the means and methods of data transfer from units subject to the Central Bank supervision, so as to enhance the efficiency, accuracy, and security of these data and statistics, in cooperation with the concerned bodies at the Central Bank.

5. To participate with the Off-site Surveillance Section and other sections, in the preparation and development of forms and statistical data presented by the banking and financial units within the context of supervisory regulations and procedures.

6. To carryout any other tasks assigned to the section.

E- Credit Section:

This section assumes the following responsibilities:

1. To receive credit data from the banking and financial institutions subject to the Centralized Risk System, and to review these data to verify their conformity with the rules specified in this regard.

2. To provide information on request from the banking and financial system units and other sections in the supervision sector, at their request, regarding queries on credit clients, according to the requirements of the Centralized Risk System.

3. To prepare aggregate data and statistics for centralized bank-credit risk on the banking and financial units level, and periodically prepare related reports.

4. To follow up the execution of the centralized survey system for clients whose cheques were returned by the banking system, as well as for the system of consumer and installment loans clients against which legal procedures were taken, and periodically prepare related reports.

5. To receive bank applications presented to the Central Bank, for the discounting and rediscounting of commercial papers of commercial papers, to assess the conformity of these applications with the relevant by-laws and decisions, and to coordinate in this regard with other concerned departments in the Central Bank.

6. To receive and prepare the statistics concerning the Debt Purchase Bonds and Real Estate Purchase Bonds Portfolio, to follow up the banks managing this portfolio, and to present required information in this regard to other sections in the Supervision Sector.

7. To carryout any other tasks assigned to the section.

F- Secretarial and Typing Unit:

Carries out secretarial and typing work for the Off-site Supervision Department.

G- Automated Filing and Document Unit:

Carries out all automated and manual filing of documents concerning the Supervision Sector.

Organizational Structure & Responsibilities

On-Site Supervision Department

The On-Site Supervision Department assumes the follow up of on-site supervision over the activities of banking and financial institutions [banks, investment companies (with respect to finance activity), finance companies, exchange companies], to ascertain their abidance by the provisions of relevant laws and supervisory policies and regulations. Additionally, the Department is concerned with following up the combating of money-laundering and suspect operations, and proposing the necessary policies, regulations and instructions in that area. The On-Site Supervision Department encompasses the following sections and units:

A- The Inspection Section:

This section assumes the following responsibilities:

1. To conduct regular comprehensive inspections of the banking and financial institutions [banks, investment companies (with respect to finance activity), finance companies, and exchange companies], in order to ascertain the soundness of their financial positions as well as the extent of their adherence to the provisions of their articles of association and relevant laws, resolutions and instructions. Also, to assess the adequacy of internal control systems in these institutions and verify the soundness of statistical data they submit to the Central Bank, and to evaluate their management performance.

2. To prepare and execute inspection plans within a time schedule for the comprehensive inspection of banking and financial institutions, along with preparing reports on inspections results.

3. To follow up the rectification of remarks and violations revealed by inspections, while observing full coordination with the Off-site Surveillance Section in this regard.

4. To conduct inspection missions with specific objectives, whether to get acquainted with certain problems or phenomena, or to verify remedial measures being taken, or for any other reasons necessitating the carrying out of on-site inspection.

5. To participate with the Off-site Surveillance Section, in coordination with other sections in the Supervision Sector, in the preparation of studies on the general banking phenomena revealed by inspections, to monitor the effect of these phenomena on the objectives and policies of the Central Bank and on banking performance, and to suggest the means for remedying or curbing them.

6. To seek to develop the methods for inspection of banking and financial institutions, in line with relevant worldwide developments.

7. To carryout any other tasks assigned to the section.

B- Anti Money Laundering Section:

This section assumes the following responsibilities:

1. To propose the policies, regulations and instructions issued by the Central Bank with regard to combating money-laundering operations, financing terrorism, counterfeiting, financial and banking fraud, and issues related to security matters in units subject to the Central Bank supervision.

2. To follow up all correspondence received by the Central Bank on the operations mentioned in the above article, including suspicious cases referred by the financial and banking units subject to the Central Bank supervision, and to take necessary measures in this regard.

3. To set up a database of all suspicious cases referred to the central Bank.

4. To follow up notifications of suspicious cases referred to public prosecution by the financial and banking units subject to the Central Bank supervision.

5. To study, analyze and present suggestions regarding types of suspicious operations encountered by the financial and banking system, and to prepare and update a manual on these operations.

6. To coordinate with the Inspection Section within the Department, in the inspection of units subject to the Central Bank supervision to assess the extent of their compliance with the Central Bank instructions on suspicious operations.

7. To follow up all local, regional and international developments in the area of suspicious operations and to suggest necessary action at the domestic level in this regard. In carrying out this task, the section is entitled to make contacts with concerned foreign bodies.

8. To carryout any other tasks assigned to the section.

C- Customer Protection Unit:

This section assumes the following responsibilities:

1. Receive and study the complaints handed to the Central Bank of Kuwait by the customers of the units that are under the supervision.

2. Observe abnormal practices that are resulted by the interpretation of those complaints, analyzes its causes and looks for solutions to those complaints.

3. Suggests tools for which the units can spread awareness about certain issues to the customers of units under the supervision.

4. Suggests the enforcements of the required penalties on the units that are in violation and takes charge into enforcing those penalties.

5. Establishes a database that involves the quantity and the nature of the complaints and what procedures were taken to find a solution.

6. Cooperates with the filed inspection teams to examine the complaints and to follow up the procedures that were taken as a result of those complaints.

7. To do any other work assigned to the unit.

D- The Secretarial and Typing Unit:

Carries out secretarial and typing work for the On-site Supervision Department.

E- Automated Filing and Document Unit:

Carries out all automated and manual filing of documents concerning the On-site Supervision Department.

Organizational Structure & Responsibilities

The Supervision Sector encompasses the On-Site Supervision Department which consists of three sections and a secretarial and typing unit, and the Off-Site Supervision Department which consists of four sections and a secretarial and typing unit along with the Automated Filing and Document Unit,and Information Systems Coordination and Supervision Unit as follows:

On-Site Supervision Department

• Inspection Section
• Anti-Money Laundering Section
• Customer Protection Unit
• Secretarial and Typing Unit
• Automated Filing and Document Unit

Off-Site Supervision Department

• Policies and Technical studies Section
• Off-Site Surveillance Section
• Banks and Financial Units Affairs Section
• Banking and Financial Statistics Section
• Credit Section
• Secretarial and Typing Unit
• Automated Filing and Document Unit

Information Systems Coordination and Supervision Unit

The functions and tasks of the Supervision Sector, in order to achieve the above mentioned objectives, include the following:

1. Prepare prudential regulations issued by CBK for all units under its supervision;

2. Study, and analyze the applications of new entries in the banking and financial system and make recommendations in that regard;

3. Suggest prudential proposals and recommendations that are deemed necessary to remedy the emerging problems that face the units subjected to CBK supervision, and to follow-up the implementation thereof;

4. Endeavor to develop and organize both the banking & financial systems, and coordinate between them in such a way that would enhance their role in the national economy, and to direct the available resources towards optimum utilization;

5. Analyze the data and information forwarded to CBK from the supervised units; and to present recommendations and proposals relevant to supervisory functions thereon;

6. Study the banking services and products offered to the public by the banking and financial units, and to put forward prudential proposals and recommendations required for promoting such services;

7. Conduct inspection on all units under CBK supervision [banks, investment (with respect to finance activity), finance and exchange companies]; and decide on the extent of their compliance with CBK law provisions and other related laws and resolutions, along with the regulations, instructions and resolutions issued by the Central Bank in relation with the organization of banking and financial business and supervision thereon;

8. Follow-up the activities of the monetary and financial market, and study the possibility of developing such market in collaboration with the other departments concerned at the CBK, and to put forward the proposals and recommendations that are deemed necessary for incorporating new financial and banking institutions;

9. Follow-up the developments in interest rates in the local and international markets; study the impact of such developments on flow of funds; and to present the proposals and recommendations that are deemed necessary in this regard together with the other departments concerned at the Central Bank;

10. Prepare the forms and statements relevant to the statistical data required to be presented by supervised units to the Central Bank, and lay down the definitions and explanatory notes related to such data;

11. Assist the supervised units toward the optimum application of regulations, by-laws, resolutions, definitions, explanatory notes and forms issued by the Central Bank in connection with the organization of banking and financial business and supervision thereon;

12. Study and follow-up the developments introduced in the Banking Supervisory Regulations in the other countries Study and follow-up all developments in supervisory functions and regulations issued or recommended by international supervisory agencies in other countries to promote the supervisory procedures and controls adopted over the banking and financial institutions operating in the State of Kuwait.

13. Upgrade supervisory procedures and policies to be in line with international standards.

14. Establish Credit Risk Center.

Major Objectives of the Supervision Sector

The Supervision Sector at the Central Bank of Kuwait (CBK) assumes the responsibility of following-up the implementation of the provisions of CHAPTER THREE of the Central Bank of Kuwait Law No. 32 of the year 1968, amended under Decree Law No. 130 of the year 1977, and all relevant Regulations and Instructions issued by the Central Bank of Kuwait. The main purpose thereof is to ensure the soundness and stability of the banking and financial system in order to safeguard depositors, and insure that banking and financial units abide by relevant laws, resolutions and CBK instructions leading to proper application of monetary and credit policies.

رقم الجزء

اسم القسم

المقدمة

فهرس الجزء الأول

1

نظام الأخطار المصرفية والقواعد الصادرة في شأن تطبيقه

2

القواعد الخاصة بنظام السيولة والتعليمات الصادرة بشأن أوضاع السيولة في الجهاز المصرفي

3

قواعد وإجراءات فتح فروع مصرفية

4

الحدود القصوى للتركز الائتماني

5

أسس إعداد البيانات المالية الختامية وسياسة التصنيف

6

القرارات الصادرة في شأن الحدود القصوى لأسعار الفائدة

7

نظام خصم وإعادة خصم الأوراق التجارية

9

الضوابط والتعليمات بشأن تقديم البنوك المحلية تسهيلات إئتمانية بالدينار الكويتي لغير المقيم

10

التعليمات الصادرة بشأن ترشيد وتنظيم السياسة الائتمانية لدى البنوك

11

كفاية رأس المال

فهرس الجزء الثاني

13

قواعد وأسس منح البنوك للقروض الإستهلاكية، وغيرها من القروض المقسطة

15

المعايير والضوابط التي تنظم علاقة البنوك بعملائها في مجال تقديم الخدمات المصرفية المختلفة

16

التعليمات الصادرة من البنك المركزي بشأن غسيل الأموال

17

الإجراءات التنفيذية لأحكام البند (2) من المادة (57) بشأن زيادة نسبة ملكية الشخص الواحد عن 5% من رأس مال البنك

18

تعليمات بشأن البيانات المعدة لأغراض أسواق الأوراق المالية المدرجة فيها أسهم البنك

19

االتعليمات الصادرة في شأن شراء وبيع أوراق النقد الخليجية

20

نظام الحصر المركزي للعملاء الذين أقفلت حساباتهم بالبنوك المحلية

22

تعليمات بشأن نسبة العمالة الوطنية في البنوك المحلية

23

تعليمات بشأن محافظة البنوك على سرية ما لديها من معلومات وبيانات خاصة بعملائها

26

التعليمات الخاصة بشأن مراقبي الحسابات

30

تعليمات بشأن التسهيلات الممنوحة لأعضاء مجلس الإدارة

33

تعليمات بشأن إخطار البنك المركزي بأي جرائم اختلاس تقع على أموال البنوك

34

التعليمات الخاصة بالبطاقات الإئتمانية المصدرة من البنوك المحلية

36

متفرقة أخرى

37

قانون الإستقرار المالي وتعزيز أوضاع البنوك

الباب الثالث: البيانات والإحصاءات التي تقدمها البنوك المحلية للبنك المركزي بصفة دورية

رقم الجزء

اسم القسم

الجزء الأول

المقدمة

فهرس الجزء الأول

1

البيانات والإحصاءات التي تقدمها شركات الإستثمار إلى بنك الكويت المركزي بشكل دوري

2

إدارة المحافظ وتسويق وحدات الصناديق

3

الأسس والضوابط الخاصة بشراء شركات الاستثمار الخاضعة لرقابة البنك المركزي لأسهمها

4

التعليمات الصادرة من البنك المركزي بشأن غسيل االأموال: (شركات تقليدية/إسلامية)

5

تعليمات بشأن ترشيد وتنظيم السياسة الإئتمانية لدى شركات الإستثمار (شركات تقليدية)

6

الحدود القصوى للتركز الإئتماني (شركات تقليدية)

7

قواعد وأسس منح شركات الإستثمار للقروض الإستهلاكية وغيرها من القروض المقسطة (شركات تقليدية)

9

نظام مركزية المخاطر (الشركات التي تسمح أغراضها بالإقراض) (شركات تقليدية)

10

تعليمات بشأن مراقبي الحسابات: (شركات تقليدية/إسلامية)

12

تعليمات بشأن ضرورة عرض الكتب المرسلة من المحافظ إلى رؤساء مجالس إدارات الشركات في شأن النتائج النهائية للتفتيش على مجلس إدارة تلك الشركات، في أول إجتماع لاحق لتاريخ إستلام الكتب. (شركات تقليدية/إسلامية)

13

تعليمات بشأن ضرورة إحاطة بنك الكويت المركزي علماً قبل الشروع بإجراء أية إتصالات مع سلطات رقابية مالية أو مصرفية في دول أخرى. (شركات تقليدية/إسلامية)

14

نظم الرقابة الداخلية: (شركات تقليدية/إسلامية)

15

تعميم رقم (2/رس/35/1997) بشأن إلزام شركات الإستثمار بالحصول على موافقة مسبقة من بنك الكويت المركزي على أية تعديلات مقترحة على النظام الأساسي للشركة قبل العرض على الجمعية العامة.

17

تعليمات بشأن نسبة العمالة الوطنية في شركات الإستثمار: (شركات تقليدية/إسلامية)

الجزء الثاني

فهرس الجزء الثاني

1

تعليمات بشأن أعضاء هيئة الرقابة الشرعية

5

الحدود القصوى للتركيز التمويلي (شركات إسلامية)

رقم الجزء

اسم القسم

مقدمة

الفهرس

الباب الأول: إخضاع شركات الصرافة لرقابة بنك الكويت المركزي، أسس وضوابط تأسيس شركات صرافة جديدة:

1

القرار الوزاري بشأن إخضاع شركات الصرافة لرقابة بنك الكويت المركزي ومذكرته الإيضاحية.

2

أسس وضوابط تأسيس شركة صرافة جديدة، أو تحويل رخصة فردية إلى شركة.

الباب الثاني: تعليمات التسجيل في سجل شركات الصرافة:

1

تعليمات بشأن موافاتنا بأسماء ومؤهلات وخبرات السادة الذين يشغلون وظائف (المدير العام - المتداول - المدير المالي - أو المحاسب المسؤول) لتسجيلها في سجل شركات الصرافة.

2

موافاتنا ببيانات لتحديث سجل شركات الصرافة (وفقاً للنموذج المرفق).

3

تعليمات بشأن صدور قرار المحافظ رقم 1/166/1995 بتاريخ
1995/7/4 في شأن إضافة صفحة جديدة تضاف إلى صفحات سجل شركات الصرافة لدى البنك المركزي تحت رقم (13) تتضمن أسماء الشركاء وحصصهم بشركات الصرافة.

4

نموذج طلب تسجيل في سجل شركات الصرافة.

5

نموذج طلب تعديل بيانات في سجل شركات الصرافة.

الباب الثالث: التعليمات والضوابط الإشرافية والرقابية وتنظيم العمل بشركات الصرافة:

1

تعليمات بشأن عدم لجوء شركات الصرافة إلى سداد مديونياتها تجاه طرف آخر عن طريق استخدام عمليات القطع الأجنبي مع طرف ثالث.

2

تعليمات بشأن ضرورة قيام شركات الصرافة بالالتزام بالإعلان فقط عن الأعمال المصرح لها بمزاولتها والواردة بالعقد الأساسي.

3

إبلاغ شركات الصرافة بقرار مجلس الوزراء رقم 40/1987، والذي يقضي بضرورة تطبيق المادة (15) من قانون هيئة المعلومات المدنية.

4

التعليمات الخاصة بالمعالجة المحاسبية لتأمينات عملاء شركات الصرافة عن التعامل في العقود الآجلة للنقد الأجنبي والمعادن الثمينة.

5

نموذج عقد متاجرة بالعملات الأجنبية والمعادن الثمينة.

6

تعليمات بشأن نظام التعامل المباشر بين بنك الكويت المركزي، وشركات الصرافة في العملات الأجنبية:

أ - التعليمات.
ب - ضرورة توفير الضمانات الكافية لقيمة الصفقات المراد شراؤها قبل القيام بعملية الشراء.
ج - التأكيد على شركات الصرافة الراغبة في التعامل المباشر في العمليات الأجنبية مع بنك الكويت المركزي بضرورة توفير الضمانات الكافية بقيمة الصفقات المراد شراؤها في موعد أقصاه يوم تنفيذ العملية.
د - التأكيد على شركات الصرافة بضرورة الالتزام بتعليمات البنك المركزي بخصوص نظام التعامل المباشر بين بنك الكويت المركزي وشركات الصرافة.
هـ - ضوابط التعامل بالعملة الأجنبية مع شركات الصرافة.
و - تعليمات بشأن بدائل السداد المقابل لكافة عمليات الشراء بشكل فوري.

7

تعليمات بشأن ترتيبات شراء و بيع أوراق النقد الصادرة من دول مجلس التعاون لدول الخليج العربية وذلك بالعملات التالية :

1) الدينار البحريني.
2) الريال العماني.
3) الدرهم الإماراتي.
4) الريال القطري.

8

التعليمات الخاصة بشأن ضرورة رجوع شركات الصرافة لبنك الكويت المركزي، لأخذ الموافقة المسبقة قبل المباشرة في افتتاح مقار الأعمال في أيام الجمع.

9

التعليمات الصادرة بشأن تسوية أرصدة الحسابات الجارية للشركاء:

أ - تعليمات بشأن ضرورة تسوية أرصدة الحسابات الجارية المدينة للشركاء.
ب - تعليمات بشأن ضرورة تصفية الحسابات الجارية الدائنة للشركاء.

10

التعليمات الخاصة بشأن كيفية التعامل مع المراسلات التي ترد من قبل جهات أجنبية، التي تتضمن عروضاً للقيام بصفقات تجارية أو مصرفية أو مالية مقابل أرباح وعمولات مجزية.

11

إحاطة بنك الكويت المركزي بأية معاملات مالية لشركات الصرافة مع أية مؤسسة مالية عالمية تتعرض لأزمة مالية حادة.

12

التعميم الخاص برصد حجم المعاملات المالية بين شركات الصرافة والمؤسسات المالية العالمية، التي تتعرض لأزمة مالية حادة.

13

التعليمات الخاصة بأهمية وجود نظام رقابة داخلي مكتوب ومعتمد من قبل الإدارة العليا للشركات.

14

تعليمات بشأن عدم السماح لشركات الصرافة بإدراج مبالغ الشيكات والحوالات غير المحصلة من عملاء الشركة، التي انقضى على إصدارها أكثر من خمس سنوات ضمن بيان الإيرادات والمصروفات إلا بعد مرور خمسة عشر عاماُ .

15

ضرورة قيام شركات الصرافة بتزويد معهد الدراسات المصرفية بالبيانات اللازمة بشأن مستوى العمالة لديها فور طلبها من قبل المعهد مباشرة.

16

تعليمات بشأن ضرورة قيام الشركة بعرض الكتب المرسلة إليها من المحافظ بشأن النتائج النهائية للتفتيش على كافة الشركاء الرئيسيين في الشركة، وذلك فور استلام الشركة لتلك الكتب.

17

تعليمات بموافاتنا بنسخة من كافة الاتفاقيات المبرمة بين شركات الصرافة مع البنوك أو المؤسسات المالية الأجنبية.

18

خطة إدارة مشروع عام 2000:

أ - تعميم بشأن ضرورة موافاتنا بتقرير ربع سنوي موضحاً به التطورات التي تم إنجازها في سبيل تهيئة نظم المعلومات لدى شركات الصرافة، بما يتواءم متطلبات عام 2000، وذلك اعتباراً من 30/9/1997.
ب - الإجراءات التي يتعين مراعاتها بشأن تحقيق المواءمة مع متطلبات عام 2000 م في الوقت المناسب، وذلك تعزيزاً لتعميم البنك المركزي رقم (2/رص/44/97) المؤرخ في 18/8/1997 .
ج - تعميم بشأن ما تحرر من المجلس المشترك لعام 2000 المنبثق عن بنك التسويات الدولي، بشأن الدليل الإرشادي للتقييم المستقل للاستعداد لعام 2000 .

19

تعميم بضرورة العمل على إعداد خطط للطوارئ لمواجهة مشكلة عام 2000 مرفقاً بها :

1) ورقة بشأن عملية اختبار مدى الاستعداد لعام 2000 والذي حرره المجلس المشترك لعام 2000 المنبثق عن بنك التسويات الدولي.
2) الإطار العام الاسترشادي لخطة طوارئ عام 2000 الذي يتعين وضعه في موعد أقصاه الربع الثاني من عام 1999، مع تزويدنا بنسخة من تلك الخطة.

20

ضوابط ومعايير افتتاح الفروع لشركات الصرافة.

21

تعميم بضرورة توفير محاسب أو محاسبين ذوي مؤهلات علمية وخبرة عملية مناسبة، بما يكفل الالتزام التام بتعليمات بنك الكويت المركزي وكافة القوانين والقرارات الوزارية ذات العلاقة.

22

تعليمات بشأن عدم قيام شركات الصرافة بأية عمليات من شأنها أخذ مراكز بالعملات الأجنبية، أو المضاربة في أسواق العملات والسلع والمعادن الثمينة سواء لحساب الشركة أو لحساب الغير، وموافاتنا ببيان ربع سنوي عن أوضاع حسابات شركات الصرافة لدى أية من المؤسسات المالية والمصرفية وذلك وفقاً للنموذج المرفق.

23

تعميم بشأن دليل الإرشادات العامة لأنظمة الرقابة الداخلية لدى شركات الصرافة.

24

تعميم بشأن اتخاذ الخطوات اللازمة لتسهيل بيع وشراء اليورو إعتباراً من 1/1/2002.

25

تعميم بشأن تحديد نسبة العمالة الوطنية في الوحدات الخاضعة لرقابة البنك المركزي.

رقم الجزء

اسم القسم

المقدمة

فهرس الجزء الأول

1

نظام الأخطار المصرفية

2

القواعد الخاصة بنظام السيولة والتعليمات الصادرة بشأن أوضاع السيولة في الجهاز المصرفي

3

فروع البنوك الإسلامية

4

ضوابط التركز في التمويل

5

سياسة تصنيف عمليات الاستثمار والتمويل للعملاء

6

ضوابط وقواعد الاستثمار المباشر

7

تعليمات بشأن سياسة الاستثمار المالي

8

قواعد شراء البنوك الإسلامية لأسهمها

9

تعليمات بشأن نشاط التمويل

11

معيار كفاية رأس المال

12

القواعد والضوابط الخاصة بالخبرة المطلوبة وفقاً للمادة (68) من القانون رقم 32 لسنة 1968 في شأن أعضاء مجلس الإدارة والجهاز التنفيذي

فهرس الجزء الثاني

13

قواعد وشروط تعيين واختصاصات هيئة الرقابة الشرعية في البنوك الإسلامية

14

تعليمات بشأن نظم الرقابة الداخلية وإدارة المخاطر

15

علاقة البنوك مع عملائها

16

مكافحة عمليات غسيل الأموال وتمويل الإرهاب

18

تعليمات بشأن مراقبي الحسابات

20

نظام الحصر المركزي لعملاء الشيكات المرتجعة

21

تعليمات بشأن البطاقات الإئتمانية المصدرة من البنوك الإسلامية

24

تعليمات بشأن نسبة العمالة الوطنية لدى البنوك المحلية

31

تعليمات بشأن عمليات السطو والإختلاس

33

تعليمات متفرقة أخرى

الباب الثالث: البيانات والإحصاءات الدورية للبنوك الإسلامية

No.of Manual

Name of Section

Introduction

1

Center of Risks system and Regulations Issued for its Implementation

2

Rules And Regulations Concerning Liquidity System

3

Rules And Procedures for Opening Banks' Branches

4

The Maximum Limits for Credit Concentration

5

Basis of Preparing the Closing Financial Statements and Policy of Credit Facilities Classification

6

Resolutions Issued in Respect of Interest Rate Ceilings

7

Discount And Rediscount System of Commercial Papers

8

Instructions Regarding Banks' Purchase of Their Own Shares

9

Rules And Regulations Concerning Local Banks' Extension of KD Credit Facilities to Non-Resident Customers

10

Instructions Issued In Connection With The Rationalization And Organization Of Banks Credit Policy

11

Capital Adequacy

12

Rules And Regulations For The Experience Required For Members Of The Board Of Directors And The Executive Staff, As Per Article (68) Of Law No.(32) Of The Year 1968

13

Instructions Concerning Rules and Regulations for Banks' Extension Of Consumer Loans & Other Installment Loans

14

Instructions Issued In Connection With The Organization Of Local Banks Investment Policy

15

Standards and Controls Regulating the Relation of Banks to their Customers with regard to the Extension of Banking Services

16

Instructions Issued by Central Bank of Kuwait regarding Money Laundering

17

Executive Procedures of the Rules of Item (2) of Article (57) Concerning the Excess of any one Single Person's ownership over 5% of the Capital of a Bank

18

Instructions Concerning Financial Data Prepared to Stock Exchanges Purposes Where a Bank's Shares are Listed

19

Instructions Concerning Buying and Selling GCC Currency Notes

20

Central Registration system for Customers whose Accounts at Local Banks Were Closed

21

Instructions Concerning the Determination of collaterals Acceptable to the central Bank Against its loans to Banks

22

Instructions Concerning the Ratio of National Manpower in Local Banks

23

Instructions Regarding Banks To Maintain The Confidentiality Of Information And Data Concerning Their Customers

24

Instructions Allowing Banks to Continue Holding the Premises Constructed as Their Head Offices, Until Disposal Thereof

25

Instructions Concerning Banks Dealing in Foreign Exchange Transactions

26

Instructions Concerning External Auditors

27

Instructions to Banks on the Necessity of Notifying the Central Bank of Kuwait before proceeding with any communication with regulatory Financial or Banking Authorities in other countries

28

Instructions to Banks Concerning Internal Control Systems

29

Instructions To Banks Concerning Monitoring The Size oF Their Financial Transactions With Banks And Financial Institutions Facing Severe Financial Crisis

30

Instructions Concerning Credit Facilities Extended To Board Directores

31

Instructions Prohibiting Banks From concluding Agreements Amongst them that may prejudice the principle of competition

32

Instructions concerning Banks' Budgets and future Business Plans

33

Instructions to Notify the Central Bank of any Embezzlement of Banks's Funds

34

Instructions Concerning Credit Cards Issued By Local Banks

35

Organization Of Portfolio Management

37

The Law on Financial Stability and Enhancement of Banks Conditions

No.of Manual

Name of Section

Introduction

Summary of the Rules of Low No.30 of the year 2003 on adding aspecial section on Islamic banks to the Third Chapter of Low No. 32 of the year 1968 concerning Currency, the Central Bank of Kuwait and the Organization of the Banking Business.

1

Center of Risks System.

2

Rules and Regulations Concerning Liquidity System.

3

Rules and Regulations for opening Islamic Banks Branches within and outside Kuwait.

4

Controls for Finance Concentration.

5

Classification Policy for Investment and Finance Transactions with Customers.

6

Rules and Regulations for Direct Investment.

7

Instructions Concerning Financial Investment Policy.

8

Regulations Governing Islamic Banks Purchase of Their Own Shares.

9

Instructions Concerning Finance Activity.

10

Rules and Regulations for Consumer Finance Transactions and other Personal Installment Finance Transactions.

13

Shareea'a Supervisory Board.

14

Instructions Concerning Internal Control System and Risk Management.

15

Banks Relationship with their Customers.

16

Combat of Money Laundering and Terror Financing Transactions.

17

The Regulations Organizing the Management of Third Parties Portfolios with Islamic Banks.

18

Instructions Concerning External Auditors.

19

Circular Concerning Investment Placements with Both Local and Foreign Banks and Financial Institutions.

20

Central Registration System for Customers of Bounced Cheques.

21

Instructions Concerning Credit Cards Issued by Islamic Banks.

22

Instructions Concerning the Buying and Selling of GCC Currency Notes.

23

The Accounting Treatment of Goodwill.

24

Instructions Concerning the Ratio of National Manpower at Local Banks.

25

Instructions Concerning Islamic Banks Foreign Exchange Transactions.

26

The Bases of Preparing Closing Financial Data of Islamic Banks.

27

Instructions Regarding the Necessity of Notifying the Central Bank before Proceeding with any Communications with Regulatory Financial or Banking Authorities in Other Countries.

28

Instructions Concerning Post-Dated Cheques.

29

Instructions Concerning the Financial Data Submitted to Stock Exchanges Where a Bank's Shares are Listed.

30

Instructions Concerning Islamic Banks Budgets and Future Business Plans.

31

Instructions Concerning Robbery and Embezzelment Acts.

32

Executive Procedures of the Rules of Item (2) of Article (57) Concerning the Increase of Ownership Per Persone for 5% of the Bank Capital.

33

Other Miscellaneous Instructions.