Title: CMA Circular No. (18) of 2025 Regarding the Supervisory Guidance on Business Risk Assessment

"Circular to All Licensed Persons"
Chairman of the Board of Directors
Greetings,

In order to ensure full understanding and the required compliance of the financial and banking institutions with the requirements of business risk assessment related to their activity and the activity of their clients, and within the scope of the requirements of risk assessment and implementation of risk-based approach in accordance with the Financial Action Task Force (FATF) recommendations, and the provisions of Article (4) of Law No. 106/2013 Regarding  Anti-Money Laundering and Combating the Financing of Terrorism, Item (1) of the instructions of the Central Bank of Kuwait, Article (2-3) of Module Sixteen of the Executive Bylaws of the Capital Markets Authority (CMA) Law, and Item (8) of the Resolution of Insurance Regulatory Unit, and in order to assist the financial and banking institutions in the determination and assessment of such risks, you will find attached the supervisory guidance directed to all units subject to the supervision and regulation of the CMA for your consideration, in which it is required to conduct a systematic assessment for the risks of money laundering, terrorism financing, and proliferation financing of the weapons of mass destruction associated with your activities, your client base, and the products and services that you provide, which shall determine the due diligence procedures to reduce their impact and reflection on the risks expected to occur in the financial and banking institutions.

Moreover, we would like to note that this will be subject to the CMA’s follow-up during the inspection tasks.

Emad Ahmed Tifouni
Issued on: 07/07/2025.

Copy of the Official Document

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