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Accounts and customers existing prior to the implementation of this Law shall be subject to
due diligence measures under this Article at appropriate times and based on materiality and
risk, or as prescribed by supervisory authorities.
Financial institutions and designated non-financial businesses and professions shall review
existing records and documents on an ongoing basis to ensure that any information collected
is kept up-to-date and relevant.
Financial institutions and designated non-financial businesses and profession may rely on
third parties to perform some elements of the due diligence process as prescribed by
Executive Regulation.
Article 6
Provisions of Articles 4, 5 and 11 of this Law apply to real estate agents and brokers when
they are involved in transactions concerning the buying or selling of real estate.
Article 7
The Executive Regulation will prescribe the measures to be taken by financial institutions
before entering into a cross-border correspondent banking or other similar relationship, in
addition to applying ordinary due diligence measures as prescribed under Article 5.
Article 8
No shell bank may be licensed or operate in the State of Kuwait.
Financial institutions shall not enter into or continue a correspondent or business relationship
with a shell bank or a correspondent financial institution in a foreign country that allows its
accounts to be used by a shell bank.
Article 9
Financial institutions that engage in wire transfers shall obtain information on the originator
and recipient when carrying out such transactions and ensure that such information remains
with the wire transfer or related message throughout the payment chain. A financial
institution seeking to order a wire transfer that is unable to obtain such information shall not
execute the transfer.
Article 10
Financial institutions and designated non-financial businesses and professions shall:
a. Establish internal policies, procedures, systems, and controls, including
appropriate compliance management arrangements, and adequate screening
procedures to ensure high standards when hiring employees;