Kuwait- 'CBK' Mulls Strict Procedures Over Guarantees To Obtain Loans
(MENAFN- Arab Times) The Central Bank of Kuwait (CBK) will soon implement strict procedures in the evaluation of guarantees submitted by loan applicants to local banks, reports Al-Jarida daily quoting sources.
Sources clarified the abovementioned step is one of the anti-money laundering measures being taken by the Central Bank, especially after discovering that some people deposit money in the banks to be used as guarantee for loans to obtain money from the Kuwaiti stock market, away from the control of CBK. Sources said loans are usually used for the purchase of shares, which will be sold later to make them appear 'clean' without legal impurities. Sources added this is just one of the complicated methods utilized by those involved in money laundering.
Meanwhile, sources revealed the CBK has taken strict procedures against many individuals and institutions, such as freezing their accounts due to suspicious operations. Sources confirmed the CBK has instructed the banks to get details of money transactions, along with the ceiling of the amount that can be remitted.
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