Regulatory Alerts2019-05-20
Instructions Concerning Internal Control Systems and Risk Management
The Central Bank of Kuwait mandates all registered Islamic banks to establish and maintain adequate internal control systems commensurate with their size, operations, and risk profiles. The directive outlines comprehensive requirements for accounting records, management information systems, organizational structure, and risk mitigation across credit, liquidity, foreign exchange, and operational exposures. Banks must annually submit external auditor evaluation reports, known as Management Letters, to verify system adequacy and address inspection-identified gaps while aligning with Basel Committee guidelines.
Share