The Central Bank of Kuwait has informed banks that some important posts in local banks should be made redundant. Central Bank's suggestion is that Kuwait should strengthen the position of Director of Anti-Money Laundering and Terrorism Financing Unit. The Central Bank has reminded regional banks to emphasize the importance of localizing sensitive banking jobs, including senior and middle management, and make necessary efforts to achieve this.

The central bank had already instructed local banks to avoid holding non-Kuwaitis in leadership positions. Although the deadline for its implementation has been extended several times, reliable sources state that it is unlikely to go beyond 2023. While some banks have responded to the Central Bank's instructions that Kuwaitization has been completed, others have said that the process is still ongoing.

Notably, an independent unit has been appointed in each department to monitor the implementation of the Bank's Anti-Money Laundering Policy. It reports directly to the bank's chairman and is responsible for implementing the bank's policies and procedures to prevent money laundering and terrorist financing. Sources explained that the central bank's request to make Kuwaiti the post of anti-money laundering unit director in banks is aimed at ensuring that banking positions, especially middle and top executive positions, are filled by Kuwaitis.


.This results in fierce competition among them to meet the requirements and may involve contacting some talent in other banks with additional financial incentives to induce them to leave their banks. All banks are trying to raise Kuwaitization rates in various sectors, but basically, barriers to abundant supply cannot be ignored, especially to fill sensitive banking and supervisory jobs. Hard-to-get-over challenges include the central bank's own conditions for admitting candidates to certain jobs for failure to meet specified conditions. This reduces banks' opportunities for choice and the ability to replace certain departments with targeted supervisory speed. From April 2021, the central bank has requested banks to provide a plan approved by their boards of directors showing a clear path to reach a Kuwaitization rate of at least 70 per cent in senior and middle management, not just at the level.