CBK Instructions for Islamic Banks

Introduction

First: The Law:
Summary of the Rules of Law No.30 of the year 2003 on adding a special section on Islamic banks to the Third Chapter of Law No. 32 of the year 1968 concerning Currency, the Central Bank of Kuwait and the Organization of the Banking Business.

1. Center of Risks System.
2. Rules and Regulations Concerning Liquidity System.
3. Rules And Regulations for opening Islamic Banks Branches within and outside Kuwait.
4. Controls for Finance Concentration.
5. Classification Policy for Investment and Finance Transactions with Customers.
6. Rules And Regulations for Direct Investment.
7. Instructions Concerning Financial Investment Policy.
8. Regulations Governing Islamic Banks Purchase of Their Own Shares.
9. Instructions Concerning Finance Activity.
   -More Instructions available under “CBK Instructions for Credit Information Companies”.
10. Rules and Regulations for Consumer Finance Transactions and other Personal Installment Finance Transactions.
    -More Instructions available under “CBK Instructions for Credit Information Companies”.

12. Rules And Regulations For The Experience Required For Members Of The Board Of Directors and The Executive Staff, as Per Article (68) Of Law No.(32) Of The Year 1968
    a. Nomination Form for the Position of an Independent Board Member
    b. Nomination Form for the Position of Chief Executive Officer or His Deputy or Assistant
13. Sharee'a Supervisory Board.
14. Instructions Concerning Internal Control System and Risk Management.
15. Banks Relationship with their Customers.
16. Anti-Money Laundering and Combating the Finance of Terrorism (AML/CFT).
17. The Regulations Organizing the Management of Third Parties Portfolios with Islamic Banks.
18. Instructions Concerning External Auditors.
19. Circular Concerning Investment Placements with Both Local and Foreign Banks and Financial Institutions.
20. Central Registration System for Customers of Bounced Cheques.
21. Instructions Concerning Credit Cards Issued by Islamic Banks.
22. Instructions Concerning the Buying and Selling of GCC Currency Notes.
23. The Accounting Treatment of Goodwill.
24. Instructions Concerning the Ratio of National Manpower at Local Banks.
25. Instructions Concerning Islamic Banks Foreign Exchange Transactions.
26. The Bases of Preparing Closing Financial Data of Islamic Banks.
27. Instructions Regarding the Necessity of Notifying the Central Bank before Proceeding with any Communications with Regulatory Financial or Banking Authorities in Other Countries.
28. Instructions Concerning Post-Dated Cheques.
29. Instructions Concerning the Financial Data Submitted to Stock Exchanges Where a Bank's Shares are Listed.
30. Instructions Concerning Islamic Banks Budgets and Future Business Plans.
31. Instructions Concerning Robbery and Embezzlement Acts.
32. Executive Procedures of the Rules of Item (2) of Article (57) Concerning the Increase of Ownership Per Person for 5% of the Bank Capital.
33. Other Miscellaneous Instructions.

36. Instructions for Regulation of the Electronic Payment of Funds.
37. - More Instructions available under “Regulatory Instructions for EPIPs and EPAs”.

38. Sustainable Development and Sustainable Finance