Review of Operations - Commercial Bank of Kuwait

from the businesses, governance and control functions by reporting to the Audit Committee of the Board. InternalAudit activities are redesigned to provide reasonable assurance that resources are adequately protected, significantfinancial, managerial and operating information is materially complete, accurate and reliable, and employees’ actionsare in compliance with the bank’s policies, standards, procedures, and applicable laws and regulations. Auditsperformed during 2013 covered various business and operational areas including corporate credit and Retail bankingloans, Risk management, compliance activities, Core banking systems and E-channels. Internal audit achieved auditplan by following the best management practices of audits through certain achievements to improve the quality of theaudit function as the following:- Implementing a new audit tool “ACL” which is specifically designed to help Audit groups to perform in-depth analysisof data with ease, quickly find exceptions and controls breakdowns. ACL developed mainly to improve the quality ofaudit function and audit observations.- Automation of Audit processes (planning, scheduling, time management, working papers, reporting, and issuestracking) which save time and utilizes audit resources efforts through implementing “Auto Audit” software..- Internal Audit also provides the management with advisory services for several issues related to financial statements,operations, business process and corporate policies and procedures.COMPLIANCE & AML DEPARTMENT |Compliance & AML Department is composed of the following units:1- Compliance Unit is responsible for taking the procedures that ensure the Bank’s compliance with the domesticlegislative & regulatory requirements in all aspects associated with banking business so that the Bank can avert anyrisks that may result from non-compliance with such requirements.2- AML Unit is assigned the implementation of the prevailing legislations and existing regulatory instructions for AMLas well as the implementation of the international standards in this area. The Bank endeavors to take all the requiredaction so as not to be used in channeling suspicious transactions.3- Disclosure Unit verifies that disclosure is made to the concerned entities as per the prevailing regulatory lawsand instructions.4- Follow-Up Unit is responsible for monitoring all remarks and observations being raised by regulatory authorities andinternal and external auditors to ensure that necessary corrective procedures of these remarks are being taken.The Bank endeavored to equip and provide the Department with highly qualified staff members and resources toavert financial and moral risks that may arise from non-compliance with legal & regulatory requirements with a view tosafeguard the Bank and the interests of its shareholders and stakeholders.Compliance & AML Department coordinates and cooperates with all departments Bank wise on the one hand and withthe Central Bank of Kuwait’s officials on the other hand in order to ensure that legal and regulatory requirements arein place and are implemented by the Bank’s diverse departments as required.During 2013, the Central Bank of Kuwait’s instructions on Corporate Governance rules and principles were put intoAnnual Report 201327