Review of Operations - Commercial Bank of Kuwait

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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
actual implementation and the year also saw the issuance of Law 106/2013 regarding AML & CTF and the newinstructions issued by the Central Bank of Kuwait in this regard. In view of this, the Department worked closely toupdate the related policies, bylaws and controls to achieve full compliance with new legal & regulatory requirements.Furthermore, the Department’s efforts, during 2013, extended to cover the necessary procedures required foradherence to the “Foreign Account Tax Compliance Act”. Such efforts included the introduction of amendments toaccounts opening form and “Know Your Customer” form and other procedures applicable at the Bank. The Bankalso entered into agreement with a major global audit firm to act as the Bank’s consultant for implementation of therequirements of the said Act.As for Corporate Governance rules & principles, GM - Compliance & AML Department has been previously engaged tomanage the implementation scheme of such rules and principles where the Bank finalized all regulatory requirementsin this area.Compliance & AML Department is poised for any amendments that may arise on domestic regulatory instructions andinternational standards by developing its procedures for maintaining the Bank’s image on the one hand and avoidingany potential risks that may result from non-compliance with such requirements on the other hand.LEGAL DEPARTMENT |The Legal Department is the protective shield that safeguards the Bank’s rights and interests towards any potentiallegal risks and actual claims filed against the Bank before any Court. Legal Department defends the Bank’s legal rightstowards third party and provides all legal and judicial services required by the Bank’s diverse departments and branchesto help them perform their usual day-to-day business. In addition, Legal Department monitors Collection Unit foraccounts and files of defaulting customers in terms of regularity in repaying the overdue installments along with takingthe necessary action against customers dishonoring their obligations so that the Bank can reach a compromise whetherby repayment or settlement after obtaining an approval from the concerned department in the Bank.Legal Department’s functions are assumed within a defined strategy whose principles were set by the Bank’s Board ofDirectors whereby Legal Departments cooperates with all other departments within its endeavors to get such principlesmaterialized and to allow the Bank attain leading position among local banks.As such, Legal Department endeavors to provide legal advice for the benefit of the Bank, apart from drafting therequired contracts & agreements and executing the court rulings passed in favor of the Bank and eliminating anyhindrances that may hamper work flow at the Bank’s departments. Moreover, Legal Department represents the Bankbefore all government agencies such as Ministry of Justice, Ministry of Commerce and Industry and all courts with theirdiverse degrees to provide the utmost scope of protection and safety for the Bank, its shareholders and employees.Commercial Bank Of KuwaitADVERTISING & PUBLIC RELATIONS DEPARTMENT |Advertising and Public Relations Department at the Bank assumes a prominent role by effectively and proactivelyparticipating in successful activities and social related events during the year 2013. The Department continued itsrole in solidifying the Bank’s corporate image and its social responsibility as a leading financial institution recognizingthe magnitude of its responsibility towards the community in which it operates. This was further illustrated through28
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Page 5 and 6: TREASURY |Backed by solid foundatio
Page 7 and 8: c) Liquidity RiskThe Bank manages l
Page 9 and 10: Civil ID collection from Chip cards
Page 11: Staff Planning and Recruitment Sect

Review of Operations - Commercial Bank of Kuwait

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