Kuwait has launched a national system to monitor private-sector wage payments as it increases scrutiny of financial transactions and works to leave the Financial Action Task Force’s grey list.
The Kuwait Wage Payment System, unveiled by the Central Bank of Kuwait, will process and track salary transfers for private-sector employees through local banks. The system is designed to support secure electronic payments while improving data quality, reducing manual processes and enabling information sharing between authorities, the bank said.
The central bank will manage the platform’s technical and operational functions, while the Public Authority for Manpower will monitor employer compliance.
Kuwaiti economist Ali Al Anzi said the system would increase transparency and allow real-time monitoring of private-sector payrolls through local banks.
The move comes as Kuwait steps up efforts to combat money laundering and terrorist financing. Earlier this month, the central bank ordered banks to stop storing cash outside their vaults. Authorities have also shut down more than 73,000 companies found to be violating the law, while tighter rules on jewellery transactions were issued in July.
Source: AGBI
