Banking Laws (BL)

1. BANKING CONFIDENTIALITY

An essential element of the bank/customer contract is that banks will keep information relating to their customers confidential.

This Program will explore this issue in detail and provide guidance on ensuring that the contract is not breached.

OBJECTIVES
This Program will help participants to:

	understand the legal framework for banking confidetiality
	improve their ability to handle situations that require an understanding of banking confidentiality and related exceptions
	learn how to avoid being trapped into releasing information that breaks customer rights of confidentiality and not to be held legally responsible for such incidents

CONTENTS

Legal Rules
	The legal fundation of bank confidentiality
	Basis for legal confidentiality
	The Kuwaiti Constitution and protection of personal freedom
	The legal interpretation of personal freedom (the Constitution Court Ruling No 1/1986)
	The contract between the bank and the customer
	The Central Bank law and bank confidentiality
The Legal Banking Domain
	Confidential information - Definition
	The personal domain
	The time domain
The Banking Confidentiality Exceptions
	Customer satisfaction - the nature of permission
	The judicial authorities
	Bank supervision
	Risk of certralization and information exchange between banks
The Implication of Breaking Bank Confidentiality
	Punishable responsibility
	Civil responsibility
	Representative responsibility

METHODS
Lecture-discussions and case studies.

TARGET AUDIENCE
All bank staff.

LANGUAGE
The Program will be presented in Arabic.

DURATION
6 training hours, two days, evening sessions.

2. BANKING ACCOUNTS AND SERVICES

In our modern business world almost every transaction is governed by the law. The opening and maintenance of any bank account is primarily a matter for the application of the law. Banking has undergone tremendous changes and the law relating to banking has naturally changed as well. Only the banker and the customer - the parties to the banking contract - remain unchanged

OBJECTIVES
This Program will help participants to:

	understand the structure of the major legal aspects of banking accounts, banking services and commercial papers
	interpret the various provisions of laws come across in this respect

CONTENTS

	Bank Accounts
	Bank Services
	Credit Cards

METHODS
Lecture-discussions and case studies.

TARGET AUDIENCE
Banking officers who need to understand laws influencing bank operations. They should have at least 2 years of banking experience.

LANGUAGE
The Program will be conducted in Arabic.

DURATION
9 training hours, three days, evening sessions.

3. LEGAL ASPECTS OF MONEY LAUNDERING

After raising the profile of Money Laundering in the local banking community over the last 3 years it is now appropriate to highlight the legal implications which arise from this activity.

OBJECTIVES
This Program will help participants to:

	familiarize themselves with the risks of money laundering and the forms it may take
	be aware of the international and national efforts to combat money laundering
	appreciate the role of banks in tackling this issue

CONTENTS

	Money laundering as an economic crime
	What is money laundering operation from a legal point of view?
	Forms of money laundering
	Steps of money laundering
	International and national efforts in combating money laundering International efforts Examples of national efforts
	Banks and money laundering operations The connection between banks and money laundering operations Banks’ responsibility in combating money laundering operations Banks’ role in controlling money laundering
	Financial Action Task Force

METHODS
Lecture-discussions, practical applications and case studies.

TARGET AUDIENCE
Credit officers, branch managers and staff in legal departments.

LANGUAGE
The Program will be presented in Arabic.

DURATION
9 training hours, 3 days, evening sessions.

4. CONTRACTS IN ISLAMIC CREDIT AND FINANCE

Islamic bank's are operating in compliance with the Islamic Shari'ah Law which forbids chargin bank interest in principle. The depositors are liable to share profit or loss as in Al Mudarabah finance to make a marginal profit as in Al Ijarah, etc.

OBJECTIVES
This Program will help participants to:

	enhance the ability to use Islamic means of liquidity management
	explain the Shariah definition, conditions and requirements

CONTENTS

The main contract and financing tools in Islamic Banks are :
	Al Mudarabah Definition Terms and conditions Profit distribution in Al Mudarabah Selling, Al Sallam Selling
	Al Musharakah Definition The difference between Al Mudarabah and Al Musharakah Elements and basis for Al Musharakah Profit distribution in Al Musharakah Benefits of Al Musharakah and its application in Islamic Banking
	Al Ijarah Definition Fixed Assets and Real Estates Al Ijarah that ends with ownership Terms of Al Ijarah contracts
	Al Estesna'a Definition and application System of Estesna'a application Regulation of Al Estesna'a contracts and Al Estesna'a parallel contracts Bank responsibility
	Bank Loan What is bank loan Terms Loan in Islamic bank without interest, Al Qarth Al Hassan The actual practices of loan system in Islamic Banks
	Other Credit Tools Letter of Credit Letter of Guarantee Bank Accounts DIscounting of commercial papers Tawarruq Options Swaps

METHODS
Lecture-discussions and case studies.

TARGET AUDIENCE
Corporate, Credit Administration, Risk and Legal Division staff handling such documents

LANGUAGE
The Program will be presented in English.

DURATION
6 training hours, two days, evening sessions.

5. LEGAL ASPECTS OF INTERNET BANKING SERVICE

Internet has become an essential part of life today. The legal issues and legal terms will be discussed in this Program under the Kuwaiti law

OBJECTIVES
This Program will help participants to:

	introduce themseleces to the most important legal issues that govern bank's operation through the internet
	explain some of the legal terms that impact the main banking operation through the internet under Kuwaiti law

CONTENTS

	Laws related to banking operation through the internet
	Electronic contracts and methods of execution
	Problems of validation and claims in electronic documentations
	Bank responsbility in securing and protecting electronic documents
	The legal documents fundation for banking confidentiality with regard to the electronic bank and their responsibilities

METHODS
Lecture-discussions.

TARGET AUDIENCE
All staff involved in sending information through the internet or electronic servie

LANGUAGE
The Program will be presented in Arabic.

DURATION
6 training hours, two days, evening sessions.

6. LEGAL ASPECTS OF CREDIT COLLATERALS

The banks use several techniques to examine a client's credit worthiness are abundant. Banks also exert much effort to monitor the loan and prevent it from turning bad. But, when every thing else fails, bank's final resort would be the collateral.

OBJECTIVES
This Program will help participants to:

	develop a deeper understanding of the major legal aspects of credit collaterals
	deal with the legal aspects of credit collaterals in a manner that will protect the interest of their banks

CONTENTS

	Role of collaterals in confronting credit risks
	Guarantees
	Collaterals (Mortgages and Pledges)

METHODS
Lecture-discussions, practical applications and case studies.

TARGET AUDIENCE
Senior officers in Legal, Credit and Operations Departments who need to know more about credit collaterals

LANGUAGE
The Program will be conducted in Arabic.

DURATION
15 training hours, five days, evening sessions.

7. CENTRAL BANK ROLE IN SUPERVISING BANKING INDUSTRY

With Globalization and changes in international regulations, the role of Central Bank to inspect the financial institutions and banks has become very sensitive and important. Central Banks need to adopt to the changes in laws and regulations and have the responsibility to check implementation of new regulations

OBJECTIVES
This Program will help participants to:

	understand the purpose of Central Bank
	understand the objectives of Central Bank inspection and the structure set up for inspection
	know the frame work of inspection rules announced by Central Bank

CONTENTS

	Purpose and function of Central Bank
	Hierarchy of banking and financial sector in Kuwait
	Objectives of inspection
	Legal fundation of inspection
	License
	Issuance of legal instructions
	Collection of information and data needed for inspection
	Inspection
	Taking the righ corrective action and penalty application

METHODS
Lecture, discussions, practical application and case studies.

TARGET AUDIENCE
Managerial and supervisory level bank staff.

LANGUAGE
The Program will be conducted in Arabic lectures - discussions.

DURATION
9 training hours, three days, evening sessions.

8. CHEQUE AND COMMERCIAL PAPERS

Promissory notes, commercial papers, bills of exchange and cheques are all forms of instruments that permit greater credit extension, facilitate trade and lower interest rate for borrowers. In modern banking, they represent a lucrative source of business that needs to be pursued with skill and knowledge

OBJECTIVES
This Program will help participants to:

develop a sound understanding of the legal principls for dealing in negotiable instruments

CONTENTS

	Redulations related to dealing in negotiable instruments
	Legal aspects and implications of the discounting process

METHODS
Lecture-discussions, practical applications and case studies.

TARGET AUDIENCE
Managers and officers in credit and operations

LANGUAGE
The Program will be conducted in Aricab.

DURATION
9 training hours, three days, evening sessions.

9. COMMERCIAL COMPANIES AND MUTUAL FUNDS

Companies are among the leading customers of banks in Kuwait. Understanding the legal system governing their operations would allow a banker to minimize legal conflicts, improve the quality of services provided to companies, and enhance business relationships

OBJECTIVES
This Program will help participants to:

	equip themselves with the knowledge of important provisions of the Company Laws in Kuwait
	assist them in making sound interpretations of the various provisions of related laws they come across in the ordinary course of their work

CONTENTS

	Definition and characteristics of companies
	Requirements for forming companies
	A company's legal identity
	Types of commercial companies in Kuwaiti Law
	Partnership and simple commandite partnership
	Shareholding and commandite partnership by shares
	Companies with limited liabilities
	Joint ventures
	Investment funds

METHODS
Lecture-discussions, practical applications and case studies.

TARGET AUDIENCE
Officers and managers in credit and operations departments, with minimum three years of experience

LANGUAGE
The Program will be conducted in Arabic.

DURATION
18 training hours, six days, evening sessions.

10. ATTACHEMENT OF CUSTOMER'S FUNDS WITH BANKS

The procedures governing the attachment of customer's fund is of great importance to the banker/customer relationship. Bank staff involved in such operations must understand the legal aspects of such undertakings, in order to better protect the rights of the bank and also better serve the customer

OBJECTIVES
This Program will help participants to:

	demonstrate the proceedings of the attachment of customer's funds with banks
	understand the important issues that may arise in this respect and legal steps which should be taken

CONTENTS

	Definition of Attachment Provisional Attachment Executive Attachment
	Types of Attachment Attachment served on a bank by a third party Attachment by a bank of funds in its custody
	Application of Attachment Rules Attachment of an individual account Attachment of a joint account Attachment of a rented safe Attachment of securities Attachment of salaries
	Effects of Attachment

METHODS
Lecture-discussions and case studies.

TARGET AUDIENCE
Bank staff who need in their job to understand the legal aspects of attachment of customer's funds. They should have at least 1 year banking experience

LANGUAGE
The Program will be presented in Arabic.

DURATION
9 training hours, three days, evening sessions.