KUWAIT CITY, Sept 22: The decision issued by the Minister of Commerce and Industry Khalifa Al-Ajeel last Wednesday to “prohibit the sale of vehicles of all types for cash, allowing payment only through banking channels” has received widespread approval from financial and economic circles. This move is seen as a measure to reduce suspicions surrounding money laundering and financial crimes in the country.

This decision, part of an ongoing campaign by Al-Seyassah daily to cut off sources of money laundering and crack down on those involved, is regarded by experts as “the first step” in a long journey that needs to be followed by additional measures. They advocate for expanding the ban to include cash transactions in the real estate sector, gold trade, electrical appliances, and durable goods, emphasizing that restrictions should encompass all real estate transactions.

They argue that the check requirement imposed by the Ministry of Justice is insufficient. Khaled Al-Anzi, an economic and real estate expert and head of the Al- Mutlaa Residents Committee, strongly supports the minister’s decision. He noted that this initiative will effectively eliminate illogical money laundering practices. He further urged the minister to extend the cash ban on real estate transactions throughout all stages, not just the initial bank check process, as this could lead to circumvention. He highlighted the ongoing money laundering issues in the real estate market, which have inflated property prices significantly -- homes that should sell for half a million dinars are now priced over a million, disrupting buying and selling operations.

Al-Anzi also pointed out that many auctions for valuable items are witnessing money laundering activities, necessitating new regulations to restrict trading in these auctions to banking transactions only, thereby tightening the grip on money laundering networks. Lawyer Ali Al-Attar emphasized that the decision benefits the national economy and called for the generalization of the “cash transaction ban” to other economic sectors, including money exchange companies. He stressed that all financial transfers should utilize bank cards, arguing that allowing cash transactions of up to 3,000 dinars could perpetuate money laundering activities.

Dr. Salah Boursali, head of the Contractors Union, stated that the cash ban in the car market is a key step in addressing money laundering suspicions. He supported applying this principle to all economic and commercial activities in the country, including contracting companies, ensuring that payments to contractors are made through banking transactions. He added that the gold market, electronic and electrical goods, wholesale food trade, and furniture should all be subject to banking transactions to further restrict money laundering activities.

By Najeh Bilal
Al-Seyassah/Arab Times Staff