KUWAIT CITY, Dec 5: In a significant development underscoring the urgency of combating money laundering, Kuwait continues to address the issue with renewed vigor, reports Al-Seyassah daily. This comes as the Minister of Social Affairs, Dr. Amthal Al-Huwailah, met with the Financial Action Task Force (FATF) Secretariat to discuss enhanced cooperation and exchange of expertise to strengthen Kuwait’s efforts against money laundering and terrorist financing. The Economic Society also issued a critical memorandum titled “What Comes After the FATF Report on Combating Money Laundering in Kuwait?”
The society emphasized that while Kuwait is no longer at risk of being placed on FATF’s grey list, the need for a comprehensive correction plan remains critical. The report highlighted key areas requiring immediate attention, such as addressing legislative gaps, enhancing the powers and independence of the Financial Investigations Unit, and revising the Anti-Money Laundering and Terrorism Financing Law to meet international standards. A notable proposal included issuing new Kuwaiti dinar banknotes as a measure to cleanse the market of illicit funds and expose hidden illegal wealth. The Economic Society stressed the importance of stricter oversight of financial transactions, including mandatory external audits for exchange companies every six months.
This proactive approach, implemented by the Central Bank of Kuwait, has already exposed two significant money-laundering cases involving transfers to and from blacklist countries. Furthermore, the association underscored the need for a risk-based approach in regulating charitable and civil society organizations, which are considered high-risk for misuse in terrorist financing. It called for balanced measures to protect these sectors while avoiding disruption of legitimate activities. During the meeting, Dr. Al-Huwailah reiterated Kuwait’s commitment to FATF’s recommendations, aligning with directives from the political leadership to enhance transparency and bolster the National Committee for Combating Money Laundering and Terrorist Financing. The session concluded with a call for stronger collaboration between national and international entities to elevate oversight efficiency and align Kuwait’s procedures with global standards, thus reinforcing its position in the fight against financial crimes. This intensified focus on combating money laundering refl ects Kuwait’s determination to safeguard its financial reputation and uphold international commitments while addressing evolving challenges in the financial landscape.
