KUWAIT CITY, July 30: Legal and cybersecurity experts have confirmed that loopholes in Kuwait’s money laundering law are being exploited by financial crime mafias to conduct more money laundering operations.

During a special investigation by Al-Seyassah / Arab Times, the experts said they are surprised at the lack of updates to the money laundering law, especially given the international organization Financial Action Task Force (FATF) threat to include Kuwait on the grey list.

They called for adopting the experiences of Gulf countries in preserving their economic and social security from money laundering crimes. The head of the Kuwait Society for Information Security and an academic at Kuwait University, Dr. Safaa Zaman, views FATF’s threat to place Kuwait on the gray list as an urgent warning that requires effective action to prevent Kuwait from reaching this negative status.

Dr. Zaman emphasized that Kuwait’s Money Laundering Law, issued in 2013, along with the Electronic Crimes Law, needs significant strengthening and amendments. These laws do not adequately address the developments in social media networks and artificial intelligence.

She highlighted that money laundering laws are closely linked to information security. Therefore, the money laundering law must address the evolving digital fraudulent methods infiltrating trading and stock exchanges, including digital currencies.

Currently, no law in Kuwait criminalizes digital currencies, even though they can be used for money laundering. Additionally, many social media celebrities have escaped punishment despite their wealth increasing due to legal shortcomings, making them potential tools for money laundering. Dr. Zaman pointed out that existing laws are outdated and need to be modernized.

This includes establishing specialized courts for financial and technical cases to reduce delays in adjudication, which contribute to the rise in financial crimes. She also stressed the need to expand departments dealing with money laundering and electronic crimes. Dr. Zaman urged Kuwait to emulate Gulf countries’ experiences, noting that Saudi Arabia has issued deterrent laws against money laundering through its central bank, and Bahrain has made significant strides in cybersecurity to curb fraud. She concluded by saying that action must be taken to preserve Kuwait’s reputation abroad and prevent it from becoming a haven for money laundering. Lawyer Salem Hamoud explained that money laundering in Kuwait involves many complex and intertwined methods.

By Najeh Bilal
Al-Seyassah/Arab Times Staff