KUWAIT CITY, Aug 12: Recent statements by Deputy Prime Minister, Minister of Defense, and Interior Sheikh Fahad Al- Yousef have reinvigorated efforts to address the growing issue of money laundering in Kuwait. Experts and legal professionals view these remarks as a significant step toward curbing financial crimes that threaten both society and the national economy. In an exclusive investigation by Al-Seyassah Daily, legal experts highlighted the emerging trends in money laundering, particularly the use of bank links to deceive victims.

These links often involve fictitious employment schemes or similar tactics to launder illicit funds. Lawyer Jarrah Mubarak Al- Wawan praised Sheikh Fahad Al-Yousef has emphasized his commitment to deterring money launderers, acknowledging Kuwait’s ongoing era of reform across various sectors. However, Al-Wawan expressed concern over the increasing number of money laundering cases in recent years. He highlighted that one of the latest methods employed by money laundering rings involves exploiting bank links. For instance, an individual might owe money to another and, upon request for repayment, direct the debtor to transfer funds to a bank link.

The debtor later discovers that the link belongs to a third party involved in laundering money through such transactions. Al-Wawan stressed the importance of heightened awareness regarding these schemes. While technological advancements have greatly benefited banking services, they have also introduced new opportunities for financial crime. He advocated for a thorough review and amendment of the money laundering laws to close existing loopholes and effectively combat these sophisticated criminal practices.

Al-Wawan also highlighted several fraudulent tactics used by money launderers. Scammers often advertise fake job opportunities, with each link requiring a payment of 20 dinars as a starting point to lure victims. These fake job offers are typically promoted through social media platforms, serving as a cover for criminal activities. Scammers use these offers to deceive people into investing in nonexistent ventures or making financial transactions on behalf of unknown entities. These enticing job offers, often promising high wages and easy work, can lead to severe consequences for the unsuspecting victims. Additionally, Al-Wawan noted that small exchange firms often engage in money laundering by breaking down large sums of money and transferring them abroad. To effectively combat these methods, he emphasized the need to amend the Money Laundering Law No. 106 of 2013. This law currently has several legal gaps, and money laundering syndicates are adept at exploiting modern technology for their activities.

Furthermore, Al-Wawan explained that money laundering gangs use various communication methods, including phone calls and digital platforms like email, Facebook, Twitter, and Instagram, to target victims. These gangs make enticing offers to lure victims into traps. Once the victims fall into these traps, they are often instructed to open bank accounts to process transactions on behalf of these criminal networks. After some time, the scammers disappear, leaving the victims facing legal consequences. In Kuwait, the Penal Code addresses fraud and scam offenses with strict penalties, including imprisonment and substantial fines. The Money Laundering Law No. 106 of 2013 prescribes severe penalties, including imprisonment for up to 10 years and hefty fines that can amount to double the value of the illicit funds involved. Al-Wawan concluded by stressing the importance of raising awareness about these fraudulent schemes. Individuals should be cautious of job offers that require the use of personal bank accounts and report suspicions of fraud or money laundering. Awareness campaigns should focus on educating the public about the risks associated with bank links and money laundering.

Manal Al-Kandari, former Secretary-General of the Transparency Association and a specialist in transparency and integrity, supported the recent statements by Al-Yousef. She commended the Ministry of Interior’s proactive measures to protect the country from financial crimes and highlighted the need to educate young entrepreneurs to avoid falling victim to money laundering scams. Al-Kandari warned about the misuse of social media, which plays a significant role in the proliferation of money laundering cases. Social media platforms have become a major tool for deception and fraud. She cited examples of global economic crimes, including maritime piracy, where stolen gold was laundered and invested through these criminal activities. Al-Kandari noted that money laundering techniques extend beyond luxury goods and real estate. Launderers may also purchase valuable items like antiques and jewelry or invest in numerous businesses, restaurants, and resorts. These assets are often bought at inflated prices, then resold at lower prices to conceal the origin of the funds. This practice not only undermines the economy but also exacerbates social inequalities, as those with illicit wealth can dominate the market, pushing legitimate businesses and individuals out. Al-Kandari emphasized the need for stricter laws and enforcement to combat these practices. She called for the activation of the ‘Where Did You Get This From?’ law to protect Kuwait from financial crimes that inflate inflation rates and widen the gap between different social classes.

Dr. Ahmad Salama, an expert in psychology, highlighted the psychological impact of money laundering. The visible disparity between those who earn wealth through hard work and those who acquire it through illicit means can lead to disillusionment among honest, hardworking individuals. Young, ambitious people may feel discouraged when they see others who achieve extreme wealth without following the same path of effort and integrity. Similarly, diligent employees may experience frustration when they see money launderers enjoying luxurious lifestyles while they struggle to make ends meet. Moreover, Dr. Salama pointed out a concerning correlation between money laundering and the spread of drug abuse. Drug dealers often launder their proceeds to legitimize their gains, thereby contributing to the drug problem in society. He urged young people and diligent workers to remember that earning money lawfully is fundamental, and that illicit money is ultimately worthless and fails to address real needs.

Khaled Mohammad, an expert in administrative and information sciences, discussed the various methods used in money laundering. He identified the theft of banking data and its misuse in laundering operations as particularly dangerous. One method, he said, involves sending bank links to individuals, who are then asked to transfer funds to money launderers’ accounts. These operations often involve breaking down large sums into smaller amounts to obscure their origins. Mohammed also noted the use of fictitious job offers to manipulate bank accounts and transactions through exchange companies. Recommendations for combating money laundering include strengthening anti-money laundering measures, raising community awareness, avoiding suspicious links, reporting suspicious activity, addressing wealth disparity, and monitoring currency markets.

By Najeh Bilal
Al-Seyassah/Arab Times Staff