Kuwait

Kuwait’s regulatory and supervisory framework for anti-money laundering (AML) activities has recently been strengthened.

"A major development in strengthening the AML systems was the enactment of Law No. 35 of 2002 regarding Anti Money Laundering Operations, supplemented by several Central Bank of Kuwait (CBK) Instructions." 2

"The law is understood to order financial institutions to register their sources of money and impose other organisational measures and penalties.

Any transaction giving rise to a ‘reasonable belief’ that it is connected to money laundering must be reported. Banks, credit and financial institutions have to identify and report clients for all cash transactions exceeding USD10,000. It is also now a criminal offence for anyone to fail to tell the authorities if they know about a laundering operation." 3

"Kuwait has established a financial intelligence unit, the Kuwaiti Financial Inquiries Unit (KFIU), which operates under the CBK. The KFIU works in tandem with the country's office of the public prosecutor to process and exchange information about suspicious activity. Kuwait has also set up an Anti-Money Laundering Office within the Commerce Ministry." 1/4

Sources

IMF Country Report No. 04/151, “Kuwait: Financial System Stability Assessment”, May 2004.

World Bank, “FSA Financial Sector Assessment”, June 2004.

State of Kuwait, Anti-money laundering/terrorist financing.

Emily Brayshaw, “Kuwait's Central Bank to form FIU”, 25 June 2003, www.complinet.com.
Chris Hamblin, “Kuwait enacts new legislation”, 14 Feb 2002, www.complinet.com.
Helen O'Gorman, “Kuwait Government publishes vague guidance notes”, 12 May 2005, www.complinet.com.
Chris Hamblin, “Kuwait's FIU open for business, says diplomat”, 11 Oct 2005, www.complinet.com.