Kuwait seeks public help to curb financial crimes

Kuwait has appealed to the public to join a government drive to hunt down people involved in financial crimes.

The Central Bank of Kuwait made the appeal this week in an apparent move to prevent any surge in money laundering and other crimes by fraudsters taking advantage of the upheaval caused by the Iran conflict.

Like other Gulf oil producers, Kuwait has slashed crude output in recent days following the near-closure of the Strait of Hormuz and missile strikes by Tehran, which was attacked by the US and Israel on February 28.

“The Central Bank of Kuwait calls on the public to cooperate and report any information related to individuals or entities engaging in unlicensed financial activities,” it said on its website on Wednesday.

“The bank emphasises that such practices could pose a risk to individuals’ funds and the stability of the national economy, and could expose customers to financial perils.”

The bank said unlicensed activities include unauthorised money transfers, the provision of financing or the provision of electronic payment links from entities not licensed by the central bank or other official establishments.

Last December, Kuwait banned cash transfers outside the banking system and warned offenders would be jailed and have their companies shut down.

It has embarked on a drive to combat money laundering and terrorist funding following mounting pressure from Western governments and organisations.

Late last year, the Kuwaiti authorities reported that a two-year inspection drive had resulted in the closure of more than 73,000 companies that had failed to disclose their real owners.

Last month the Paris-based Financial Action Task Force added Kuwait to its so-called grey list of countries under increased monitoring for money-laundering and terrorist-financing risks.

Kuwait issued its first comprehensive anti-laundering and terrorism funding law in 2013. People convicted face financial penalties and prison terms of up to 10 years.

Further reading:

• IMF sees emerging diversification in Kuwait
• Boursa Kuwait proposes 2025 dividend after profit rises 55%
• Kuwait scraps oil services unit in latest move to overhaul industry