Financial Crimes in Kuwait: Definitions and Penalties

This article outlines the financial crime definitions and penalties as per the laws in Kuwait.

Financial Crimes in Kuwait

According to the Kuwaiti Penal Code, financial crimes encompass a wide array of offenses, some of which include:

• Fraud
• Forgery
• Embezzlement
• Money laundering

Crime Definitions

Fraud

As per the Kuwaiti Penal Code:

1. Fraud: any intentional act or omission by a person entrusted to handle another person’s funds or economic affairs, causing the victim to suffer a financial loss.
2. Forms of fraud: falsifying financial documents, offering false promises, or misusing trust funds for personal gain.

Forgery

1. Forgery: falsely creating or altering documents to deceive or harm another person.
2. Additional offenses: unauthorized use or possession of someone else’s signature or seal.

Embezzlement

1. Embezzlement: the criminal misappropriation of another person’s property by an employee or a person with a legal or contractual obligation to safeguard it.

Money Laundering

1. Money laundering: disguising illegally-gained proceeds as legal funds by engaging in various activities, such as:
   • Transferring money between banks or countries
   • Investing in property or businesses

Penalties for Financial Crimes

Some financial crimes carry severe penalties in Kuwait:

• Fraud can result in the death penalty in certain cases.
• Forgery and embezzlement can lead to imprisonment for up to 10 years.
• Money laundering can result in imprisonment for up to 15 years.

Strict Liability

The Kuwaiti Penal Code mandates strict liability in some financial crimes. This means that the intent of the perpetrator is not required for a conviction. This rule particularly applies to embezzlement where merely possessing or using another person’s property without authorization is sufficient for a criminal charge.