Here is the article rewritten in markdown format with proper headings, subheadings, and bullet points:
Financial Crime Investigation Methods in Kuwait Show Improvement with New Law
Kuwait City - The Kuwaiti Government has taken a significant step towards combating money laundering and terrorism financing by passing Law No. 106 of 2013, also known as the “New Law”. This legislation supersedes the previous law, which was criticized for its lack of provisions to prevent terrorist financing and freeze assets suspected of being linked to such activities.
Positive Development in Combating Financial Crimes
The New Law has been hailed as a positive development by international experts, who have praised Kuwait’s commitment to combating financial crimes. The law establishes new governing principles and standards that protect local financial institutions from being used for money laundering and terrorism financing.
Key Provisions of the New Law
- Criminalization of Terrorist Financing: Article 3 states that any person who intentionally collects funds with the aim of using them to commit a terrorist act can be considered guilty of terrorist financing.
- Freezing of Assets: Article 22 provides for the freezing of assets suspected of being linked to money laundering or terrorism financing.
Strengthening Customer Due Diligence Practices
The Central Bank of Kuwait has issued circulars and instructions to local financial institutions, emphasizing the importance of customer due diligence practices. These measures are designed to help identify suspicious transactions and prevent accounts from being opened for the purpose of terrorist financing or money laundering.
Creation of a Fully Independent Financial Intelligence Unit (FIU)
The law establishes a fully independent FIU, which will serve as the main investigative body responsible for receiving, analyzing, and transferring information related to suspected financial crimes. The creation of the FIU demonstrates Kuwait’s commitment to combating terrorism financing and money laundering, and sends a strong message to criminal organizations that prey on the country’s banking system.
Stricter Penalties for Breaching Provisions
The New Law has also introduced stricter penalties for those found guilty of breaching its provisions:
- Up to 10 years in prison and fines exceeding the amount laundered or used for terrorist financing (Article 28)
- Up to 15 years in prison and fines ranging from the value of the funds subject to the crime to double their value for financing terrorism (Article 29)
Restrictive Provisions Covering Hawaladars
The inclusion of restrictive provisions covering Hawaladars, or “Hawala” agents, is also a significant development. These agents provide cross-border cash courier services, but have been criticized for their lack of transparency and accountability. Under Article 20 of the New Law, any person wishing to leave Kuwait with currency or negotiable financial instruments must disclose their value to the Customs Authority.
Conclusion
Overall, the New Law marks a positive step in Kuwait’s efforts to combat money laundering and terrorism financing. While its effectiveness will be evaluated over time, the law has addressed many of the concerns raised by international experts and demonstrates the country’s commitment to protecting its financial institutions from abuse.