Financial Crime World

Mutual Evaluation Report of Kuwait: Key Findings and Recommendations

Executive Summary

The Financial Action Task Force (FATF), Organization for Economic Co-operation and Development (OECD), and International Monetary Fund (IMF) have conducted a mutual evaluation report on the State of Kuwait. This report assesses Kuwait’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) framework, highlighting key areas of strength and weakness.

AML/CFT Framework

  • Comprehensive Framework: Kuwait has established a comprehensive AML/CFT framework, including laws and regulations that provide a sound basis for combating money laundering (ML) and terrorist financing (TF).
  • Laws and Regulations: The framework includes the Anti-Money Laundering Law No. 106 of 2013 and the Combating Terrorism Financing Law No. 64 of 2004, among others.

National and International Cooperation

  • National AML/CFT Committee: The National AML/CFT Committee has been established to ensure cooperation among relevant authorities in the fight against ML and TF.
  • Committee on Combating Terrorism: The Committee on Combating Terrorism has also been established to coordinate efforts in combating terrorism.

International Agreements

  • Ratification of Conventions: Kuwait has ratified and implemented most of the provisions of the Vienna and Palermo Conventions, but it has not ratified or implemented the TF Convention.
  • Limited Implementation: The implementation of international agreements is limited, which may hinder effective cooperation with other countries.
  • Legal Framework: The legal framework for MLA is largely in line with international standards.
  • Response to Requests: Authorities have not provided rapid responses to foreign requests for assistance.

Extradition

  • Extraditable Offenses: ML is an extraditable offense, and dual criminality is a requirement for extradition.
  • Limitations and Restrictions: There are some limitations and restrictions on the extradition of Kuwaiti nationals.

Non-Judicial International Cooperation

  • Central Bank of Kuwait (CBK): International cooperation with the CBK is limited to matters related to consolidated supervision.
  • Lack of Controls and Safeguards: Other authorities have inadequate controls and safeguards for information sharing.

Capacity Building

  • Capacity Improvement: The capacity of authorities and statistics in Kuwait still need to be substantially improved.
  • Resource Allocation: There are concerns about resource allocation, human resources, professional standards, and specialist skills in law enforcement personnel.