Kuwait’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Framework: Assessment and Recommendations

Introduction

The AML/CFT measures in place in Kuwait were assessed by a team, highlighting both strengths and weaknesses within the country’s framework. To draw a conclusion based on this text, additional information about the report’s overall assessment and recommendations is needed.

Key Findings

• Lack of Comprehensive Preventive Measures: Kuwait’s AML/CFT framework lacks comprehensive preventive measures for financial institutions (FIs) and designated non-financial businesses and professions (DNFBPs).
• Inadequate Supervisory Powers: Supervisors in Kuwait have inadequate powers to monitor and ensure AML/CFT compliance.
• Insufficient Sanctioning Powers: Kuwait’s sanctioning powers are insufficient, which is a concern for effectively combating money laundering and terrorist financing.
• Incomplete ML Criminalization: The country’s ML criminalization does not cover all serious predicate offenses. Additionally, terrorism financing is not criminalized in Kuwait.

Concerns with the Financial Intelligence Unit (KFIU)

• Lack of Independence: The KFIU is not established as an independent national center responsible for the receipt, analysis, and dissemination of suspicious transaction reports (STRs) and other information regarding potential money laundering or terrorist financing.

Conclusion

Based on these findings, it can be concluded that Kuwait’s AML/CFT framework needs significant strengthening in several areas to effectively combat money laundering and terrorist financing. Potential improvements include:

• Implementing more comprehensive preventive measures for FIs and DNFBPs.
• Enhancing supervisors’ powers to monitor and ensure AML/CFT compliance.
• Criminalizing terrorism financing.

Note: These conclusions are based on a limited excerpt from the report, and a more comprehensive assessment would be required to provide a complete conclusion.