Scrutiny on Kuwait Exchange Firms for Money Laundering

Summary:
In Kuwait, exchange companies are under scrutiny for potential money laundering activities, as highlighted in the 2023 Financial Intelligence Unit’s report, which received 2,241 notifications of suspected money laundering, with 29% linked to exchange companies. A notable case involved two expatriate money changers, imprisoned and fined 60 million dinars for large-scale illicit transactions.
Abdullah Najib Al-Mulla of the Federation of Exchange Companies defended the sector, citing strict Central Bank oversight and secure transaction protocols. However, concerns persist about data misuse by some companies. Experts like Dr. Sadiq Al-Bassam and Dr. Abdullah Al-Amiri emphasize the need for stronger regulations and enforcement to address compliance lapses and broader economic impacts.
Kuwait has 185 exchange companies, rigorously supervised by the Ministry of Commerce and the Central Bank, adhering to Law No. (106) of 2013 against money laundering and terrorism financing. The Ministry of Commerce and Industry is verifying commercial licenses and emphasizes reporting unauthorized transactions, with severe penalties for any company found involved in money laundering.