Ministry of Commerce: Combating Money Laundering is a Shared Responsibility Requiring Role Integration Among Relevant Authorities

The Ministry of Commerce and Industry affirmed on Wednesday the importance of strengthening cooperation and coordination among regulatory and financial authorities, and developing mechanisms for exchanging information and verifying beneficial ownership data, to support efforts to combat money laundering, terrorist financing, and the financing of weapons proliferation, while safeguarding the integrity of the country’s economic and financial environment.

In a statement to KUNA, Acting Undersecretary Marwa Al-Juaidan said that combating money laundering is a shared responsibility requiring integrated roles among relevant entities, along with the exchange of pertinent information and data, to enhance the capacity to monitor and address risks in accordance with the laws and legal jurisdictions of each entity.

Al-Juaidan added that having accurate and up-to-date information on beneficial owners is a key element in enhancing transparency and identifying the individuals behind the ownership and control of companies, thereby helping to prevent the misuse of legal entities for illegal activities.

She noted that the ministry is working to strengthen cooperation and coordination frameworks with the Capital Markets Authority, the Kuwait Financial Intelligence Unit, and the Central Bank of Kuwait through the development of memoranda of understanding, mechanisms for information exchange and verification of beneficial ownership data, and the coordination of regulatory procedures among relevant entities.

She said that the recently signed project to update the memorandum of understanding with the Capital Markets Authority includes enhancing cooperation on beneficial ownership data transparency and verifying the accuracy, adequacy, and completeness of information registered in the beneficial ownership register concerning persons covered by the scope of the memorandum.

Al-Juaidan stated that the recently signed update to the memorandum of understanding with the Kuwait Financial Intelligence Unit aims to develop cooperation mechanisms and information exchange related to beneficial ownership, including cases of mismatch, inconsistency, or inaccuracy in such data, as well as trends, patterns, and methods used to conceal identities or misuse legal persons and legal arrangements.

She added that the update also covers the exchange of strategic information regarding sectors under the ministry’s supervision, including sectoral and thematic analyses, emerging risks related to money laundering, terrorist financing, and the financing of weapons proliferation, trends, patterns, risk indicators, and overall observations related to suspicious transaction reporting.

Al-Juaidan pointed out that the recently signed memorandum of understanding with the Central Bank of Kuwait defines coordination frameworks between the two parties concerning banking and financial units supervised by the central bank, and regulates procedures related to their establishment, operation, and liquidation or termination.

She clarified that the memorandum grants both parties the right to request necessary data and information to carry out regulatory duties stipulated in relevant laws, including the Law on Combating Money Laundering and Terrorist Financing.

She emphasized that the memorandum also includes cooperation in preparing, implementing, and reviewing guidelines, awareness programs, and capacity-building initiatives related to beneficial ownership transparency and relevant regulatory obligations, as well as the exchange of technical expertise and best practices, and the development of mechanisms for verifying and updating information.