Deputy Commerce Minister: Combating Money Laundering is a Shared Responsibility Requiring Role Integration Among Relevant Authorities

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

In a statement to the Kuwait News Agency (KUNA), Acting Deputy Minister Marwa Al-Juaidan said that combating money laundering is a shared responsibility that requires integration of roles among relevant entities, as well as the exchange of pertinent information and data, thereby enhancing 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 fundamental element in enhancing transparency and identifying the individuals behind the ownership and control of companies, which helps curb the misuse of legal entities for illicit activities.

She clarified that cooperation among regulatory authorities contributes to unifying efforts, developing supervisory and oversight measures, and sharing expertise and information, thereby strengthening the effectiveness of the system for combating money laundering, terrorist financing, and the financing of proliferation of weapons of mass destruction, and raising the level of compliance with regulatory and legislative requirements.

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 coordination of regulatory measures among relevant entities.

Al-Juaidan 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, sufficiency, and completeness of information registered in the beneficial ownership register pertaining to persons covered by the memorandum.

She outlined that areas of cooperation include the exchange of data, information, records, and documents related to direct and indirect ownership, previous changes in ownership dates, disclosures concerning beneficial ownership, and material changes affecting ownership or control.

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 exchange information on beneficial owners, including cases of mismatch, inconsistency, or inaccuracy in their data, as well as trends, patterns, and methods used to conceal their identity 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 proliferation of weapons of mass destruction, trends and patterns, risk indicators, and overall observations related to the reporting of suspicious transactions.

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 financial and monetary units supervised by the Central Bank, and regulates procedures related to their establishment, conduct of activities, and liquidation or termination.

She clarified that the memorandum stipulates the right of both parties to request the data and information necessary to perform supervisory duties prescribed by relevant laws, including the Law on Combating Money Laundering and Terrorist Financing.

It confirmed that the memorandum also includes cooperation in the preparation, implementation, and review of 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.