Ministry of Commerce enhances information exchange with regulatory bodies on 'beneficial owner'

The Ministry of Commerce and Industry has emphasized the importance of enhancing cooperation and coordination among regulatory and financial authorities, as well as developing mechanisms for exchanging information and verifying beneficial ownership data. These efforts support anti-money laundering (AML), counter-terrorist financing (CTF), and counter-proliferation financing (CPF) initiatives, while safeguarding the integrity of the country’s economic and financial environment.

In a statement to KUNA, Acting Deputy Minister Marwa Al-Juaidan stated 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 authority.

Al-Juaidan added that having accurate and up-to-date information on beneficial owners is a fundamental element in promoting transparency and identifying the individuals behind the ownership and control of companies. This helps reduce 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. This involves developing memoranda of understanding (MoUs), establishing information exchange mechanisms, verifying beneficial ownership data, and coordinating regulatory actions among relevant authorities.

Regarding the recently signed MoU update with the Capital Markets Authority, Al-Juaidan explained that it aims to enhance cooperation on beneficial ownership data transparency and verify the accuracy, sufficiency, and completeness of information registered in the beneficial ownership register concerning individuals covered by the MoU.

She further stated that the recent update to the MoU with the Financial Intelligence Unit targets the development of cooperation mechanisms and information exchange related to beneficial ownership. This includes addressing 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.

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 AML, CTF, and CPF, trends, patterns, risk indicators, and overall observations concerning suspicious transaction reporting.

Al-Juaidan highlighted that the recently signed MoU with the Central Bank defines coordination frameworks between the two parties concerning banking and financial units supervised by the Central Bank. It regulates procedures related to the establishment, operation, and liquidation or termination of these entities’ activities.

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

The MoU also includes cooperation in preparing, implementing, and reviewing guidelines, awareness programs, and capacity-building initiatives related to beneficial ownership transparency and relevant regulatory obligations. Additionally, it facilitates the exchange of technical expertise and best practices, and the development of mechanisms for verifying and updating information.