Ministry of Commerce: Strengthening Supervisory Cooperation to Combat Money Laundering and Terrorist Financing - Sarmad

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, 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.

Deputy Minister for Acting Affairs Marwa Al-Juaidan stated in a comment to the Kuwait News Agency (KUNA) 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 fundamental element in promoting transparency and identifying the individuals behind the ownership and control of companies, thereby supporting efforts to curb the misuse of legal entities in illegal activities.

She clarified that cooperation among regulatory authorities contributes to unifying efforts, developing regulatory and supervisory procedures, and sharing expertise and information, which enhances the efficiency of the system for combating money laundering, terrorist financing, and the financing of weapons proliferation, while raising the level of compliance with regulatory and legal 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 exchanging information and verifying beneficial ownership data, and coordinating 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 regarding the transparency of beneficial ownership data and verifying the accuracy, sufficiency, and completeness of information registered in the beneficial ownership register concerning persons covered by the scope of the memorandum.

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

Al-Juaidan reported 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 identity or misuse legal persons and legal arrangements.

She added that the update includes the exchange of strategic information concerning 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 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 banking and financial 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 necessary data and information to perform supervisory duties stipulated in relevant laws, including the Law on Combating Money Laundering and Terrorist Financing.

It confirmed 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.