Interior Ministry warns against 'device and phone laundering': Do not become a party to money laundering operations

The Ministry of Interior has warned citizens and residents against dealing with individuals, shops, and electronic accounts that promote “device and phone cashing-out” services, or provide immediate cash liquidity through installment contracts for phones and deferred payment services offered by telecommunications companies. It emphasized that these practices constitute a criminal offense punishable by law.

The ministry clarified that “cashing-out” operations represent a clear departure from legal and regulatory frameworks. Their promoters entice customers with the prospect of receiving immediate cash in exchange for purchasing devices and then selling them to intermediaries at heavily discounted prices, which can be up to 40 percent below market value.

It added that these practices involve luring customers into signing documents with inflated values exceeding the original amount received, thereby exposing them to legal violations and judicial repercussions.

The ministry stressed the necessity of exercising caution and refraining from dealing with promoters of these services to avoid criminal liability and falling victim to egregious usury, fraud, and deception, or being exploited in money laundering operations.

It reaffirmed its continued cooperation with regulatory authorities in the Ministry of Commerce and the Public Authority for Communications and Information Technology to track down non-compliant accounts and outlets, apprehend those responsible, revoke and cancel commercial licenses, administratively close shops, and refer those involved to the competent authorities to take deterrent legal measures against them.