'Commerce': Strengthen Cooperation with Regulatory Authorities to Combat Money Laundering and Terrorist Financing

- Al-Juaidan: Updating memorandums of understanding with the Central Bank, Capital Markets Authority, and Financial Intelligence Unit to ensure transparency of beneficial ownership data

The Ministry of Commerce and Industry emphasized today, Wednesday, the importance of enhancing cooperation and coordination among regulatory and financial authorities, and developing mechanisms for exchanging information and verifying beneficial ownership data. This supports efforts to combat money laundering, the financing of terrorism, and the financing of weapons proliferation, while safeguarding 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 stated that combating money laundering is a shared responsibility requiring integrated roles among relevant entities, along with the exchange of pertinent information and data. This enhances 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. This helps curb the misuse of legal entities for illegal activities.

She clarified that cooperation among regulatory authorities contributes to unifying efforts, developing regulatory and supervisory procedures, and exchanging expertise and information. This enhances the efficiency of the system for combating money laundering, the financing of terrorism, 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. This is being achieved by developing memorandums of understanding, information exchange mechanisms, verification of beneficial ownership data, and coordinating regulatory procedures among relevant entities.

She stated 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, adequacy, and completeness of information registered in the beneficial ownership register concerning individuals covered by 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 regarding 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. This includes cases of mismatch, inconsistency, or inaccuracy in 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 regarding sectors under the Ministry’s supervision, including sectoral and thematic analyses, emerging risks related to money laundering, the financing of terrorism, 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 regarding banking and financial units supervised by the Central Bank. It also regulates procedures related to the establishment stages, operation of activities, and liquidation or termination of these units.

It clarified that the memorandum stipulates the right of both parties to request the data and information necessary to carry out the supervisory duties prescribed in relevant laws, including the Anti-Money Laundering and Counter-Terrorist Financing Law.

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