Kuwait might become haven for money laundering ops: IMF

September 4, 2011
The International Monetary Fund (IMF) has warned that Kuwait might become a haven for money-laundering activities due to several factors like the rapid growth in the country’s financial sector and poor precautionary measures taken by financial institutions, reports Al-Seyassah daily.

In its monthly report for September, IMF urged Kuwait to consider 40 recommendations for controlling money-laundering activities and nine recommendations to control terror financing operations. It hinted that Kuwait is susceptible to money-laundering and terror financing threats.

There is evidence to prove that money-laundering activities are taking place in Kuwait, the report said, adding “the rapid growth of the financial sector provides a good atmosphere for those wanting to carry out suspicious and terrorist activities.”

The report further stated that although the law on controlling money-laundering was approved in 2002 and it imposes some obligations on financial institutions, it does not incriminate the financing of terrorist operations and does not have a mechanism to carry out the decisions approved by the Security Council in this regard.
The report coincided with the case of KD 25 million which was allegedly deposited in accounts of some lawmakers and thus renewed doubts about money-laundering activities in the country.

Meanwhile, sources said the KD 25 million case will be referred to the Public Prosecution within the next few days.