Audit Bureau issues binding controls to manage seized funds
New regulations tighten management oversight on agents handling seized financial assets
The President of the Audit Bureau, Essam Al-Roumi, has issued a new decision outlining the duties and regulatory framework governing agents responsible for managing seized funds, in line with directives issued by the Public Prosecution.
The decision, published in the official gazette Kuwait Alyawm today (Sunday), defines seized funds as those subject to a judicial order issued by the Public Prosecution preventing any form of disposal or transfer.
Under Article Two of the decision, ten binding controls have been introduced to regulate the work of financial management agents, in accordance with Article (24) of Law No. (1) of 1993.
The framework requires agents to comply with all obligations stipulated under relevant legislation, unless they conflict with the new provisions or future directives issued by the Head of the Audit Bureau, according to news reports.
Agents are mandated to exercise due care in safeguarding managed funds, with the standard of care equivalent to that of a reasonable person, and are strictly prohibited from delegating their duties without prior written approval from the Public Prosecution.
Their authority is limited strictly to administrative functions, and any action outside this scope requires prior authorization. The use of seized funds for personal benefit is explicitly prohibited, as is any engagement with individuals whose assets are under seizure.
The decision further obliges agents to refer all related requests concerning frozen funds to the Public Prosecution and to disclose any potential conflicts of interest involving either the funds under management or the individuals concerned.
In addition, agents must submit comprehensive semi-annual reports to the Public Prosecution, detailing financial positions, revenues, expenditures, cash flows, and full administrative activity.
A copy must also be submitted to the Audit Bureau within 15 days of the reporting period, with the Bureau authorized to raise observations and notify relevant parties.
Agents will continue their duties until the conclusion of the case, the lifting of the freeze order, or an official decision relieving them of responsibility. In cases of resignation or termination, they must ensure a proper transition to prevent any risk to the managed funds.
Article Three of the decision grants the Head of the Audit Bureau the authority to amend, add, or cancel any of the stipulated controls, either generally or on a case-by-case basis, in accordance with public interest or the protection of the funds under administration.
