A recent government report revealed that the Financial Investigations Unit received 2,570 notifications of suspected money laundering or terrorist financing in the past year.
According to Article (16) of the Executive Regulations of the Anti-Money Laundering and Terrorism Financing Law, financial institutions and non-financial businesses must notify the unit within two business days of suspicious transactions and related information.
The ninth report issued by the unit, a copy of which was obtained by Al-Anba, revealed that the banking sector submitted the most notifications, accounting for 77% of the total, with 1,977 notifications during the year.
Exchange companies followed with 22% of notifications, totaling 566, while electronic payment companies submitted 20 notifications. Financial brokerage companies reported 5 notifications, and companies dealing in precious metals and gemstones, as well as financing companies, each submitted one notification.
The Financial Investigations Unit is authorized to obtain any information, data, or documents it deems necessary to perform its duties from the competent authorities, notified entities, and counterpart units, as outlined in Article (18) of Law 106/2013.
The report indicated that the unit requested information from the competent authorities during the preparation of its ninth report for the fiscal year 2023/2024. This was done to enhance the data received from the notified entities and enable the unit to assess whether the information could be considered reasonable evidence of suspicion.
The Financial Investigations Unit made approximately 581 information requests to five competent authorities during the year. The Ministry of Interior accounted for the largest share, with about 34% (199 requests), followed by the Ministry of Commerce and Industry with 21% (122 requests).
The Ministry of Justice made up 18.4% of the requests, with 107 requests, followed by the Kuwait Clearing Company with 87 requests, and the General Administration of Customs with 66 requests.
According to Article (19) of Law 106/2013, the Financial Investigation Unit has the authority to notify the Public Prosecution if it finds reasonable evidence suggesting that funds are derived from a crime or linked to money laundering or terrorist financing activities. The unit also has the option to refer relevant information to the competent authorities.
Throughout the year, the Financial Investigations Unit submitted 61 reports to the Public Prosecution, which included 101 notifications, information referrals, and international cooperation referrals.
Additionally, the unit made approximately 22 referrals to the competent authorities, encompassing 99 notifications, information referrals, and international cooperation referrals.
It is important to note that the referrals made by the Unit to the Public Prosecution or the competent authorities typically include a report, which often contains multiple notifications.
Regarding the Kuwaiti Financial Investigation Unit’s collaboration with counterpart units, international cooperation is facilitated through a structured mechanism for exchanging information related to combating money laundering and terrorist financing. This involves requesting and receiving information from counterpart units or providing information in line with established procedures and in adherence to the principles of the Egmont Group.
In the context of international cooperation, the Financial Investigation Unit received 33 information requests last year and 16 referral requests. Additionally, it issued 6 information requests, bringing the total number of requests to 55.
