Money laundering and terrorism financing are two sources of serious concern for governments, security agencies and financial institutions worldwide. In Kuwait, although these two problems are not very prevalent, the authorities have taken several precautionary steps, including the introduction in 2013 of new law (No.103) to combat money laundering and the financing of terrorism.
Through Article 16 of the new law, the government also set up an independent Financial Intelligence Unit (FIU) charged with receiving, applying for, analysing and transferring information related to what is suspected of being the proceeds of money laundering or monies used to finance terrorism, either in part or in whole.
In order to curb the instances and effects of such illegal and illicit transactions, and with the aim of stopping those associated with financing terrorism and money laundering, the FIU recently updated 36 indicators to help banks monitor the activities of individuals who are involved in illegal activities.
Among the indicators, circulated to banks, financial institutions and foreign exchange companies, Among the most prominent indicators of the circular, are refusal by a client to deal with female employees and frequently changing persons who are authorized to operate a particular account, as well as information that indicates support for publications or extremist actions.
The circular also mentioned new clients who frequently ask employees about disclosure, reporting, or recordkeeping requirements and other details, not to mention clients who do transactions on behalf of other people, and the initiative of a person to open multiple accounts, in addition to the client’s regular travel to areas of conflict, frequent transfers to foreign countries, which show no working relationship with the countries of destination.
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