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       KUWAIT CITY, June 30: The Financial Action Task Force (FATF) has identified significant areas for improvement in Kuwait’s efforts to combat money laundering and terrorist financing. The international body emphasized the need for Kuwait to better understand the risks associated with these crimes, enhance its investigative and prosecutorial capabilities, and ensure the immediate freezing of assets linked to terrorist financing or the financing of weapons of mass destruction.

       These findings were highlighted during FATF’s sixth and final general session, which concluded yesterday. Observers noted that the current deficiencies place Kuwait under enhanced monitoring for such crimes. FATF stressed the importance of preventing the misuse of legal entities and implementing measures to protect the non-profit sector from being exploited for terrorist financing.

       The FATF, which encompasses over 200 jurisdictions and international organization observers, acknowledged Kuwait’s existing legal and supervisory framework as appropriate for addressing money laundering and terrorist financing. However, it also pointed out several shortcomings in the country’s evaluations.

       Dr. Mohammed Bouzbar, a Professor of Criminal Law at the Faculty of Law at Kuwait University, commented on the FATF’s recommendations to Al-Jarida. He explained that enhanced monitoring is a process used by FATF to oversee countries with strategic deficiencies in their systems for combating money laundering and terrorist financing. This process ensures that the concerned countries take timely steps to address these shortcomings.

       Dr. Bouzbar emphasized that countries under enhanced monitoring are required to submit periodic reports to FATF, detailing progress in implementing an agreed-upon action plan. These reports must include information on the improvements made to policies, legislation, and regulations related to combating these financial crimes.

       “If a country fails to take the necessary measures within the specified time frame, it may face additional actions from FATF, including being placed on the grey or black list,” Dr. Bouzbar noted. “This could significantly impact the country’s reputation and its ability to engage with the international financial system.”

       The joint assessment of Kuwait by FATF and the Middle East and North Africa Financial Action Task Force (MENAFATF) underscores the urgency for Kuwait to enhance its efforts in tackling money laundering and terrorist financing to maintain its standing in the global financial community.

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