Kuwait’s Ministry of Social Affairs to Amend the Executive Law to Fight Money Laundering and Terrorism

Kuwait’s Ministry of Social Affairs is currently reviewing a proposal to amend the executive regulations of Law 106/2013 concerning terrorist financing and money laundering. 

The Kuwaiti Ministry of Social Affairs is amending the executive law to combat money laundering and terrorist financing to enhance the supervisory role. Upon submission, it will be forwarded to the Ministry of Finance, responsible for the amendment process.

A Ministry of Social Affairs spokesperson explains that the amendments are part of a new initiative to prevent abuse of financial regulations regarding public utilities. The ministry’s responsibilities also includes understanding significant challenges state agencies faces, such as crime, money laundering, compliance trends or methods, and leveraging them for public benefit. This amendment would enhance the ministry’s supervisory role and tighten controls over civil public utility projects, particularly charitable projects.

The amendments will have a positive impact on Kuwait, notably as part of the November evaluation conducted by the Middle East and North Africa Financial Action Task Force (MENAFATF) to determine its effectiveness in curbing illicit financial flows, terror financing, to assess the efficacy or compliance of governmental, regulatory, and control measures in this area.

Further, the amendments comply with government agencies’ procedures that monitor charitable donations, ensuring that funds are safe, easily transferred, and delivered to approved authorities. The implementation of philanthropic projects must be accompanied by the prevention of funds falling into the hands of terrorists or extremists, being exploited by weak-minded individuals, or reflecting a calamity on Kuwait and distorting its reputation as a charitable or humanitarian organisation by some individuals.

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