In trying to clamp down on money laundering and terrorism financing, Kuwait is honing in on precious metals and property. Out of 930 violations recorded last year, 544 were by jewelry companies and the rest by real estate brokers — most just attracted warnings, but some fines and compliance orders were also handed out.
The issue has become even more important after international money laundering watchdog the Financial Action Task Force put Kuwait on its “grey list” in February, alongside the likes of Lebanon, Monaco, and Yemen. That status makes it harder to attract investment at a time when Kuwait is keen to diversify its economy, and it seems to have focused minds in the country. Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah has been holding monthly meetings to review efforts to address the issues raised by FATF. Kuwait’s action plan includes greater scrutiny of real estate agents and precious metal and gemstone dealers, as well as tightening up reporting on beneficial ownership information.