Money laundering flourishes in Kuwait as number of fake trade mafias increases – ARAB TIMES – KUWAIT NEWS

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KUWAIT CITY, Aug 17: Experts say the recent decision by the Ministry of Trade and Industry to allow the sale of cars above KD 1,500 only through banking will help curb money laundering activities related to luxury car trading. They said the money laundering mafia has recruited a group of young people called “hunters” to target people who want to sell their cars at sales and purchase fairs in different areas of Kuwait. These “hunters” offer car owners the desired amount for selling their vehicles.

The sources called on the Ministry of Trade and Industry to restrict the purchase of gold, air tickets, valuables and pigeon auctions in order to identify the origin of the money used in these activities. They stressed the need to hold accountable any party that refuses to disclose all its invoices, as otherwise it will be considered a partner of money launderers, especially since invoices are misused to manipulate money laundering operations. In this regard, lawyer Jarrah Al-Wawan said the decision of the Ministry of Trade and Industry to ban the sale of cars for cash if the price exceeds 1,500 KD is a groundbreaking step to prevent money laundering in the luxury car market, where cars are sold for unimaginable sums.

He explained that money launderers in this area are using “hunters” who stand in front of car dealerships in the Al-Rai area and ask those entering the parking lots if they intend to sell their car “for the desired amount”.

This is how money laundering is carried out through the purchase and sale of cars. Lawyer Al-Wawan said: “Other methods are the opening of many food centers by one company. However, is it reasonable for a food center to open no less than seven large centers in one area despite the recession?” He called on regulators to examine these centers and the Ministry of Trade and Industry to tighten the allocation of branches to these centers. Lawyer Al-Wawan warned against trading centers that lure consumers into exchanging their data for a debit card, stressing that these data can be manipulated and money laundered in their name without their knowledge, adding that this is done by some money exchange companies. He stressed that the money laundering mafia has extraordinary innovation capabilities, but the investigators and regulators in the banks also have the means to find these money launderers.

Lawyer Al-Wawan said: “About ten years ago, a person could establish a limited liability company in the general trade and contract sector by simply depositing KD 100,000, and this was accepted. However, this practice has since been restricted, and such transactions are now subject to thorough scrutiny.” He explained that if there are financial suspicions, the matter is referred to the relevant authorities, but some customers deposit amounts of up to KD 3,000 daily. People with the status of “distinguished customer” are allowed to deposit up to KD 5,000 daily. This can be exploited for money laundering activities. Lawyer Al-Wawan called for the need to reduce the value of the daily deposit to prevent money laundering through daily deposits.

He said: “Those who make daily deposits, whether 3,000 or 5,000 KD, must be investigated by checking all invoices and documents. In addition, the person who gave them the amount must be summoned to verify the legality of the deposit transactions.” Lawyer Al-Wawan also pointed out a serious problem, explaining that there are companies that have approved programs through which a link is sent to customers. A single transaction can be 250,000 KD, and therefore these amounts are deposited into the customer's account, and the company receives fees for each link. In addition, he revealed that money laundering is carried out through the purchase of gold and other jewelry, as well as pigeon auctions, the sale of valuable watches and other collectibles, which are considered backdoors for money laundering.

Lawyer Al-Wawan warned people not to respond to scammers by phone or social media. These scammers make tempting offers to lure victims, hack their accounts and then launder money through them. He pointed out that the financial crime mafia has a network of followers specifically designed to lure more victims into the trap. Lawyer Al-Wawan also explained that gold can be purchased through jewelry stores, which have increased dramatically in the country despite the lack of salary increases for citizens and the low salaries of foreign workers, adding that huge amounts of gold are sold to customers on a permanent basis.

Kuwait University computer science professor and political expert Dr. Ahmad Al-Munais said the problem of money laundering has dangerous dimensions for the country as it helps criminals hide their crimes by disguising the source of illegally obtained proceeds as if they came from legitimate sources.

By Najeh Bilal Al-Seyassah/Arab Times Staff

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