New law effective from October 1: Expats face fines and imprisonment if violated

KUWAIT CITY: The Kuwaiti government has stepped up measures to prevent black money transactions. As part of the prevention of money laundering, the sale of paid cars will be banned in Kuwait from October 1. Kuwaiti Minister of Commerce and Industry Khalifa Al Ajeel issued the order in this regard. Pursuant to this decision, payment related to car sales will be restricted to banking channels only.

The Ministry of Commerce and Industry said the decision is part of efforts to curb suspected money laundering and financial crimes in the country. The ministry added that the ban on money transactions would effectively help in curbing financial crimes and particularly in bridging the gaps related to money laundering.

Controlling paid sales is believed to prevent crime. The ministry also clarified that it will enable investigative agencies to check the movement, source and destination of money. Violation of this law may lead to severe penalties if noticed by the ministry in a statement.

The ministry said that financial crimes including money laundering are a challenge and threat to economic growth and sustainable development and stated that the government is committed to implementing measures aimed at combating them. Recently, cases of money laundering have been reported in Kuwait. Kuwaiti courts have also issued verdicts in several money laundering cases in recent months.

Last year, a member of the ruling family, his partner and two expatriates were sentenced to ten years in prison each by the criminal court in connection with money laundering. The court had also awarded a fine of crores of rupees to the accused. In February, a Kuwaiti court sentenced seven expatriates to seven years in prison on charges of money laundering, fraud and blackmail.