Kuwait’s FIU is finalizing a contract with Financial Transparency Advisors for 6.1 million euros to aid in combating money laundering and terrorism financing. The SAB has approved this contract, emphasizing market rate compliance and the training of local staff. FATF’s recent report criticized Kuwait for serious shortcomings in addressing these issues despite an adequate legal framework.
Kuwait City’s Financial Investigations Unit (FIU) is nearing the conclusion of procedures to engage Financial Transparency Advisors (FTA), a firm located in Vienna, Austria. This partnership will provide specialized advice and technical support as Kuwait strives to enhance its strategies against money laundering and terrorism financing. This initiative is particularly pertinent amid the ongoing evaluations by the Financial Action Task Force (FATF) and the International Cooperation Review Team.
The State Audit Bureau (SAB) has assessed the direct contracting documents and has raised no objections to proceeding with the contract with FTA, valued at 6.1 million euros, to be completed over a period of 19 months, concluding on March 31, 2026. SAB has stressed the importance of ensuring that FTA’s pricing aligns with market standards while also emphasizing the necessity for FIU to focus on training and developing local personnel to effectively manage related tasks, thereby avoiding excessive public expenditure on external contracts.
Despite possessing a robust legal and regulatory framework, in its latest report last October, FATF identified “serious shortcomings” in Kuwait’s measures against money laundering. The report noted that Kuwait has not adequately addressed issues of money laundering and terrorism financing. However, it recognized that critical regulatory agencies such as the Central Bank and other authorities have a substantial understanding of these systemic risks.
Kuwait’s Financial Investigations Unit is taking significant steps by contracting Financial Transparency Advisors to bolster its initiatives against money laundering and terrorism financing. The oversight from the State Audit Bureau underscores fiscal responsibility in this endeavor. Although challenges remain, as highlighted by the FATF, the collaboration with FTA is aimed at strengthening Kuwait’s compliance and enhancing internal capabilities.
Original Source: www.arabtimesonline.com
