Latest news with #CombatingMoneyLaunderingandTerroristFinancing
Gulf Today
4 days ago
- Business
- Gulf Today
Life in jail, Dhs10 million fine for money laundering in UAE
Money laundering crime in the UAE is penalized by life imprisonment, a fine of up to Dhs10 million, and deportation for foreign offenders, according to lawyer and legal consultant Omar Al Awadi who emphasised that the UAE has tightened its measures against such crimes due to their severe impact on the financial and economic systems. Under Federal Law No. 26 of 2021 on Combating Money Laundering and Terrorist Financing, money laundering is treated as a major crime, with stringent penalties for individuals and entities involved. Al Awadi noted that strict administrative sanctions have been adopted for those who neglect or cooperate in such crimes, including the temporary or permanent closure of involved establishments and the cancellation of commercial licences in some cases. The money laundering crimes include depositing illicit funds in banks to disguise them as legitimate, purchasing real estate or vehicles using proceeds from criminal activities, transferring funds abroad to conceal their true source, and financing unauthorised or illegal organisations, according to the law.
Arab Times
26-04-2025
- Business
- Arab Times
Nazaha pushes for stronger laws against financial crimes
KUWAIT CITY, April 26: The Kuwait Anti-Corruption Authority (Nazaha) recently concluded the first legal forum, held at its headquarters in Shamiya, with the theme, 'The Law on Money Laundering and Terrorist Financing Crimes: Facing Challenges.' A group of legal experts and academicians, representatives of regulatory and competent authorities, as well as financial institutions and designated non-financial businesses and professions, attended the forum. The following are the five recommendations presented at the forum: Strengthen coordination between all public regulatory and competent authorities in charge of combating money laundering, financing of terrorism and proliferation of weapons of mass destruction. Intensify training and qualification programs for employees of regulatory and competent authorities in charge of combating money laundering, financing of terrorism and proliferation of weapons of mass destruction. Raise community awareness on the risks of money laundering and terrorist financing. Call on the legislature to review certain legal provisions to enhance the effectiveness of procedures, close legal loopholes, and keep pace with technological developments, in line with the international standards of the Financial Action Task Force (FATF). Prepare guidelines for financial institutions and designated non-financial businesses and professions, which contribute to clarifying legal and regulatory requirements and enhance regulatory and legal compliance, in accordance with international law and standards. On the other hand, Director of the Legal Affairs Department at Nazaha Abdul Hamid Al-Hamar stressed the need to intensify national efforts in relevant sectors and agencies, and to continuously update legal frameworks to keep pace with the development of criminal methods in money laundering and terrorist financing crimes. He emphasized the direct threat these crimes pose to the financial and security stability of countries. He added that the discussion session stems from Nazaha's pivotal and important role in periodically studying legislation and legal tools related to combating corruption and proposing necessary amendments. 'It also explores the legal and regulatory frameworks adopted to combat money laundering and terrorist financing crimes, in addition to reviewing the latest methods used in these crimes and methods for tracking and detecting them. The panelists tackled several topics, including the legislative structure of Law No. 106/2013 on Combating Money Laundering and Terrorist Financing, both in terms of wording and content, and the effectiveness of the legal provisions in practice, in light of the outcomes of judicial rulings and practical applications,' he elaborated. He went on to say that they discussed developments in financial technology and the legal and regulatory status of virtual and digital assets, as well as improving mechanisms for international cooperation and information exchange between relevant authorities and their counterparts in other countries. 'They stressed the need to continuously update relevant laws and regulations to keep pace with rapid developments in money laundering and terrorist financing methods, especially in light of the increasing reliance on digital and modern technology,' he concluded.
Arab Times
24-03-2025
- Business
- Arab Times
Kuwait Imposes Fines of Up to 10,000 Dinars for Money Laundering Violations
KUWAIT CITY, March 24: The Minister of Commerce and Industry, Khalifa Al-Ajeel, issued Ministerial Resolution No. 25 of 2025, outlining rules and procedures for violations, penalties, and measures related to designated non-financial businesses and professions (DNFBPs) concerning the fight against money laundering and terrorist financing. The resolution introduces a framework with three levels of violations: low, medium, and high risk. Penalties for violations include written warnings, license suspensions or withdrawals, and fines ranging from 500 to 10,000 Kuwaiti dinars. Article 1 of the resolution incorporates the definitions set out in Article 1 of Law No. 106 of 2013 on Combating Money Laundering and Terrorist Financing, with additional definitions for the three levels of violations: low-risk violations, which are unintentional, pose no reputational harm, and are limited in nature; medium-risk violations, which cause moderate reputational damage; and high-risk violations, which cause significant reputational harm both locally and internationally. Low-risk violations are detailed under Article 2 of the resolution, based on Law No. 106 of 2013, its Executive Regulations, and related ministerial decisions. Common low-risk violations include failure to comply with due diligence for invoices under 3,000 dinars. This violation, often due to unintentional errors, is addressed on a case-by-case basis. If fewer than 50 invoices are involved, a written warning is issued, and for more than 50, the license is suspended for one month. Other low-risk violations include failure to implement an ongoing training program for employees, failure to submit accurate transaction documents, and failure to comply with other obligations. Penalties range from written warnings to license suspension for up to three months in the case of repeated violations. For medium-risk violations, penalties range from 500 to 3,000 dinars, depending on the severity of the offense. These violations include handling cash amounts exceeding 3,000 dinars. For fewer than 50 violating invoices, a fine of 1,000 dinars is applied, and for more than 50 invoices, the fine is 3,000 dinars. Other medium-risk violations include failure to appoint a Kuwaiti compliance auditor, failure to implement due diligence procedures for invoices exceeding 3,000 dinars, failure to maintain financial records for five years, and failure to terminate relationships with customers when due diligence measures cannot be applied. Repeated violations lead to increased penalties. High-risk violations, the most severe category, carry penalties ranging from 4,000 to 10,000 dinars. Key high-risk violations include failure to notify the Security Council Resolutions Implementation Committee about customers included on sanctions lists. The penalty for this violation is a fine of 5,000 dinars, with repeat offenders potentially being banned from operating in the relevant sector for up to one year. Other high-risk violations include failure to establish a mechanism for notifying employees of sanctioned individuals, providing services to individuals included on sanctions lists, and failure to notify the Kuwait Financial Intelligence Unit about transactions involving potentially illicit funds. Penalties for these violations range from fines of 4,000 to 10,000 dinars, depending on the severity and recurrence of the offense. Additionally, violations for failure to submit a facility risk assessment study will incur a fine of 500 dinars, with the penalty increasing to 1,000 dinars for repeated offenses. This Ministerial Resolution establishes a comprehensive framework for penalizing violations related to money laundering and terrorist financing, reinforcing Kuwait's commitment to strengthening its financial and regulatory systems.
