Kuwait is actively developing legislation to criminalise terrorism financing, aiming to align with key United Nations Security Council resolutions and address recommendations from the Financial Action Task Force (FATF). Assistant Foreign Minister for Development and International Cooperation, Ambassador Hamad Al-Mashaan, emphasised this initiative during a workshop titled “Targeted Financial Sanctions, Asset Recovery and Mutual Legal Assistance,” organised in collaboration with the International Institute for Justice and the Rule of Law.
The workshop aims to enhance the competencies of Kuwaiti officials in implementing international obligations under Security Council resolutions, focusing on precautionary measures to prevent terrorist organisations from exploiting the financial system.
This development follows the FATF’s mutual evaluation report published in October 2024, which acknowledged Kuwait’s adequate legal and supervisory framework but highlighted “serious shortcomings delivering effective outcomes,” particularly in understanding, investigating, and prosecuting money laundering and terrorist financing cases.
Kuwait’s existing legal structure includes Law No. 106 of 2013, which addresses anti-money laundering and combating the financing of terrorism. However, the FATF report indicated that while banks and larger financial institutions understand their risks and obligations well, supervisors in both financial and non-financial sectors need to focus more on beneficial ownership.
The workshop also delves into FATF Recommendations 6 and 7, emphasising the importance of developing laws to criminalise terrorism financing and implementing key UN Security Council resolutions on financial sanctions. Additionally, sessions focus on asset recovery, freezing, confiscation, and mutual legal assistance, based on FATF Recommendation 4, to enhance cross-border cooperation in combating financial crimes.
