By KUNA
Kuwait : The latest technologies used in Kuwait to combat money laundering and financing of terrorism were reviewed Sunday at the Regional Conference for Anti-Money Laundering and Combating the Financing of Terrorism by an official at the Central Bank of Kuwait (CBK).
In his paper, Deputy Director of the civil monitoring department at CBK Talal Al-Sayegh said money laundering is a process whereby the origin of funds generated by illegal means such as drug trafficking, gun smuggling, and corruption is concealed.
He noted that acts of money laundering aim at concealing the origins of funds gained through illegal activities by making it seem that they came from a legitimate source, while financing terrorism is an execution of a crime.
The source of money used in financing terrorism is usually legitimate, contrary to that in money laundering, he added.
Criminals attempt to conceal the true origins of their funds by disguising the sources, changing the form, or moving the funds to a place where they are less likely to attract attention.
The money is deposited and moved around in a series of complex transactions crossing multiple jurisdiction, so it becomes difficult to identify original source and then moved back into the financial and business system, so that it appears as legitimate funds or assets, he added.
Kuwait’s efforts in combating this phenomenon enabled it to join the Financial Action Task Force (FATF), through the secretariat general of the Gulf Cooperation (GCC) and the implementation of the 40 recommendations, he continued to say.
Other efforts include the formation of the National Committee for Anti-Money Laundering and Combating the Financing of Terrorism and joining the Middle East and North Africa Financial Action Task Force (MENAFATF).