KUWAIT CITY, July 30: The concerns raised by experts about the susceptibility of Kuwait’s food market to penetration by money laundering operations underscore the need for robust legislative and regulatory measures to close existing legal loopholes. The Kuwaiti food market has seen massive and steady growth, which is understandable given the country’s population increase in recent years. Despite this growth, the market is vulnerable to the infiltration of “dirty money” or “black money” through legal loopholes that need to be addressed legislatively.

The local food market is valued at over $30 billion, with more than 70 cooperative societies controlling about 75% of retail trade in the country. There has been a proliferation of wholesale and retail food centers, some of which sell products at lower prices than cooperatives and central markets, while others see little to no consumer activity. Experts are concerned about the financial sustainability of these centers, questioning the logic behind maintaining operations that incur continuous losses. Professor of Accounting at Kuwait University, Dr. Sadiq Al-Bassam, has expressed surprise at the unusually large number of food centers, hinting at possible money laundering activities behind their spread.

He stressed the importance of verifying the capital of these centers. Ali Al-Attar, a lawyer specializing in money laundering cases, highlighted the significant increase in money laundering in recent years. He emphasized the need for stringent checks on food centers and pharmacies, pointing out that food bills can be easily manipulated for laundering purposes. He called for comparing company books, invoices, and documents with capital and sales activity to ensure legality.

There is a pressing need for tightening control over the food sector to prevent it from becoming a conduit for illicit funds. Authorities should implement the anti-money laundering law rigorously, comparing the movement of funds in bank accounts and registered capital with the volume of sales recorded in company books. Ensuring the legality of transactions and verifying that business activities do not conceal funds from illegal sources is crucial for maintaining market integrity. The warnings and recommendations highlight the importance of vigilant oversight and proactive legislative actions to safeguard Kuwait’s food market from exploitation by money laundering operations

By Najeh Bilal

Al-Seyassah/Arab Times Staff