KUWAIT CITY, Aug 13: Kuwait's Ministry of Commerce and Industry is intensifying efforts to curb money laundering and terrorist financing by expanding restrictions on cash transactions, particularly in the car sales sector. The ministry aims to bolster Kuwait’s international standing in combating financial crimes by introducing new regulations that will phase out cash payments for high-value car purchases.

According to sources who spoke to Al-Rai, ongoing discussions between Minister of Commerce Eng. Omar Al-Omar and Central Bank of Kuwait Governor Basil Al-Haroun focus on regulating cash transactions within the car sales industry. The proposed regulation will require car sales agencies and companies to accept only electronic payments, such as “knet,” for transactions exceeding 1,500 dinars.

Minister Al-Omar emphasized that this initiative is part of a broader strategy by the Ministry of Commerce to address money laundering—a significant threat to global economic stability and sustainable development. Money laundering undermines the economic cycle and poses risks to the commercial, financial, and banking sectors by facilitating illegal activities.

In a bid to strengthen preventive measures, Al-Omar has proposed a coordinated ministerial decision in collaboration with the Central Bank. This move aims to enforce stricter regulations and foster cooperation among state agencies to combat the sophisticated methods of money laundering.

The introduction of these cash transaction restrictions is seen as a crucial step in tightening controls and closing loopholes that could be exploited for money laundering. By shifting to electronic payments, government agencies will be better equipped to track the flow of funds, verify their origins, and monitor their destinations.

The Ministry of Commerce is also focused on developing digital transaction controls and standards that align with global economic and financial trends. This approach will enhance Kuwait’s defenses against money laundering and improve its standing with international organizations.

Additionally, regulating cash sales in the car industry is expected to aid in monitoring sales and bank transfers, improving the accuracy of financial data, and supporting tax collection efforts. By creating a comprehensive database of car sales, the ministry aims to reduce regulatory challenges and ensure transactions are conducted within the official system.

The new regulations will also apply to other sectors, including:

1. Real estate transactions.
2. Sales in private pharmacies for amounts exceeding 10 dinars.
3. Purchases from permanent and temporary exhibitions of all kinds and domestic labor recruitment offices.
4. Cash transfers exceeding 3,000 dinars.

These measures reflect Kuwait’s commitment to enhancing its economic and financial environment while tackling the challenges of money laundering and financial crime.