Kuwait’s Financial Investigations Unit is contracting Financial Transparency Advisors for technical support in combating money laundering and terrorism financing. The State Audit Bureau approved the contract for 6.1 million euros over 19 months, stressing the importance of market alignment in pricing. FATF’s recent report indicated serious deficiencies in Kuwait’s efforts, despite a solid regulatory framework.
Kuwait’s Financial Investigations Unit (FIU) is nearing the completion of its contracting process with Financial Transparency Advisors (FTA), a Vienna-based firm. FTA will assist Kuwait in combating money laundering and terrorism financing, particularly during the evaluations by the Financial Action Task Force (FATF) and the International Cooperation Review Team. This collaboration aims to fortify Kuwait’s ongoing compliance efforts related to international financial standards.
The State Audit Bureau (SAB) has examined the documents for direct contracting and raised no objections to the engagement of FTA for 6.1 million euros over 19 months, concluding on March 31, 2026. The SAB underscored the necessity for the FIU to confirm that the firm’s pricing aligns with market rates and emphasized the continuous training of national personnel to adequately handle the relevant tasks, thus avoiding unnecessary public expenditure.
In its October report, FATF highlighted “serious shortcomings” in Kuwait’s fight against money laundering, despite the country’s favorable legal and regulatory framework. FATF noted that while the regulatory authorities, including the Central Bank, Capital Markets Authority, and Insurance Unit, possess a solid understanding of the risks involved, substantial progress is needed in addressing the identified issues related to money laundering and terrorism financing.
In conclusion, Kuwait’s collaboration with Financial Transparency Advisors aims to enhance its capabilities in combating financial crimes as it addresses FATF concerns. The positive assessment from the SAB regarding the contract reflects a promising collaborative effort, while ongoing training of national staff is necessary to ensure sustainable progress. The ongoing partnership reinforces Kuwait’s commitment to meeting international financial standards and effectively mitigating risks associated with money laundering and terrorism financing.
Original Source: www.arabtimesonline.com
