Kuwait Tightens the Net—New Deals with India and Iraq Boost Financial Vigilance

Image Source: The New Indian Express

In a significant step to enhance further its financial credibility, Kuwait has entered two standalone memoranda of understanding (MoUs) with India and Iraq for greater cooperation in antimoney laundering (AML) and counterterrorist financing (CTF). The MoUs are a strategic step to create a more transparent and secure financial landscape across borders.

Main Points of the Agreements:

Kuwait's Financial Intelligence Unit concluded MoUs with India's AntiMoney Laundering Bureau and Iraq's AML/CTF Bureau
The accords prioritize sharing timely information, technical analysis, and joint investigations
They are in accordance with Egmont Group international standards and FATF guidelines
Kuwait aims to enhance crossborder collaboration to stem illicit financial flows and terror transactions
The MoUs include capacity building, data sharing agreements, and coordinated enforcement measures

Strategic Implications

The IndiaKuwait pact will allow for the sharing of intelligence and closer crossborder monitoring of suspicious transactions
The IraqKuwait agreement is based on current cooperation and facilitates mutual data exchange for AML enforcement
The longterm objective of Kuwait is to create a transparent, stable, and internationally compliant financial environment.
Such transactions are followed by a rise in local threats and a demand for collective financial monitoring mechanisms
The project helps Kuwait in ongoing efforts to strengthen its AML regime and its contribution to international financial security

Sources: Zawya, Financial Action Task Force (FATF), Sanction Scanner, Riskpro Learning, US Department of State Country Reports on Terrorism 2023