KUWAIT CITY: According to experts, the Ministry of Commerce and Industry’s recent decision to allow the sale of cars priced above KD 1,500 only through bank transactions will help curb money laundering activities associated with the luxury car trade. They said the money laundering mafia has enlisted a group of young people known as “hunters” to target individuals looking to sell their cars at sales and purchase exhibitions in various areas of Kuwait, adding that these “hunters” offer car owners the amount they desire in exchange for selling their vehicles.

The sources demanded the Ministry of Commerce and Industry restrict the purchase of gold, airline tickets, valuables and pigeon auctions to determine the source of the money used for these activities. They stressed the need to hold accountable any party that refuses to disclose all its invoices, as it will otherwise be considered a partner with money launderers, especially since invoices are exploited to manipulate money laundering operations. In this regard, Lawyer Jarrah Al-Wawan said the decision of the Ministry of Commerce and Industry to ban the sale of cars in cash if the cost exceeds KD 1,500 is a pioneering step to prevent money laundering through the luxury car market where cars are being sold for unimaginable amounts.

He explained that money launderers in this field use “hunters” to stand in front of car showrooms in the Al-Rai area and ask those entering the parking lots if they are planning to sell their car “at the amount you want”.

In this way, money laundering is done through buying and selling cars. Lawyer Al-Wawan said, “Other methods include the opening of many food centers through one company. However, is it reasonable for a food center to open no less than seven major centers in one area despite the recession?” He called on the regulatory authorities to examine these centers, and the Ministry of Commerce and Industry to tighten the granting of branches to these centers. Lawyer Al-Wawan warned about commercial centers that tempt consumers to take their data in exchange for a debit card, stressing that this data can be manipulated and money can be laundered in their names without their knowledge, adding that this is what is done by some money-exchange companies. He stressed that the money laundering mafia has extraordinary innovative skills but the investigation officers and regulatory authorities in banks also have the means to find these money launderers.

Lawyer Al-Wawan said, “About ten years ago, a person could establish a limited liability company in the general trading and contracting sector by simply depositing KD 100,000, and this would be accepted. However, this practice has since been curtailed, and such transactions are now subject to thorough auditing.” He revealed that if financial suspicions arise, the matter is referred to the competent authorities, but some customers deposit daily amounts of up to KD 3,000. Those with “distinguished customer” status are allowed to deposit up to KD 5,000 daily. This can be exploited for money laundering activities. Lawyer Al-Wawan demanded the necessity of reducing the value of the daily deposit to prevent money laundering through daily deposits.

He said, “Those who make daily deposits, whether KD 3,000 or KD 5,000, must be investigated by reviewing all invoices and documents, as well as summoning the person who gave them the amount to verify the legality of the deposit operations.” Lawyer Al-Wawan also revealed a serious issue, explaining that there are companies that have approved programs through which a link is sent to customers. A single transaction may be KD 250,000, and thus these amounts are deposited into the customers’ account and the company receives fees for each link. In addition, he disclosed that money laundering is done through the purchase of gold and other jewelry, as well as pigeon auctions, sale of valuable watches and other collectibles, which are considered back doors for money laundering.

Lawyer Al-Wawan warned people to avoid responding to scammers via phone or social media. These scammers make enticing offers to lure victims, hack their accounts, and then launder money through them. He indicated that the financial crime mafia has a network of followers specifically designed to trap more victims. Also, Lawyer Al-Wawan stated that gold can be purchased through jewelry stores that have increased dramatically in the country, despite the lack of increase of salaries for citizens and the limited salaries of expatriate workers, adding that there are huge quantities of gold that are sold to customers permanently.

Professor of Computer Science at Kuwait University and political expert Dr. Ahmad Al- Munais said the issue of money laundering has dangerous dimensions for the country, as it helps the criminals hide their crimes by camoufl aging the source of the proceeds that were obtained illegally as if they came from legitimate sources

 

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