Kuwait’s FIU is finalizing a contract with Austrian advisory firm FTA to enhance its efforts against money laundering and terrorism financing. The State Audit Bureau approves the €6.1 million contract but emphasizes the need for market-rate pricing and investment in local training. FATF has noted previous shortcomings in Kuwait’s compliance efforts.
Kuwait’s Financial Investigations Unit (FIU) is nearing the conclusion of procedures to engage Financial Transparency Advisors (FTA), a Vienna-based advisory firm. This partnership aims to bolster Kuwait’s initiatives against money laundering and terrorism financing amid oversight from the Financial Action Task Force (FATF) and the International Cooperation Review Team.
The State Audit Bureau (SAB) has examined the proposed direct contracting documents and has not raised any objections to the agreement with FTA, which amounts to €6.1 million and is expected to last for 19 months, concluding on March 31, 2026. The SAB has stressed the necessity for FIU to ensure that the fees charged by FTA are reasonable and consistent with current market rates for similar services.
Furthermore, the bureau emphasized the importance of enhancing the capabilities of national personnel tasked with relevant responsibilities. This training is crucial to minimize financial strain on public resources stemming from additional special contracts that may arise. In a report from October, FATF observed notable “serious shortcomings” in Kuwait’s actions against money laundering, despite the establishment of an adequate legal and regulatory framework. It recognized the understanding of risks by regulatory bodies such as the Central Bank, the Capital Markets Authority, and the Insurance Unit, while also highlighting failures in effectively addressing the issue.
In summary, Kuwait’s FIU is set to contract FTA for expert assistance in meeting FATF specifications, with a focus on combating money laundering and terrorism financing. The State Audit Bureau has approved this engagement, while also calling for responsible financial management and enhanced local training. FATF’s previous reports underline significant gaps in Kuwait’s approach, necessitating thorough and effective implementation of corrective measures.
Original Source: www.arabtimesonline.com
