Kuwaiti Trade Union Signs MoU With Gold Traders Federation To Combat Money Laundering
Ministry of Commerce and Industry (MoCI) signed today, Monday, with the Kuwait Federation of Gold and Jewelry Traders, a memorandum of understanding (MoU) on cooperation and implementation of Law No. (106) of 2013 regarding combating money laundering and terrorist financing.
MoCI said in a press statement that the memorandum also aims to implement Ministerial Resolution regarding the controls regulating the work of institutions and companies operating in the field of trading in gold, precious stones and precious metals. The MoU specified the regulations must be adhered to by the members of the union in addition to assessing the risks of customers and transactions. It stated that the memorandum prohibited union members from establishing business relationships with unidentified clients as well as keeping records and notifying the Kuwaiti Financial Investigation Unit of suspicious transactions within a maximum of two working days.
It also included the union’s approval of indicators that help merchants monitor suspicious transactions through the website of the Kuwaiti Financial Investigation Unit, in addition to not receiving cash amounts exceeding three thousand Kuwaiti dinars (about $9200) or the equivalent in foreign currency when performing one or several transactions.
Also emphasized was that it was necessary for the merchant to commit to establishing a commercial contracting system linked to international sanctions lists and to stop dealing with persons whose names are included in the Security Council’s sanctions list related to “terrorists”. According to the MoU, the federation is implementing a continuous program to train all new and current members with instructions to all companies or institutions to review the information of clients who conduct transactions to verify the validity of the data and documents obtained and update them permanently.