Cairo: As of October 1, cash sales of cars will be banned in Kuwait as part of a crackdown on money laundering.
The ban comes in line with a decision issued by Kuwaiti Minister of Commerce and Industry Khalifa Al Ajeel whereby payment in car deals will be limited to banking channels.
The Ministry of Commerce and Industry said the decision is part of its efforts to curb dubious money laundering operations and financial crimes in the country.
A ban on cash dealing will “effectively” help limit financial crimes and fill the gaps linked to money laundering in particular, the ministry added.
“Restricting cash sale will enable the competent agencies to track down the money movement, and verify their sources, banks, final destination and avoidance of any illegal crimes,” it said in a statement.
Violators will be liable to “one or more of measures and penalties stipulated in relevant laws,” the ministry added without elaborating.
It emphasised its commitment to enforce measures aimed to combat financial crimes, including money laundering that the ministry said constitute a “challenge and a threat” to economic growth and sustainable development.
In recent months, Kuwaiti courts have issued rulings in several money laundering cases.
Last year, the Criminal Court sentenced a member of the ruling family, a partner, and two expatriates to 10 years in prison each in a high-profile money laundering case.
The defendants were also ordered to return $1 billion and pay fines totalling KD145 million.
In February, a Kuwaiti court sentenced seven expatriates to seven years in prison each on charges of money laundering, fraud and blackmail.
The court also ordered the defendants be deported after serving the terms.
The case is related to a legal complaint filed by a Kuwaiti citizen to authorities that he was defrauded of KD157,000 after two expatriate women in Kuwait duped him into investing money via trading platforms abroad allegedly in return for quick profits.
