Experts believe that the Ministry of Commerce and Industry’s recent decision to mandate bank transactions for cars priced over KD 1,500 will help combat money laundering linked to the luxury car market. They highlight that money laundering networks have recruited individuals known as “hunters” to target people looking to sell their cars at various exhibitions in Kuwait. These “hunters” offer sellers their desired price in cash, facilitating illicit transactions. Experts urge the Ministry to also regulate purchases of gold, airline tickets, valuables, and pigeon auctions to ensure the legitimacy of funds used in these transactions. They stress the importance of holding accountable any entity that fails to provide full invoicing, as such entities might be complicit in money laundering operations, particularly since invoices can be manipulated for laundering purposes.

Lawyer Jarrah Al-Wawan views the Ministry’s decision to ban cash sales for cars costing over KD 1,500 as a significant step in curbing money laundering in the luxury car sector. He explained that money launderers often use “hunters” to approach people in car showrooms, offering to buy their vehicles at their desired price.

Al-Wawan noted other money laundering tactics, such as opening multiple food centers under a single company, questioning how a food business could sustain so many outlets in a recessionary environment. He urged regulatory authorities to scrutinize these centers and for the Ministry of Commerce and Industry to tighten control over issuing branch licenses. He also warned about commercial centers that collect consumer data in exchange for debit cards, which can be exploited for laundering money without the victims’ knowledge, a tactic used by some money-exchange companies.

Al-Wawan mentioned that ten years ago, establishing a limited liability company required only a KD 100,000 deposit, but now such transactions are subject to rigorous audits. Suspicious financial activities are investigated, but daily deposits of up to KD 3,000 or KD 5,000—especially by “distinguished customers”—can be exploited for money laundering. He called for reducing the daily deposit limits to prevent misuse.

He further revealed that some companies use approved programs that send transaction links to customers, allowing substantial amounts, such as KD 250,000, to be deposited into accounts, with the company earning fees from each transaction link. Money laundering also occurs through buying gold, jewelry, and collectibles, which serve as alternative methods for laundering money.

Al-Wawan cautioned people against responding to scammers who use phone calls or social media to make fraudulent offers, hack accounts, and launder money. He warned that these scammers operate with a network designed to ensnare more victims. Additionally, he noted the proliferation of jewelry stores selling large quantities of gold, despite stagnant salaries for citizens and limited wages for expatriates.

Dr. Ahmad Al-Munais, Professor of Computer Science at Kuwait University and a political expert, emphasized that money laundering poses severe risks to the country by enabling criminals to disguise the origins of their illegal profits as legitimate funds.