Major laundering operation worth KD 255 million seized, resulting in imprisonment of 19 individuals
Chaotic Laundering Scandal:
A massive money laundering case in Kuwait sent shockwaves through the nation involving 29 individuals and nine companies from varying sectors such as imports, exports, general trade, money exchange, and food delivery. This group, found guilty of organized money laundering, has been slapped with severe penalties, fines, deportations, and asset confiscations worth approximately $2.5 billion, according to Al Jarida, an Arabic daily.
Judgment Day:
Led by Counselor Al-Dhuwaihi Al-Dhuwaihi, the Criminal Court ruled on Thursday that the defendants - citizens and residents - would face prison sentences ranging from three to ten years, with fines totaling around $1.6 billion. Notably, penalties were double the laundered amount in this case.
Machinations of Criminality:
This criminal network laundered funds from acts detrimental to national interests, with charges including document forgery, fraud, customs evasion, illegal imports, and violations of due diligence protocols. They even dabbled in the underhanded sale of banned chewing gum imports.
Fines and Punishments:
In total, seven defendants were fined KD 510 million (approximately $1.6 billion), doubling the laundered amount. Three others were fined KD 80,000 (approx. $261,000), and one was fined KD 100,000 (approx. $326,000), an amount equivalent to half the laundered value. Involved companies were hit with fines totaling KD 255 million (approx. $832 million), matching the value of the criminal assets.
Exile and Seizure:
The court also mandated the deportation of convicted residents following their prison terms and the confiscation of forged documents, criminal proceeds, and laundered funds.
The Whirlwind of Crime:
Investigative records reveal that the first and 20th defendants collected illicit cash through an exchange company under the first defendant's control. The fifth defendant then distributed the money to other implicated companies and individuals. Funds were then transferred abroad either through banks or exchange companies, with 28th and 29th defendants, as company directors, signing the remittance forms for all transfers.
Organized Crime Looms Large:
Reports show that defendants took possession of illicit funds and used them to conceal their origin, ownership, and related rights by carrying out foreign transfers. The court described the crimes as grave, organized, and far beyond isolated incidents. Their actions badly harmed national interests, aimed to destabilize the economy, and weakened trust in financial institutions. These operations formed hidden channels for illegal funds, evaded oversight, and caused damage to the national economy by enabling unfair competition and undermining anti-corruption efforts.
Courageous Confrontation:
By imposing substantial penalties and incarceration, the court demonstrated its resolve in confronting such practices. It emphasized that the nation's interests supersede all economic and commercial activities and stressed the importance of upholding the rule of law, enshrining justice, and dissuading any attempts to undermine the nation's economic and national security.
While the specifics of how money laundering was executed across sectors like food delivery remain unclear, the use of diverse business types and financial channels likely enabled the group to disguise illicit funds as legitimate income, further highlighting the challenging task of balancing economic growth with anti-corruption efforts.
- The criminal network, found guilty in the money laundering case, received millions through an exchange company under the first defendant's control.
- The court ruled that the defendants had laundered funds enabling finance for various crimes and activities in the general-news and crime-and-justice sectors.
- Enabling unfair competition and undermining anti-corruption efforts, the money laundering operations formed hidden channels for illegal funds, evaded oversight, and caused damage to the national economy.
- To address the chaotic laundering scandal, the court mandated the deportation of residents, the confiscation of forged documents, criminal proceeds, and laundered funds, and imposed fines worth millions on the defendants and involved companies.
