Saudi Arabia, Kuwait Strengthen AML Cooperation with New MoU

Recently, Saudi Arabia and Kuwait signed a Memorandum of Understanding (MoU) during a key GCC (Gulf Cooperation Council) financial intelligence summit in Kuwait. It aims to intensify their joint efforts against money laundering and terrorist financing.

This agreement follows a virtual workshop hosted to raise awareness among members of non-profit organizations about combating money laundering and terrorism financing, the Arab News reported.

This workshop covered several topics, including the risks and impacts of money laundering and terrorist financing, as well as legislative frameworks that serve as preventive measures.

This recent MoU is a step forward in mitigating money laundering and terrorism financing in these prominent economic powers in the MENA region.

It aims to strengthen the effectiveness of the region’s financial crime prevention frameworks for Saudi Arabia’s General Department of Financial Investigations and Kuwait’s Financial Intelligence Unit.

The MoU is not only a regulatory alignment but also a broad strategic cooperation between the two Gulf nations.

As part of broader bilateral efforts, Saudi Arabia and Kuwait announced the Wafra Joint Operation on a new oil discovery, the official Saudi Press Agency reported.  It reflects broader economic, strategic, and geopolitical ties between these two Gulf neighbours.

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• Kuwait Cracks Down on Money Laundering with Citizenship Revocations

This MoU aims to unify efforts against financial crimes, which are causing serious regulatory challenges and underscore the need for deeper reform and collaboration. Both Saudi Arabia and Kuwait have been lacking in their AML/CFT frameworks in different ways.

According to the FATF Mutual Evaluation Report of October 2024, Kuwait lacks comprehensive legal and supervisory structures for addressing illicit finance.

Although the Kingdom of Saudi Arabia (KSA) officially established its AML framework in 2003, it lacks in robust legal framework for CTF, FATF reported.

Reportedly, preventing money laundering remains a national priority for Saudi Arabia.. The recently signed MoU enhances regional cooperation in mitigating illicit financial flows, including those related to terrorist financing.