ALBAWABA – Official sources announced that Kuwait Minister of Commerce and Industry, Omar Saud Al-Omar, and Basel Al-Haroon, Governor of the Central Bank of Kuwait (CBK), had diverse discussions to regulate car sales transactions in the country. The final decision will include banning cash purchases and transactions in this sector, according to Al Rai Kuwaiti newspaper.
Recent discussions in Kuwait to ban cash transactions for car purchases
Omar Saud Al-Omar, Kuwait's Minister of Commerce and Industry, had many discussions with Basel Al-Haroon, Governor of the Central Bank of Kuwait (CBK), to regulate cash purchases for vehicles. Al-Omar said car sales agencies and companies will be required to use “KNET Payment Gateway,” a Kuwaiti national company providing electronic banking services to all the banks in Kuwait, for amounts exceeding 1,500 KWD.
Cash purchases assist in money laundering
The Minister explained the reason behind this new move is to reduce and regulate money laundering activities in the country, as it threatens Kuwait’s economy and sustainable development. Al-Omar added that these practices harm the commercial, economic, financial, and banking sectors in the country. Thus, security measures should be applied under the Anti-Money Laundering and Terrorism Financing Law.
Al-Omar said car sales agencies and companies will be required to use “KNET Payment Gateway,” a Kuwaiti national company providing electronic banking services to all the banks in Kuwait, for amounts exceeding 1,500 KWD. (Shutterstock)
It is worth noting that implementing new laws for car sales transactions will help government entities and agencies track funds and verify their original sources. According to the Kuwait Minister of Commerce and Industry, the Central Bank of Kuwait (CBK), Kuwait Financial Investigations Unit (KwFIU), and other relevant units and organizations should cooperate with the ministry to enforce these legal standards.
