Banning “cash” car sales and restricting the use of electronic payment devices for payment

Official Kuwaiti sources revealed that open discussions are ongoing between Trade Minister Omar Omar and Central Bank of Kuwait Governor Basil Haroon to regulate cash transactions in car sales activities in order to regulate cash transactions in car sales activities, according to Kuwaiti newspaper Al-Rai. The source said that the Minister of Commerce sent a letter to the governor to regulate cash transactions in car sales activities, and Al-Omar revealed that this trend is obligatory. Car sales agencies and companies limit their payment methods to electronic payment devices “knet” for amounts exceeding 1,500 dinars.

The Minister added that the regulatory initiative in this direction is carried out within the framework of efforts to take possible measures to reduce the phenomenon of “money laundering”, which is one of the challenges facing and threatening global economic growth and sustainable development of countries. One of the economic crimes, which is considered more serious due to its negative impact, especially on the economic cycle of any country.

Omar said these practices harm the business, economic, financial and banking communities due to ignorance of these illegal activities, and stressed the importance of taking preventive measures within the framework of the Anti-Money Laundering and Counter-Terrorism Financing Law.

Omar suggested that Haroon, based on the recommendations of the Ministry of Commerce, coordinate with the Central Bank to issue an organized ministerial decision on this issue in order to take the necessary actions in this regard, indicating that the starting point of this coordination is to engage in constructive cooperation with all state institutions and agencies to achieve the highest interests of Kuwait in combating sophisticated money laundering activities.

Furthermore, sources confirmed that banning cash transactions is an important step in combating suspected money laundering as it closes loopholes that could be used to conduct money laundering activities and inflate accounts.

She noted that limiting cash sales enables government agencies to track the flow of funds and confirm the source, bank and final destination of funds by limiting payments to those permitted by the Central Bank of Kuwait, in addition to working with financial institutions’ investigation units in accordance with regulated legal standards.