Article 1 of Anti-Money Laundering Law

In applying the provisions of this Law, the following words and expressions shall have the meaning indicated opposite each: Funds: Any type of assets and property, whether money, securities and commercial papers, or tangible and intangible immovable and movable valuables and all rights relating thereto—regardless of the means of obtaining them—as well as legal documents and instruments—whatever their form—including electronic or digital form, banking facilities, cheques, payment orders, shares, bonds, bills of exchange and letters of guarantee, whether situated inside or outside the State of Kuwait. Person: A natural or legal person. Transaction: Every purchase, sale, loan, mortgage, gift, financing, transfer of funds, delivery, deposit, withdrawal, transfer by remittance or disposal thereof in any manner, in any currency, in cash or by cheques, payment orders, shares, bonds or any other financial instruments, or use of safe-deposit boxes and other forms of safekeeping, or any other disposition of funds specified by the Executive Regulations. = Financial institution: Any person conducting as a business one or more of the following activities and operations for or on behalf of a customer, as follows: a- Accepting deposits and other repayable funds from the public, including private banking. b- Lending. c- Financial leasing. d- Money or value transfer services. e- Issuing and managing means of payment such as credit cards, debit cards, travellers' cheques, financial leasing, payment orders, bank transfers and electronic money. f- Financial guarantees and commitments. Law Index 434 Home Page Anti-Money Laundering Law Law No. 106 of 2013 concerning Combating Money Laundering g- Trading in: 1- Money market instruments, including cheques, bills of exchange and certificates of deposit. 2- Foreign exchange. 3- Exchange-rate, interest-rate and financial-index instruments. - Transferable securities and financial derivatives. e- Commodity futures contracts. h- Foreign exchange transactions. i- Participation in securities issues and provision of financial services related to those issues. j- Individual and collective portfolio management. k- Safekeeping and administration of cash or liquid securities on behalf of other persons. l- Concluding life insurance contracts and other types of investment-related insurance as an insurer or insurance contract intermediary. m- Investing, managing or employing funds on behalf of other persons. n- Any other activities or transactions specified by the Executive Regulations of this Law. Designated non-financial businesses and professions, including the following: a- Real estate brokers. b Sole proprietorships and companies engaged in trading in gold, precious stones and precious metals when entering into cash transactions specified by the Executive Regulations of this Law. c Lawyers, independent legal professionals and independent accountants, when preparing, executing or conducting transactions for clients in relation to any of the following activities: 1- Buying or selling real estate. - Managing the client's funds, including securities, bank accounts or other property. - Establishing, operating or managing legal persons or legal arrangements and organizing related subscriptions. - 4 Selling or buying companies. d- Providers of services to companies and trust funds when preparing or conducting transactions for a client relating to the following activities: 1- Acting as an agent for the formation of a legal person. 2- Acting, or arranging for another person to act, as a director, secretary or partner in a company, or in a similar capacity in relation to other legal persons. - Providing a registered office, premises, business offices, mailing address or administrative address for a legal person or legal arrangement. 4- Acting, or arranging for another person to act, as a trustee of a trust fund or performing Law Index 435 Home Page Anti-Money Laundering Law Law No. 106 of 2013 concerning Combating Money Laundering a similar function for a legal arrangement. e- Acting, or arranging for another person to act, as a nominee shareholder. e- Any other activity or profession stipulated by the Executive Regulations of this Law. Business relationship: Any business, professional or commercial relationship connected with the professional activities of a financial institution or designated non-financial businesses and professions and expected to involve an element of continuity. Account: Any facility or arrangement under which a financial institution accepts deposits, cash or negotiable instruments, permits withdrawals or transfers, pays the value of cheques or payment orders drawn on a financial institution or another person, collects cheques, payment orders, bank transfers, travellers' cheques or electronic money on behalf of a person, or provides facilities or arrangements for