Kuwait Busts Cyberfraud Network Laundering KD100 Million
Kuwait dismantles international network laundering over KD100 million via cyberfraud, hawala system, and shell companies.
Kuwait has dismantled a large international cyberfraud and money-laundering network that moved more than KD100 million since 2023, according to the Ministry of Interior.
The ministry said the high-profile operation was personally supervised by Sheikh Fahad Yousef Al Sabah, First Deputy Prime Minister and Minister of Interior, and targeted an organised gang involved in cyberfraud, bank forgery, and the smuggling of criminal proceeds through the informal hawala system.
Authorities arrested nine suspects connected to the network, including a Jordanian ringleader who fled Kuwait but was repatriated on the same day with the support of Jordanian authorities. The investigation began after a victim filed a complaint reporting electronic fraud that resulted in his bank account being completely drained.
Police investigations revealed that stolen funds were initially used to purchase mobile phones, which were then resold locally through accomplices. The proceeds were funnelled into bank accounts belonging to shell companies set up by one of the suspects before being transferred overseas.
The ministry said the main suspect admitted establishing the companies at the request of individuals outside Kuwait to facilitate money laundering. The scheme involved daily cash deposits through a money-collection company and the submission of fictitious invoices to banks to disguise illegal transactions.
Officials disclosed that around KD6 million was deposited into the suspect’s company accounts in the current month alone, while the total amount laundered since 2023 is estimated to exceed KD100 million. During the operation, security forces seized KD108,000 before it could be transferred, in addition to nine smartphones purchased with fraud proceeds.
All nine suspects have been referred to the Public Prosecution, including the individual who registered the shell companies in exchange for an annual fee. Authorities also coordinated with the Central Bank of Kuwait to take legal action against the money-collection company for violating licensing regulations by storing large amounts of cash.
The Ministry of Interior reaffirmed its commitment to combating cybercrime and financial fraud, stressing that coordinated regional and international efforts remain key to protecting Kuwait’s financial system.