The shortcomings of anti-corruption measures: Kuwait’s financial disclosure system
| DOI | https://doi.org/10.1108/JFC-01-2022-0031 |
| Published date | 18 March 2022 |
| Date | 18 March 2022 |
| Pages | 665-676 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial crime |
| Author | Eiman Khaled Alqattan |
The shortcomings of anti-
corruption measures: Kuwait’s
financial disclosure system
Eiman Khaled Alqattan
The School of Law, Kuwait University, Kuwait City, Kuwait
Abstract
Purpose –The paper aims to critically evaluate the legal provisions related to Kuwait’sfinancial disclosure system
and whether its anti-corruption measures are sufficient. The hypothesis supposes that there is a possible correlation
between Kuwait’s laws andre gulations andthe disclosure system’s failure to detect illicit enrichment crimes.
Design/methodology/approach –This doctrinal and reform-oriented study examined Kuwait’s
procedures for assessing public officials’financial statements and the laws regulating illicit enrichment
crimes.The content analysis explored criminal courts’judgementsof these illicit enrichment cases.
Findings –Although the disclosure system’s primary role is to detect illicit wealth, thefindings suggest
that it fails to achieve its primary objective. The findings also highlight the system’s major challenges to
suggestpossible reforms.
Research limitations/implications –A comprehensive evaluation of the legal provisions within
Kuwait’s disclosure system is beyond the scope. To improve the system’s effectiveness, adopting an
accessible online platform on which filers can submit their disclosure statements and follow up with a
verification process is recommended. Also, requiring interested individuals to physically visit a location
where the disclosure information is held can balance protecting officials’privacy/security and offering
individualsthe ability to verify the declared information.
Originality/value –To the best of the author’s knowledge, this study is the first to research the possible
correlation between the issues in the Kuwaiti disclosure system’s legal provisions and its failure to detect
illicit enrichment during major criminal scandals. It is also the first to analyse these legal provisions and
presenta critical evaluation of their shortcomings.
Keywords Kuwait, Illicit enrichment, Financial disclosure system
Paper type Research paper
Introduction
Income and assets disclosure systems are one of the many powerful tools to prevent corruption in
general, and prevent, detect and prosecute public officials’illicit enrichment in particular (Kotlyar
and Pop, 2019;Martini, 2013;StAR, 2013). Specifically, financial disclosure is a mechanism that
requires public officials to periodically submit information related to their income, assets, liabilities
and interests. In other words, a financial disclosure system “refers to the entire process of
disclosing assets and interests, from the blank form to submission, verification, and sanctioning”
(Rossi et al.,2017,p.2).Whenastate’s disclosure system fails to detect the illicit enrichment crimes
of public officials, this indicates that the system itself has some issues that must bea ddressed.
In Kuwait, Law No. 2 was enacted in 2016 and covers the establishment of the Kuwait
Anti-Corruption Authority (Nazaha) and provisions on the Disclosure of Assets and
Liabilities (2/2016) [1]. This law was the first to criminalise illicit enrichment and regulate
the disclosure system’s provisions. Additionally, the statistics on the detection of illicit
enrichment incidents during the pretrial process are limited. If the data even exist, they are
very hard to access.
Kuwait’s
financial
disclosure
system
665
Journalof Financial Crime
Vol.30 No. 3, 2023
pp. 665-676
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-01-2022-0031
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