TERRORIST FINANCE: KUWAITI CHARITIES TO COLLECT

UNCLAS KUWAIT 004111 SIPDIS STATE FOR EB/ESC/TFS LLAMBERT, S/CT TKUSHNER, NEA/ARPI TWILLIAMS, NEA/RA LLEE, IO/PSC BFITZGERALD, TREASURY FOR TFFC DGLASER AND OFAC FOR RWERNER, NSC FOR JZARATE AND THINNEN, LONDON FOR LTSOU E.O. 12958: N/A TAGS: EFIN ETTC KTFN PTER CVIS KVPR KU SUBJECT: TERRORIST FINANCE: KUWAITI CHARITIES TO COLLECT RAMADAN DONATIONS THROUGH SALE OF GOVERNMENT COUPONS REF: KUWAIT 4056 ¶1. (U) Begin Summary. The director of the Charities Oversight Office, Ministry of Social Affairs and Labor, reports his ministry will implement a plan requiring Kuwaiti charities to collect zakat (alms) only through the sale of government-issued coupons. End Summary ¶2. (U) In a conversation with Econoff, Nasser Al-Ammer, the director of the Ministry of Social Affairs and Labor's Charitable Oversight Office confirmed recent Kuwaiti press reports that the ministry would implement a donation accountability system with local charities in anticipation of Ramadan. ¶3. (U) Regarding the modalities of the new program, Al-Ammer explained that local charities have received letters of instruction from the Ministry to collect zakat contributions only through the sale of government-issued coupons ranging from 500 Kuwaiti fils (1.70 USD) to 1000 Kuwaiti dinars (3400 USD). ¶4. (U) He noted that the coupons will be issued to charities based on specific serial numbers and authenticated by a government stamp. The ministry will retain a duplicate copy of each coupon for verification purposes and charities will be required to return unused coupons and report total sales and cash deposits resulting from charitable donations. COMMENT -------------- ¶5. (SBU) This initiative is in addition to similar accountability measures enacted by the Ministry of Social Affairs as part of its charity oversight responsibilities. Other recent actions include the issuance of a tender for an external auditing firm to monitor charities' financial activities (see reftel). Post will continue to monitor and report on these and other developments within the context of CTF/AML. LEBARON