Gulf Cooperation Council (GCC) states are moving toward the adoption of a comprehensive regional strategy to combat money laundering, a crime officials warn poses significant threats to economic stability and global security.
Jasem Mohamed Al-Budaiwi, Secretary-General of the GCC, announced that member states have already enacted a series of laws and regulations targeting money laundering. However, he emphasized that a unified Gulf strategy would establish “a new framework of joint cooperation” and strengthen coordination with international partners.
Speaking at the opening of the “Workshop on Preparing the Gulf Strategy for Combating Money Laundering,” hosted by Kuwait’s Ministry of Interior in partnership with the United Nations Office on Drugs and Crime (UNODC), Al-Budaiwi described money laundering as “one of today’s most complex global challenges.” He noted that its consequences extend beyond economic disruption, fueling terrorism, organized crime, and threatening international peace and security.
Citing global estimates, he said money laundering accounts for between 2 and 5 percent of the world’s GDP, which is equivalent to $800 billion to $2 trillion annually. Given their geographic position, economic weight, and international connectivity, GCC countries are particularly exposed to such risks.
“Any loophole in financial or regulatory systems could be exploited to channel illicit funds or finance activities that undermine regional and global security,” Al-Budaiwi warned.
The Secretary-General stressed that GCC legislation already aligns with international standards, but argued for a collective regional approach based on “the principle of shared security, translated into effective and deterrent action plans.”
He pointed to the bloc’s 2024 Regional Security Vision, which highlighted the urgent need to strengthen frameworks against terrorist financing and money laundering.
According to Al-Budaiwi, the proposed Gulf strategy will rest on five key pillars. The first involves enhancing security legislation and policies, ensuring that interior ministries can close gaps exploited by criminals while coordinating closely with financial regulators. The second focuses on joint operations and intelligence-sharing, including the creation of GCC task forces.
The third pillar emphasizes technology and advanced analytics, with investments in artificial intelligence and secure digital platforms for real-time data exchange. The fourth centers on asset tracing and confiscation, targeting illicit funds linked to drug trafficking, corruption, terrorism, and human trafficking, alongside strengthened international cooperation on asset recovery.
Finally, the fifth pillar highlights training and awareness, including specialized programs for interior ministry officers, unified operational guidelines, and awareness campaigns targeting vulnerable sectors.
Al-Budaiwi concluded that the new strategy would bolster Gulf states’ collective ability to safeguard their economies and security, while reinforcing the region’s role as a trusted partner in the global fight against financial crime.
