36 ALRAQABA . ISSUE 20 Fifth: The role of SAB in combating fraud, corruption, and money laundering: Article 16 of SAB Establishment Law No. 30/1964 stipulates the following: “The State Audit Bureau Shall detect incidents of embezzlement, negligence, and financial violations, examine their motives, identify the gaps in the work systems that caused, aided, or facilitated their occurrence, and suggest means of remedying them. If SAB suspects tampering with any of the public stores, warehouses, or treasuries, it may request the competent authority to immediately conduct a mandatory inventory. In this case, the competent inspector or auditor from SAB may witness the inventory process without taking part in it.” There is no doubt that SAB plays a pivotal role in auditing the annual general budget of the State, both from the legal and accounting perspectives. SAB prepares annual reports on the State’s general budget and includes its relevant observations along with the financial violations if proven. It has also signed a memorandum of understanding with the Kuwait Anti-Corruption Authority (Nazaha) on aspects of cooperation and mutual assistance. Besides, SAB has made numerous efforts to develop the capabilities of its employees by promoting their participation in external events and activities, concluding cooperation agreements with fellow SAIs, and organizing many training programs and workshops on fraud detection skills. The Information Center at SAB also issued a book (Combating Money Laundering Crime in the State of Kuwait) to be a legislative reference for its auditors. Conclusion As you may be aware, organized crime is evolving every day. Given that corruption is the fuel and main driver of all organized crimes associated with and arising from corrupt activities, I strongly believe in the need for tighter control over such activities by the different oversight bodies. It is also necessary to further develop legislation to combat corruption, fraud, and money laundering, as protecting society would eventually lead to the protection of the state and guarantee its survival. References: • ASOSAI Guidelines for Dealing with Fraud and Corruption. • INTOSAI Guidance on Auditing Institutional Frameworks for Fighting Corruption 2017. • ISSAI 5700 “Guideline for the Audit of Corruption Prevention”. • Law No. 2 of 2016 regarding the Establishment of the Kuwait Anti-Corruption Authority (Nazaha) and the Provisions on Financial Disclosure. • Law No. 106 of 2013 on Money Laundering and Financing Terrorism. • Council of Ministers Resolution No. 1532 of 2013 on the Financial Intelligence Unit. • Law 30 of 1964 on the Establishment of the State Audit Bureau. • Memorandum of Understanding on aspects of joint cooperation and mutual assistance between the State Audit Bureau and Kuwait Anti-Corruption Authority. • Letter of the National Committee for Combating Money Laundering and Terrorist Financing dated 28/3/2021 addressed to the Undersecretary of the State Audit Bureau. Perspective Audit
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