Kuwait's State Audit Bureau Outlines Duties for Trustees of Frozen Funds

The State Audit Bureau (SAB) in Kuwait has taken a significant step to enhance transparency and accountability in the management of frozen assets. Head Essam Al-Roumi has issued a decision that meticulously outlines the duties and responsibilities of trustees appointed to oversee these funds, ensuring a more robust framework for their administration.

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The trustee, in performing their duties, must fulfill all obligations stipulated for a trustee according to the provisions of Chapter Two of Part Three of Book Two of Law No. 67/1980, provided that these obligations do not conflict with the provisions of this decision or any future decisions issued by the President of SAB.

This new regulation, published in the official gazette "Kuwait Al-youm," clarifies that frozen funds are assets subject to a prohibition on disposal by the Attorney General. The appointed trustees are now bound by specific rules, including the obligation to safeguard the entrusted funds with the care expected of a reasonable person. Crucially, they are prohibited from delegating their duties without explicit permission from the Attorney General and are restricted to administrative tasks unless prior written consent is obtained for actions beyond this scope.

Furthermore, the decision emphasizes the importance of ethical conduct and transparency. Trustees are forbidden from using seized funds for personal benefit and must avoid dealings with individuals whose assets have been frozen. A key requirement is the mandatory disclosure of any conflicts of interest, ensuring impartiality in their management. Regular, detailed reports on the financial position and transactions related to the seized funds must be submitted to the Attorney General every six months, or as otherwise decided.

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The trustee may not delegate their duties, in whole or in part, to another person except with the written permission of the Attorney General.

The trustee's role continues until a final court ruling is issued, the freeze is lifted, or the Attorney General relieves them of their duties. This comprehensive set of regulations aims to prevent misuse of frozen assets and ensure that their management is conducted with the utmost diligence and integrity, reflecting Kuwait's commitment to strengthening its financial oversight mechanisms.

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The trustee must disclose any conflicts of interest between themselves and the seized funds, as well as between themselves and persons whose funds have been seized.