KUWAIT CITY, Nov 24: The Ministry of Commerce and Industry announced that it implemented a comprehensive project during 2024/2025 to enhance transparency regarding beneficial owners. The project began with a cleanup of the commercial register, removing 73,700 inactive companies and updating the data of thousands of other companies in cooperation with several government agencies, reports Al-Seyassah daily.

In a press release, the ministry explained that the first phase of the project covered 73,712 companies, which were imposed a fine of KD 1,000 (approximately $3,255) each, totaling KD 2.845 million (approximately $5.6 million). The second phase included 1,836 companies, each fined KD 2,000 (approximately $6,511), totaling KD 3.672 million (approximately $9.2 million). Awareness campaigns, workshops, media content, and guidance manuals helped raise the registration rate from 42.8 percent at the end of 2024 to 98.62 percent in October 2025. The ministry verifies the registration of the beneficial owner by sending an authentication request through the electronic civil ID card application “Kuwait Mobile ID” to confirm the beneficiary’s identity. An official notification is sent after authentication via the government’s Sahel application to the registered beneficial owner to verify the accuracy of the registration.

In case of any error or discrepancy, the beneficiary must contact the ministry to update or correct the information. The purpose of the Beneficiary Register is to ensure transparency and help identify the true owner or controller of a company. It provides accurate data that refl ects actual business activity and uncovers hidden relationships. The register promotes effective compliance with international standards, including Recommendation 24 of the Financial Action Task Force (FATF), and contributes to improving Kuwait’s ranking, supporting the national assessment, and strengthening the country’s anti-money laundering and counterterrorism financing framework. Enhanced oversight provides regulatory bodies with immediate and accurate access to essential data on ownership and control. This facilitates the detection of commercial concealment, the analysis of suspicious patterns, and supports investigations, thereby strengthening the government’s ability to protect the business environment and mitigate economic risks.

The ministry went on to explain that it will hold a workshop titled “The Beneficial Owner” on Monday at 10:00am at the Ministries Complex. The workshop will be conducted in partnership with the Public Authority for Civil Information (PACI), the Public Authority for Manpower (PAM), the Ministry of Justice, and the Public Institution for Social Security (PIFSS). The workshop aims to raise awareness of emerging risks in the corporate sector and highlight the importance of maintaining a Beneficial Owner Registry and continuously updating registered information. The workshop will help financial institutions and designated non-financial businesses and professions understand the concept and data related to beneficial owners.

The ministry affirmed that Kuwait has made significant efforts in recent months to promote understanding of the beneficial owner concept and its associated identification and verification requirements in both the public and private sectors. It indicated that this service allows any government entity to search for and view company registration details, thereby enhancing trust in the commercial sector and supporting national efforts toward transparency and accountability. It is worth noting that the beneficial owner is the natural person who directly or indirectly benefits from the results of a transaction, contract, or assets, whether personally or through intermediaries. The beneficial owner must be disclosed in accordance with national laws and regulations to ensure transparency and combat financial crimes.