KUWAIT CITY, Sept 20: Kuwait has intensified its national efforts to combat money laundering and terrorist financing by adopting significant legislative and regulatory reforms, further cementing its position as a credible regional and international partner in financial crime prevention.

In a major development, the government recently issued Decree-Law No. 76 of 2025, amending key provisions of Law No. 106 of 2013. This legislative upgrade grants the Council of Ministers broad authority to enact binding decisions aligned with international obligations, including freezing assets, delisting individuals and entities, and prohibiting financial transactions with designated parties.

To ensure timely enforcement, the decree stipulates that such decisions take effect immediately upon issuance, aiming to prevent delays that could diminish their impact. Violators face severe penalties ranging between 10,000 Kuwaiti dinars (approx. USD 32,800) and 500,000 dinars (approx. USD 1.64 million) per offense.

The updated law carefully balances Kuwait’s international commitments with constitutional protections, granting affected individuals the right to lodge complaints, request reviews, and seek permission to cover necessary expenses.

These reforms are part of a broader strategy coordinated by the National Committee for Combating Money Laundering and Terrorism Financing, which has intensified inter-agency collaboration to prepare for Kuwait’s upcoming mutual evaluation under the Financial Action Task Force (FATF) standards.

The committee includes representatives from the Financial Intelligence Unit (FIU), Central Bank of Kuwait (CBK), Ministry of Commerce and Industry, Capital Markets Authority (CMA), Public Prosecution, and the Ministries of Justice, Finance, Interior, Foreign Affairs, and Social Affairs, as well as the General Administration of Customs, Kuwait Anti-Corruption Authority (Nazaha), and the Insurance Regulatory Unit.

In a key step toward enhancing institutional cooperation, four agencies signed two memoranda of understanding (MoUs) in July 2025. The first, between the General Administration of Customs and the Ministry of Interior, focuses on boosting data-sharing and regulatory coordination in line with FATF guidelines.

The second MoU, signed by the CMA and FIU, outlines mechanisms for the secure and confidential exchange of information, regular coordination meetings, mutual participation in training programs, and the implementation of joint control measures. These agreements are designed to strengthen Kuwait’s institutional response to money laundering threats and reinforce adherence to international standards.

As part of sector-specific oversight, the Ministry of Commerce and Industry released the 2025 Anti-Money Laundering and Counter-Terrorism Financing Guide for the gold, precious metals, and gemstones traders sector. The guide aims to support compliance by outlining risk indicators, internal control procedures, and payment red flags—such as large or unconventional cash transactions and connections to high-risk sectors, including real estate, tourism, or construction.

Meanwhile, the Central Bank of Kuwait has adopted an enhanced enforcement methodology under Article 15 of Law No. 106 of 2013, which includes the public disclosure of penalties issued against regulated entities. The CBK also instructed banks to report any suspected transactions to the FIU within two days, following specific technical and strategic analysis procedures.

The FIU plays a critical role in reviewing suspicious transaction reports submitted by financial institutions and designated non-financial professions. It also conducts strategic assessments of key vulnerabilities related to money laundering and terrorist financing.

In addition to domestic efforts, Kuwait recently hosted a Gulf workshop on a unified strategy to combat money laundering, which concluded on September 11. The event underscored Kuwait’s commitment to regional coordination and collective strategic alignment with global partners.

The FATF’s October 2024 report acknowledged Kuwait’s robust AML/CFT infrastructure, citing political and institutional stability, legal professionalism, and judicial independence. The report confirmed that Kuwait has improved its capacity to prosecute money laundering crimes effectively, with penalties deemed proportionate and dissuasive.

The Council of Ministers is closely monitoring the progress of all relevant authorities in fulfilling FATF requirements. It continues to review updates from the National Committee and ministries involved, ensuring that Kuwait’s legal and institutional systems are fully prepared for international assessments.

These concerted efforts reflect Kuwait’s strategic vision to strengthen its financial system, uphold global legal obligations, and safeguard its reputation as a responsible member of the international community.