98% of Kuwaiti businesses comply with beneficial ownership disclosure requirements

The Ministry of Commerce and Industry announced on Thursday that 98% of commercial entities in Kuwait have registered their beneficial ownership information by the official deadline, marking a significant milestone in the country’s efforts to enhance corporate transparency and combat money laundering.

According to Abdullah Al-Haraz, spokesperson for the Ministry, 148,108 out of 151,115 active businesses submitted their beneficial ownership data within the designated period. These disclosures are part of Kuwait’s regulatory compliance with international standards on anti-money laundering (AML) and counter-terrorism financing (CFT).

“This high rate of compliance reflects the growing awareness among companies of their legal responsibilities and the government’s emphasis on maintaining a transparent and trustworthy business environment,” said Al-Haraz in a statement to the Kuwait News Agency (KUNA).

The following is the breakdown by business type — Sole Proprietorships: 34,701 registered out of 35,066 – 98.9% compliance; Personal Companies: 111,838 registered out of 114,339 – 97.8% compliance and Joint-Stock Companies: 1,569 registered out of 1,710 – 91.7% compliance.

Despite the overall success, 3,007 commercial entities failed to comply with the regulation and are now subject to financial penalties estimated at KD 3 million (approximately USD 8.9 million).
Al-Haraz clarified that the fines begin at KD 1,000 and may escalate to KD 10,000 depending on the duration of non-compliance.

The Ministry had earlier announced a final 10-day grace period in early June for all companies and institutions to submit the required information identifying their ultimate beneficial owners — the individuals who exercise actual control over the company. The initiative is aligned with Kuwait’s commitment to meet Financial Action Task Force (FATF) guidelines and reinforce its AML/CFT framework.

“Adherence to these regulations ensures transparency, strengthens corporate governance, and promotes Kuwait’s position as a credible investment destination,” Al-Haraz added.

The Ministry emphasized that continued compliance will be strictly monitored and that legal action will be taken against violators to maintain the integrity of Kuwait’s financial and commercial systems.