Cabinet approves draft decree-law to amend anti-money laundering, counter-terrorism financing law

To reinforce Kuwait’s compliance with international standards, the Council of Ministers has approved a draft decree-law during its Tuesday session amending key provisions of Law No. 106 of 2013 on anti-money laundering and counter-terrorism financing.

According to the explanatory memorandum, the proposed amendments establish a robust legal foundation empowering the Cabinet — as the state’s highest executive authority — to issue the necessary decisions for implementing United Nations Security Council (UNSC) resolutions, particularly those adopted under Chapter VII of the UN Charter.

These measures are designed to be implemented without breaching constitutional limits, infringing on individual rights, or harming the interests of bona fide third parties, reports Al-Rai daily.

The revised Article 25 authorizes the Council of Ministers, upon the recommendation of the Minister of Foreign Affairs, to issue decisions to implement relevant UNSC resolutions, especially those concerning combating terrorism financing; preventing the financing of the proliferation of weapons of mass destruction; freezing funds and other assets; listing and delisting individuals and entities and prohibiting dealings with certain natural or legal persons.

These decisions will be enforceable from the date of issuance. Executive regulations will outline the mechanisms for publishing these decisions, handling appeals, managing frozen assets, and allowing access to limited amounts of funds for essential living and financial needs — ensuring such funds are used solely for legitimate purposes.

Additionally, the Cabinet may delegate these powers to a minister. That minister, in turn, may assign responsibilities to a special committee, as long as it aligns with the terms of the delegation.

The second article of the draft law introduces a new provision (Article 33 bis), establishing penalties for violating decisions issued under Article 25. Offenders may face fines ranging from KD 10,000 to KD 500,000 for each violation.

This penalty does not affect the authority of regulatory bodies to impose additional administrative sanctions on financial institutions or designated non-financial businesses and professions, as defined in Article 15 of the original law.

Article 3 ensures that current regulations and decisions implementing UNSC resolutions — including those issued prior to this decree-law — will remain in effect as long as they do not conflict with the amended provisions. They may only be amended or repealed through new decisions.

This continuity is especially relevant to the Special Committee established under Ministerial Resolution No. 8 of 2025, which is responsible for coordinating the implementation of UNSC measures.

Under Article 4, the Prime Minister and relevant ministers are tasked with implementing this decree-law, which will come into force upon publication in the Official Gazette.

The explanatory memorandum highlights that this legislative move reflects Kuwait’s commitment to international obligations in combating terrorism, its financing, and the proliferation of weapons of mass destruction.

It also emphasizes the need for clear procedures that enable swift and lawful execution of international resolutions, while preserving constitutional protections and allowing individuals the right to appeal, review evidence, and request exemptions for basic financial needs.

Overall, the decree-law aims to balance Kuwait’s global responsibilities with domestic legal safeguards, enhancing the country’s regulatory framework for combating financial crimes and upholding international security mandates.