CMA issues guidelines for handling clients stripped of citizenship under ‘Noble Deeds’ clause

The Capital Markets Authority (CMA) has issued a circular to all licensed entities outlining regulations for dealing with individuals whose Kuwaiti citizenship has been revoked under Article (5) – the “Noble Deeds Clause” – of Amiri Decree No. 15 of 1959 concerning the Nationality Law and its amendments.

This follows the Ministry of Interior’s statement issued on July 10, which clarified procedures for managing the residency, benefits, and restricted rights of those affected.

The CMA emphasized the importance of adhering to legal and regulatory standards in these specific cases, highlighting the following key directives:

Non-recognition as Kuwaitis — Individuals whose citizenship was withdrawn under the “Noble Deeds” clause are not to be treated as Kuwaiti citizens under CMA rules and are not entitled to any privileges or benefits granted to Kuwaiti nationals. This applies after the grace period granted by the Ministry of Interior for legal status adjustments.

Verification of Legal Status – Licensed entities must verify the legal status of any affected clients based on official documentation confirming valid residency. The grace period for compliance starts from July 20, 2025, for all previously affected individuals. For future cases, a four-month grace period begins from the date the revocation decree is issued.

Review of Existing Relationships — Any existing financial or investment relationship with individuals affected by citizenship revocation must be reassessed. Entities are required to update client records to ensure compliance with relevant legal frameworks before the end of the grace period.

Direct Coordination with Ministry of Interior — In cases of uncertainty about a client’s legal status or eligibility for benefits, authorized persons must contact the Ministry of Interior’s Article Eight Affairs Office — the sole authority for determining rights and procedures for this category.

The CMA underscored the necessity of strict compliance with all applicable laws and decrees related to citizenship withdrawal. Licensed institutions must revise their internal policies to avoid violations and ensure consistency with official government directives.