Govt amends certain provisions of law No. 106/2013 to fight money laundering, and terrorism financing
Violators face fine of no less than 10,000 dinars and no more than 500,000 dinars per violation
The Council of Ministers has approved Decree-Law No. 2025 amending certain provisions of Law No. 106 of 2013 concerning the fight against money laundering and terrorist financing.
A copy of the law, obtained by Al Jarida, reveals that Article 1 of the amendment replaces the existing text of Article 25 with a provision empowering the Council of Ministers — upon the recommendation of the Minister of Foreign Affairs — to issue the necessary decisions to implement United Nations Security Council resolutions issued under Chapter VII of the UN Charter.
These decisions relate specifically to combating terrorism, its financing, and the financing of the proliferation of weapons of mass destruction.
They may include decisions on listing or delisting individuals and entities, freezing funds and assets, and prohibiting transactions with natural or legal persons, provided that the rights of third parties acting in good faith are preserved. The decisions are to take effect from the date of their issuance.
The law further allows the Council of Ministers to delegate a minister to exercise the powers outlined in the article.
Unless otherwise stated in the delegation decision, the delegated minister may assign the implementation of these responsibilities to a special committee in accordance with procedures he deems appropriate.
The executive regulations will specify the rules for publishing and providing access to these decisions, the procedures for appealing them, the guidelines for managing frozen funds and assets, and the authorization for disbursing specific amounts to cover essential living costs and other financial obligations.
These provisions aim to ensure that the use of such funds remains within the limits of their approved purposes and to establish all other necessary controls and procedures to enforce the article’s provisions.
Article 2 of the decree introduces a new Article 33 bis to Law No. 106 of 2013. It stipulates that any individual who violates a decision issued under Article 25 shall be subject to a fine of no less than 10,000 Kuwaiti dinars and no more than 500,000 dinars per violation.
This penalty does not affect any additional sanctions or measures that may be imposed by regulatory authorities on financial institutions or non-financial businesses and professions, as defined under Article 15 of the same law.
According to Article 3, all existing regulations and decisions issued before the enactment of this Decree-Law regarding the implementation of Security Council resolutions related to counterterrorism and non-proliferation will remain in force, as long as they do not conflict with the provisions of the new decree, unless amended or repealed.
Article 4 mandates the Prime Minister and all relevant ministers to implement the provisions of the decree, which becomes effective upon its publication in the Official Gazette.
The explanatory memorandum accompanying the decree-law emphasizes Kuwait’s commitment to upholding its international obligations under Security Council resolutions issued pursuant to Chapter VII of the UN Charter.
It affirms that the legal amendment provides a solid legislative foundation enabling the Council of Ministers to adopt the required decisions while adhering to constitutional boundaries and safeguarding the rights of individuals and third parties acting in good faith.
