KD 10,000–500,000 fines enforced under Kuwait’s updated AML law

• The legislative and oversight measures reflect Kuwait’s determination to become a regional hub in anti-money laundering efforts, bolstering its global standing and supporting a national strategy to address financial crimes.

• Kuwait possesses all essential structural elements for an effective AML/CFT regime, including political and institutional stability, rule of law, accountability, and an independent judiciary.

The State of Kuwait is accelerating efforts to strengthen its legal and regulatory framework to combat money laundering, aiming to enhance the efficiency of government agencies and elevate the national response in line with international standards, Al Jarida newspaper reported.

These legislative and oversight measures reflect Kuwait’s determination to become a regional hub in anti-money laundering efforts, bolstering its international standing and supporting a comprehensive national strategy to address financial crimes.

According to a KUNA report, Kuwait’s legislative system recently saw a significant development with the issuance of Decree-Law No. 76 of 2025, which amends provisions of Law No. 106 of 2013 on Combating Money Laundering and Terrorism Financing. The decree establishes a robust legal framework enabling the Council of Ministers to issue the necessary decisions to implement Kuwait’s international obligations in this area.

The law includes provisions to delist, freeze funds and other assets, and prohibit dealings with specified natural or legal persons. To enhance the effectiveness of Cabinet decisions, it stipulates that such measures take effect immediately upon issuance, avoiding any delay that could undermine their purpose or limit their impact. Violations carry criminal penalties, with fines ranging from KD 10,000 to KD 500,000 per offense.

The legislation provides a comprehensive framework for implementing Security Council resolutions while balancing international obligations with constitutional safeguards. It guarantees individuals the right to file complaints, review relevant information, and request permission to cover necessary expenses.

This step reflects the efforts of the National Committee for Combating Money Laundering and the Financing of Terrorism, tasked by the Council of Ministers to strengthen cooperation among relevant government agencies and ensure compliance with international standards, thereby protecting Kuwait’s reputation and global standing.

The committee includes the Financial Investigation Unit, Central Bank of Kuwait, Ministry of Commerce and Industry, Capital Markets Authority, Public Prosecution, Ministries of Justice, Finance, Interior, Foreign Affairs, and Social Affairs, General Administration of Customs, Public Authority for Combating Corruption (Nazaha), and the Insurance Regulatory Unit.

In July, four government agencies signed two memoranda of understanding to enhance coordination in combating money laundering. The MoU between General Administration of Customs and Ministry of Interior focuses on joint cooperation and information exchange in line with Financial Action Task Force (FATF) standards.

The Capital Markets Authority and Financial Intelligence Unit MoU establishes frameworks for cooperation, detailing the scope, exchange mechanism, and strict confidentiality standards for information sharing between the entities. These agreements aim to strengthen regulatory measures, improve data exchange efficiency, and support Kuwait’s national system for combating financial crimes.

The memorandum outlined key aspects of cooperation, including holding periodic meetings to strengthen joint coordination, activate preventive and deterrent controls, exchange information and expertise, prepare training and qualification programs for personnel, and facilitate mutual attendance at training courses on combating money laundering and terrorist financing.

As part of its on-site monitoring, the Ministry of Commerce and Industry prepared the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Guide for the Gold, Precious Metals, and Gemstones Traders Sector 2025.

The guide aims to help professionals in this sector understand and fulfill their obligations under AML/CFT laws by providing guidance on identifying and assessing money laundering and terrorist financing risks and implementing the necessary internal policies, procedures, and controls. It highlights payment and transaction risks, such as unconventional or large cash usage, third-party advance payment recovery, and transactions through unrelated or high-risk sectors like real estate, automotive, construction, or tourism, alongside key business risk assessment points.

The Central Bank of Kuwait adopted an updated penalty methodology under Article 15 of Law No. 106 of 2013, including the publication of penalties imposed on supervised entities. It issued a circular directing banks to follow Financial Intelligence Unit guidelines and report suspicious transactions within two days. The Unit conducts technical and strategic analyses of reports from financial institutions and relevant non-financial businesses.

Kuwait also hosted a workshop to prepare a unified Gulf strategy against money laundering, reflecting its commitment to regional and international coordination. According to the October FATF report, Kuwait possesses all essential structural elements for an effective AML/CFT regime, including political and institutional stability, rule of law, accountability, and an independent judiciary.

The report confirmed Kuwait’s enhanced capacity to prosecute, impose proportionate penalties, and deter money laundering effectively. The Council of Ministers continues to monitor the implementation of FATF requirements, reviewing progress by the National Committee for Combating Money Laundering, relevant ministries, and authorities.

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