Kuwait added to FATF ‘grey list’ amid ongoing financial reform efforts
Countries included on this list remain subject to enhanced monitoring by the international community until required reforms are fully implemented.
The Financial Action Task Force (FATF) has announced the inclusion of Kuwait on its list of jurisdictions under increased monitoring — commonly referred to as the “grey list” — following the organization’s plenary meeting held in Mexico.
According to an official statement, Kuwait’s placement on the grey list reflects the country’s commitment to addressing identified strategic deficiencies in its systems for combating money laundering and terrorist financing within agreed international timelines.
Countries included on this list remain subject to enhanced monitoring by the international community until required reforms are fully implemented, reports Al-Rai daily.
The FATF noted that Kuwait made a high-level political commitment in February 2026 to work closely with both the FATF and the Middle East and North Africa Financial Action Task Force (MENAFATF) to strengthen the effectiveness of its national framework for combating money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction.
The statement highlighted that Kuwait has already achieved tangible progress on most recommendations contained in the mutual evaluation report adopted in June 2024.
Authorities have undertaken several corrective measures aimed at enhancing compliance and improving oversight across the financial sector.
Among the key steps taken by the Kuwaiti government are the adoption of a new national strategy to combat money laundering and terrorist financing, continued development of the technical framework governing compliance with targeted financial sanctions, and stronger efforts to deepen understanding of financial crime risks.
In addition, supervisory authorities have intensified risk-based monitoring and awareness programs targeting financial institutions as well as designated non-financial professions and businesses, reinforcing preventive measures across multiple sectors.
The FATF emphasized that Kuwait’s inclusion on the grey list does not constitute sanctions but rather signals closer international monitoring while reforms are implemented and assessed for effectiveness.
The move places renewed focus on accelerating regulatory improvements and strengthening financial transparency in line with global standards.
