Kuwait bans cash payments in insurance sector to boost transparency
Kuwait has taken a significant step toward strengthening financial transparency and oversight in its insurance sector, with the Insurance Regulatory Unit issuing Resolution No. (32) of 2026 banning all cash transactions for entities under its supervision.
The decision requires insurance companies and licensed providers to conduct all payments and collections exclusively through banking channels or electronic payment systems approved by the Central Bank of Kuwait, aligning with regulatory frameworks governing financial operations.
An exception has been made for individual insurance documents issued at border crossings, particularly those related to mandatory vehicle insurance, acknowledging the unique nature of such transactions, reports Al-Rai daily.
The regulation underscores that any violations will trigger accountability measures in accordance with Law No. 125 of 2019 and its executive bylaws, without prejudice to penalties outlined in other applicable legislation.
The move also aligns with Kuwait’s broader legal framework to combat financial crimes, including Law No. 106 of 2013 on anti-money laundering and counter-terrorism financing.
Effective from April 22, 2026, the decision will be published in the Official Gazette and implemented by all relevant authorities. It reflects Kuwait’s ongoing push toward digital transformation, reducing reliance on cash transactions while enhancing compliance, traceability, and financial governance across the insurance industry.
