Kuwait tightens beneficial ownership rules with heavy new fines up to 10,000 dinars
The Ministry of Commerce and Industry has issued Ministerial Resolution No. (37) of 2026, introducing key amendments to existing rules governing the identification of beneficial owners, in a move aimed at strengthening transparency and combating financial concealment practices.
According to Al-Rai daily, the updated regulation modifies provisions of Ministerial Resolution No. (4) of 2023, which outlines procedures for declaring the true beneficial owner behind commercial entities operating in Kuwait.
Under the new Article 1, the ministry has made it mandatory that no commercial license shall be issued or renewed unless all requirements related to beneficial ownership disclosure are fully met.
The resolution introduces strict financial penalties for non-compliance. Administrative fines ranging from 1,000 dinars to 10,000 will be imposed for each violation in cases where:
- Beneficial ownership is not disclosed
- Incorrect or misleading information is submitted
The same penalties apply to any individual registered as a beneficial owner in violation of factual accuracy, particularly if the person knowingly provides false information or participates in submitting incorrect ownership data.
Officials say the tightened measures are designed to enhance corporate transparency, improve regulatory oversight, and ensure the integrity of business registration processes in Kuwait.
The amendment reflects a broader effort by Kuwaiti authorities to align with international standards on anti-money laundering and corporate governance, reinforcing accountability across the private sector.
