Kuwait tightens grip on money laundering with tough sanctions

• The Capital Markets Authority’s new grants the authority broad enforcement powers under Article 15 of the AML Law to impose penalties—including financial ones—on institutions and, if necessary, individuals for violations.

As part of its efforts to implement recommendations from the Financial Action Task Force (FATF) mutual evaluation of Kuwait, the Capital Markets Authority (CMA) has adopted a new enforcement mechanism. This mechanism outlines the measures and penalties to be imposed on entities under its supervision that violate rules related to anti-money laundering and counter-terrorist financing.

These include the provisions of Book Sixteen of the Executive Regulations of Law No. (7) of 2010, which established the CMA and regulates securities activities, as well as Law No. (106) of 2013 on combating money laundering and terrorist financing and its Executive Regulations. The CMA emphasized its commitment to applying these policies in a transparent, fair, and consistent manner, Arabic daily Al Jarida reported.

The mechanism includes a wide range of enforcement powers outlined in Article (15) of the Anti-Money Laundering and Terrorism Financing Law. These powers allow the authority to impose various measures and penalties—including financial ones—on all institutions under its supervision in the event of violations. This may also extend to certain individuals associated with those entities.

The authority affirms that penalties will be applied consistently. Appropriate measures will be selected from the range available under Article (15), taking into account several factors, including—but not limited to—the nature and severity of the violation, its impact, frequency, and any previous corrective actions taken against the violating parties.

In conclusion, the Capital Markets Authority continues to fulfill its supervisory role in combating money laundering and terrorist financing. The aim is to address weaknesses in the operations, procedures, systems, and controls of entities under its oversight. These efforts will reinforce the role of Kuwait’s regulatory bodies and support full compliance with the recommendations outlined in the Financial Action Task Force’s Mutual Evaluation Report on the State of Kuwait.