Kuwait tightens money transfer rules: bank statement now required for transfers above 3,000 dinars
. . . strengthens anti-money laundering measures with new transfer verification rules
Exchange companies across Kuwait have introduced stricter verification procedures for customers making money transfers of more than 3,000 dinars, as part of enhanced efforts to combat money laundering and terrorist financing under the supervision of the Central Bank of Kuwait (CBK).
Under the new measures, customers sending more than 3,000 dinars through an exchange company must provide a bank statement covering at least the previous two months. The statement must show the movement of funds in the account, even if transactions are as small as one dinar.
Previously, exchange companies generally requested bank statements only for customers making very large transfers, typically 10,000 dinars or more, or where the transaction significantly exceeded the customer’s declared financial profile under Know Your Customer (KYC) requirements.
Stronger Checks on Source of Funds
The new requirement is designed to help exchange companies verify that the money being transferred matches the customer’s legitimate income and financial activity.
Authorities want to ensure that large transfers are supported by clear and lawful sources of funds, reducing the risk of money laundering or other illegal financial activities.
The move forms part of Kuwait’s broader efforts to strengthen its anti-money laundering (AML) and counter-terrorism financing (CTF) framework in line with international standards set by the Financial Action Task Force (FATF).
Cash Transfers Also Restricted
Exchange companies are also enforcing another important rule that limits cash payments for remittances to 1,000 per customer per day. Customers wishing to transfer larger amounts are expected to use funds that can be traced through the banking system.
The Central Bank continues to conduct regular field inspections of exchange companies to ensure they fully comply with AML regulations and promptly address any shortcomings in their monitoring systems.
Closer Regulatory Oversight
The CBK has intensified inspections of exchange companies’ records and internal procedures to confirm compliance with Law No. 106 on Combating Money Laundering and Terrorism Financing and related regulations.
Regulators are also requesting additional documentation from exchange companies to demonstrate that they are properly verifying customers’ sources of funds and applying risk-based monitoring procedures.
Kuwait Improves FATF Rating
The tighter controls come as Kuwait continues to improve its standing with the Financial Action Task Force.
Recently, the country upgraded its compliance rating in seven key FATF recommendations, with several areas being reclassified as “largely compliant” after legislative and regulatory reforms.
The improvements cover areas including:
- Combating terrorism financing.
- Preventing the financing of weapons of mass destruction.
- Transparency of companies and beneficial ownership.
- Supervision of financial institutions and non-profit organisations.
- International legal cooperation.
- Implementation of targeted financial sanctions.
One significant improvement was Kuwait’s rating under FATF Recommendation 6, which deals with financial sanctions related to terrorism and terrorist financing.
The upgrade followed the issuance of Ministerial Resolution No. 8 of 2025, which strengthened procedures for freezing assets and implementing United Nations Security Council sanctions within specified timeframes.
The latest measures reflect Kuwait’s ongoing efforts to strengthen the integrity of its financial system, enhance transparency, and maintain compliance with global anti-money laundering and counter-terrorism financing standards.
