In response to directives from the Financial Action Task Force (FATF), the Kuwaiti Ministry of Commerce and Industry is under pressure to immediately implement financial penalties on companies and commercial license holders who have failed to disclose their beneficial ownership information.
This move aims to align Kuwait with international standards on combating money laundering and terrorist financing, preserving the country’s global classification in the financial integrity sector.
Sources revealed to Al-Rai that FATF officials, during recent review meetings with the ministry, emphasized the urgent need to activate penalties under Ministerial Resolution No. 16 of 2025, which imposes fines ranging from 1,000 dinars to 10,000 dinars. Additionally, Law No. 106 allows penalties of up to KD 500,000 for severe violations.
Officials estimate that around 15,000 commercial licenses are at risk of facing penalties if they fail to rectify their status before FATF’s next evaluation in June. If the minimum penalty of KD 1,000 is imposed on each, total fines could reach 15 million dinars.
Although the grace period for compliance expired in April, the Ministry had delayed enforcement to give businesses time to update records, particularly those with legal disputes or challenges due to being abroad. However, FATF is now requiring swift enforcement to avoid regulatory gaps.
A tiered penalty mechanism is being considered:
- Initial fine: KD 1,000
- If unresolved after one month: Second fine of KD 1,000
- Repeat violations could escalate up to KD 10,000
Entities under liquidation or set for license cancellation will be exempt, but no exemptions will be given for those facing legal disputes.
In a related move, the Ministry of Commerce signed a Memorandum of Understanding (MoU) with the Ministry of Interior, represented by the General Directorate of Anti-Money Laundering and Combating the Financing of Terrorism.
The agreement focuses on data exchange, regulatory integration, and enhanced case handling efficiency, reinforcing Kuwait’s anti-financial crime infrastructure.
Officials affirmed that this joint effort supports the national strategy and improves coordination across enforcement bodies to better detect and prevent financial crimes.
