New law grants Cabinet power to freeze funds under UN terror financing resolutions
Decree-Law No. 76 of 2025 has been published in the Official Gazette (Kuwait Alyawm) amending some provisions of Law No. 106 of 2013 on combating money laundering and terrorist financing.
The updated law strengthens Kuwait’s legal mechanisms for implementing United Nations Security Council (UNSC) resolutions under Chapter VII of the UN Charter, particularly those targeting terrorism, its financing, and the proliferation of weapons of mass destruction, reports Al-Anba daily.
Under the newly amended Article 25, the Council of Ministers is mandated, upon the recommendation of the Minister of Foreign Affairs, to issue the necessary decisions for implementing UNSC resolutions.
These include decisions related to the listing and delisting of individuals or entities, freezing funds and assets, and prohibiting financial transactions with natural or legal persons. The law emphasizes that such decisions take effect immediately upon issuance, and must respect the rights of bona fide third parties.
The Council of Ministers is also authorized to delegate powers to another minister, who may in turn form a special committee to oversee the implementation of these decisions.
The executive regulations accompanying the law will detail procedures for publishing decisions, submitting appeals, managing frozen assets, and authorizing limited fund access for living expenses or financial obligations, ensuring funds are used only for permitted purposes.
A new penal provision (Article 33 bis) was added, imposing fines between KD 10,000 and KD 500,000 for each violation of Cabinet decisions made under Article 25. This penalty is in addition to any sanctions regulatory bodies may impose on financial institutions or designated non-financial businesses and professions, as outlined in Article 15 of the law.
To maintain regulatory continuity, Article 3 of the Decree-Law stipulates that all existing regulations and decisions issued prior to the law’s enactment will remain valid, unless they conflict with its provisions or are formally amended or repealed. This ensures that frameworks like the Special Committee formed under Ministerial Resolution No. 8 of 2025 continue to function effectively.
The explanatory memo accompanying the decree underlines Kuwait’s commitment to international obligations, stating that the law ensures the balance between effective compliance with Security Council resolutions and respect for constitutional guarantees and individual rights.
It provides a solid legal foundation for swift, transparent implementation of international mandates, while enabling appeals and limited access to frozen assets for humanitarian or essential financial purposes.
Finally, Article 4 tasks the Prime Minister and relevant ministers with enforcing the provisions of the law, which officially entered into force upon its publication in the Official Gazette Kuwait Alyawm.
