Regulators define waqf beneficiaries amid push for financial transparency
Move ensures Kuwait’s compliance with international standards
The Kuwaiti authorities have intensified efforts to identify beneficial owners in companies and legal entities — including waqfs (endowments) — in line with Financial Action Task Force (FATF) recommendations to combat money laundering and terrorist financing. Violators face fines ranging from 1,000 dinars to 10,000 dinars.
While waqfs are generally considered low-risk for money laundering due to local legal and religious restrictions, regulators stress the importance of transparency and documentation, reports Al-Rai daily.
The beneficial owners in a waqf include the donor, the agent (trustee), and the beneficiaries. These details must be recorded by the Ministry of Justice or Ministry of Awqaf and Islamic Affairs.
The National Committee for Combating Money Laundering emphasized that understanding the difference between legal ownership and beneficial ownership is vital for financial institutions.
Legal ownership reflects formal control, while beneficial ownership identifies the real individuals who ultimately benefit — which is more crucial in detecting and preventing financial crimes.
The move ensures Kuwait’s compliance with international standards and protects its financial system from abuse by enhancing transparency across legal and religious structures.
