Stronger controls, culture of compliance boost Kuwait’s fight against money laundering
The Ministry of Commerce and Industry announced that recent months have seen notable improvements in the implementation of anti-money laundering (AML) and counter-terrorism financing (CTF) controls, as well as in the overall compliance culture among sectors under its supervision.
In its sectoral risk assessment report for money laundering and terrorist financing — covering activities up to the second quarter of 2025 — the Ministry said it expects the classification of Kuwait’s legal and regulatory framework to be upgraded from “substantial” to “strong”.
This upgrade is anticipated once the full effects of ongoing reforms take hold and electronic data-sharing systems with the Ministry of Justice and the General Administration of Customs become fully operational, reports Al-Rai daily.
According to the report, the past year witnessed a significant acceleration in the development of the new regulatory framework.
The Anti-Money Laundering and Counter-Terrorism Financing Department was restructured to enhance specialization and efficiency.
It has adopted risk-based inspection procedures, increased on-site supervision resources, and introduced strategic plans to ensure gradual but effective implementation of the new approach.
In terms of sectoral compliance, the real estate brokerage sector showed better performance than the gold and precious metals sector, following a recent licensing campaign that removed unqualified and non-compliant operators.
However, the report noted that participation in training and awareness programs remains relatively low across both sectors.
Enforcement data revealed that about 40% of entities in the gold, precious metals, and gemstones sector, and 20% of entities in the real estate sector, faced penalties such as warnings or fines for AML/CTF-related violations.
The Ministry highlighted five key measures that have strengthened Kuwait’s fight against money laundering:
- Developing electronic systems, such as the online real estate brokerage platform.
- Tightening licensing procedures, particularly regarding verification of beneficial ownership.
- Enhancing interdepartmental cooperation within the Ministry’s AML and sectoral divisions.
- Shutting down illegal online platforms in the gold and jewelry sector.
- Conducting a comprehensive license review, resulting in the delisting of inactive and unprofessional brokers.
The Ministry emphasized that these actions reflect Kuwait’s ongoing commitment to strengthening transparency, protecting markets, and aligning its financial oversight systems with international AML/CTF standards.
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