Strengthening Kuwait’s anti-money laundering and counter-terrorism financing framework with stronger enforcement powers.
Kuwait has strengthened its anti-money laundering and counter-terrorism financing (AML/CFT) framework to support faster enforcement and meet global compliance standards. Recent amendments to the provisions of the AML/CFT Lawgive authorities broader powers to act on UN sanctions related to terrorism and the proliferation of weapons of mass destruction, ensuring Kuwait’s legal framework can support the swift implementation of international measures.
Key updates:
- The Council of Ministers has now replaced the Cabinet and can, additionally, freeze assets, block financial transactions, list or delist individuals or entities, and issue the necessary decisions in line with UN Security Council resolutions — all with immediate effect.
- Protections remain in place for third parties acting in good faith.
- Powers may be delegated to other ministers or committees to enable efficient enforcement.
- Clear regulations will outline procedures for publishing decisions, managing appeals, overseeing frozen assets, and granting limited access to funds for essential needs or obligations.
- Regulations and decisions issued prior to the recent amendments concerning the implementation of UN Security Council resolutions will remain in force, provided they do not conflict with these amendments.
- A new provision introduces fines of up to KWD 500,000 for violations, in addition to existing penalties under Kuwait’s AML/CFT law, for those who violate the decisions issued by the Council of Ministers.
Why it matters:
This amendment enhances Kuwait’s ability to act quickly and decisively on international obligations, particularly around sanctions enforcement. For businesses and financial institutions, these changes increase compliance expectations and heighten the risk of exposure where there are insufficient internal controls.
How ASAR can support:
ASAR advises clients on sanctions compliance and regulatory risk management, including:
- Reviewing internal AML/CFT controls and compliance programs;
- Assessing risk exposure linked to designated individuals and entities;
- Navigating asset freeze orders and applying for fund access;
- Advising on appeals and enforcement issues.
Our cross-border experience and understanding of Kuwait’s regulatory environment help clients stay ahead of regulatory risk in Kuwait and across the region.
For support with sanctions compliance or AML/CFT advisory, contact us asar@asarlegal.com to speak with our team.
