Kuwait Approves Law With KD500K Fines for Money Laundering

Kuwait has just taken a major step in the fight against money laundering and terrorist financing by approving a powerful new draft law that includes penalties of up to KD500,000 (approximately $1.62 million). The law aims to align the country’s financial regulations with global standards, especially those set by the United Nations Security Council.

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What the New Law Means

The Cabinet approved the draft law during its weekly meeting, based on a recommendation from the Ministerial Legal Affairs Committee. It will now be sent to His Highness Sheikh Meshal Al Ahmad Al Jaber Al Sabah, Emir of Kuwait, for final approval.

This move gives Kuwaiti authorities greater power to enforce international obligations, including freezing assets, suspending financial transactions, and listing individuals or entities linked to terrorism or the spread of weapons of mass destruction.

Immediate Action and Oversight

Under the new legislation, decisions by the Cabinet, based on the Minister of Foreign Affairs’ recommendations, will take effect immediately. The law also allows the Cabinet to delegate enforcement to individual ministers, who can form specialised committees to carry out specific provisions.

Fines and Penalties

Violators of the new rules could face steep financial penalties ranging from KD10,000 to KD500,000. These fines can be imposed alongside other sanctions from Kuwait’s financial regulatory authorities.

Protecting Rights and Ensuring Transparency

The law also includes safeguards to protect individuals acting in good faith. Detailed bylaws will be issued to lay out procedures for publishing decisions, handling appeals, managing frozen assets, and allowing access to limited funds for essential living expenses under tight supervision.

No Conflict With Existing Laws

The draft makes clear that current laws related to the UN’s counterterrorism measures will stay in place, unless they directly conflict with the new regulations.

Kuwait’s latest legislation signals a firm stance on financial crime, showing both domestic and international audiences that the country is serious about maintaining a clean and transparent financial system.