Kuwait’s Ministry of Commerce and Industry has introduced new regulations targeting anti-money laundering (AML) and counter-terrorism financing measures within the gold, precious stones, precious metals, and real estate sectors. Minister Osama Al-Boodai signed two decisions designed to enhance oversight and due diligence obligations for businesses operating in these industries.
Under Decision 172, companies involved in the trade of gold and related valuable commodities must implement risk-based internal controls. This includes conducting thorough customer and beneficial owner verification, ongoing transaction monitoring, and reporting any suspicious activities to the relevant authorities. Firms are also required to maintain detailed records and provide regular training to employees on compliance requirements.
Similarly, Decision 173 extends comparable obligations to real estate brokers and intermediaries. These entities are mandated to verify the identities of clients and beneficial owners, gain a clear understanding of property ownership structures, and retain documentation for a minimum of five years. Real estate professionals must also report any suspicious transactions to the Kuwait Financial Intelligence Unit (KFIU), the body responsible for analyzing and investigating financial intelligence.
The newly introduced regulations aim to strengthen Kuwait’s ability to detect and prevent the misuse of financial systems in these sectors for illicit activities such as money laundering and terrorist financing. By enforcing comprehensive due diligence and monitoring procedures, the government seeks to align its financial oversight practices with international standards.
These measures reflect ongoing efforts by Kuwaiti authorities to enhance financial transparency and accountability, particularly in industries vulnerable to financial crimes. Compliance with the new rules is expected to improve the integrity of transactions involving precious metals and real estate, sectors often exploited for laundering illicit proceeds or disguising the origins of illegal funds.