Ministry of Commerce Updates Indicators of Suspicion in Brokers' Transactions

The Ministry of Commerce and Industry issued the updated guide for reporting suspected cases of money laundering or terrorist financing, specifically tailored for the real estate brokerage sector. The ministry noted that the annex includes 19 indicators of suspicion across categories such as customer due diligence, customer files, and behavioral indicators.

The guide outlines high-level customer due diligence requirements for real estate brokers related to risks. International organizations, such as the Financial Action Task Force (FATF), have established standards that define how countries combat money laundering and terrorist financing. These standards include several provisions, many of which are directly linked to reporting obligations. Kuwait has implemented these standards through cooperative practices among competent authorities.

The Ministry of Commerce specified the real estate professions subject to legislation. Article 1 of Law No. 106 of 2013 concerning the prevention of money laundering and terrorist financing stipulates that real estate brokers, independent lawyers, independent legal professionals, and independent accountants are subject to the provisions of the law when they prepare, execute, or conduct transactions for clients involving the purchase or sale of real estate. These professional categories are hereinafter referred to simply as “real estate brokers.”