Minister of Commerce Issues Two Decisions to Regulate Anti-Money Laundering and Counter-Terrorism Financing in the Gold and Real Estate Sectors
Kuwait City, Jan 1 (KUNA) -- The Minister of Commerce and Industry, Osama Al-Boudi, issued Ministerial Decrees No. 172 and No. 173 of 2026 concerning the regulations governing the compliance of institutions and companies operating in the gold, precious stones, and precious metals trade, as well as real estate brokers and agents, with anti-money laundering (AML) and counter-financing of terrorism (CFT) requirements.
In a statement to KUNA on Tuesday, the Ministry of Commerce emphasized that the decrees aim to enhance compliance levels and regulate the obligations of sectors under its supervision, thereby supporting efforts to combat money laundering and the financing of terrorism.
The ministry stated that Decree No. 172 obligates institutions and companies operating in the aforementioned field to establish internal policies, procedures, and control systems commensurate with the size and nature of their business and the level of risks they face. It added that the decree adopts a risk-based approach by identifying and assessing money laundering and terrorism financing risks associated with customers, products, services, transactions, and geographic areas, and by reviewing these assessments periodically. It also mandates the application of customer due diligence (CDD) measures, including verifying the identity of customers, beneficial owners, and the purpose of the business relationship, as well as continuous transaction monitoring.
The decree strengthens due diligence procedures in high-risk cases and prohibits establishing or continuing a business relationship or executing a transaction if the necessary verification requirements cannot be met or if there is suspicion that the transaction is linked to money laundering or terrorism financing. It also obligates covered entities to report suspicious transactions, maintain records, train employees, and cooperate with regulatory and competent authorities.
Decree No. 172 repeals Ministerial Decree No. 431 of 2016 and any provision contrary to its provisions, and stipulates its publication in the Official Gazette, with implementation effective from the date of publication.
The ministry clarified that the second decree, No. 173, applies to companies and institutions practicing real estate brokerage and mediation. It obligates them to establish internal policies, procedures, and control systems commensurate with the size and nature of their business and the level of risks they face. The decree requires covered entities to identify, assess, and understand money laundering, terrorism financing, and proliferation financing risks, and to apply a risk-based approach. It also mandates verifying customer and beneficial owner identities, understanding ownership and control structures, and continuously monitoring business relationships and transactions, updating data and documents as needed.
The decree requires enhanced due diligence procedures in high-risk cases and transactions, while allowing simplified procedures for low-risk cases according to established controls. It also prohibits establishing a business relationship or executing a transaction if due diligence procedures cannot be completed.
Furthermore, the decree obligates companies and institutions to retain records, documents, and data related to customers and transactions for a period of no less than five years. It mandates reporting suspicious transactions to the Kuwait Financial Intelligence Unit (KFIU), prohibits disclosing information related to reports, and requires taking necessary measures to implement targeted financial sanctions.
The decree also requires the appointment of a dedicated compliance officer, the provision of effective internal control systems and continuous training programs for employees, and the submission of policies and procedures to independent and effective review. The Ministry of Commerce and Industry will oversee compliance and take necessary regulatory actions.
Decree No. 173 repeals Ministerial Decree No. 430 of 2016 concerning anti-money laundering and counter-terrorism financing regulations for real estate brokers and agents, and stipulates its publication in the Official Gazette, with implementation effective from the date of publication.
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