Kuwait makes progress on 7 FATF criteria
- A step reflecting a series of legislative, regulatory, and supervisory reforms
- Significant improvement raises the rating of recommendations to “largely compliant”
- Supervision of financial institutions, non-profit organizations, and beneficial ownership included among the areas of improvement
Kuwait has strengthened its compliance with international standards in the fields of combating money laundering, terrorist financing, and the financing of proliferation of weapons of mass destruction, following progress in the technical assessment of seven key recommendations under the Financial Action Task Force (FATF) standards. This development reflects a series of legislative, regulatory, and supervisory reforms implemented by government entities in recent periods.
This progress coincides with government efforts to enhance adherence to international standards. During its recent meeting, the Council of Ministers heard a presentation from Minister of Finance Dr. Yaqoub Al-Rafai regarding national efforts to strengthen the framework for combating money laundering, terrorist financing, and the financing of proliferation of weapons of mass destruction, as part of preparations for drafting the first report on the implementation of the FATF action plan.
The improvement in Kuwait’s rating was included in the second enhanced follow-up report on Kuwait, following the request for a technical re-rating issued in May 2026 by the FATF Middle East and North Africa Regional Organization (MENAFATF). The report reviewed the measures taken by Kuwait since the adoption of the Mutual Evaluation Report in 2024.
The improvements covered areas such as targeted financial sanctions, terrorist financing, financing of proliferation of weapons of mass destruction, supervision of non-profit organizations, corporate transparency and beneficial ownership, supervision of financial and non-financial institutions, and international legal cooperation.
In its report, FATF noted that Kuwait’s issuance of Ministerial Decision No. (8) of 2025, concerning the executive regulations of the Committee for Implementing Security Council Resolutions issued under Chapter VII, contributed to strengthening mechanisms for listing, freezing of funds and assets, and implementation of international decisions within specified timeframes.
In the area of non-profit organizations, the rating for Recommendation 8 was upgraded from “partially compliant” to “largely compliant,” following the implementation of a risk-based supervisory approach.
Similarly, Recommendation 24, concerning the transparency of legal persons and beneficial ownership, saw an improvement from “partially compliant” to “largely compliant,” after the development of the beneficial ownership system and the enhancement of disclosure requirements regarding actual ownership and control of companies.
As a result of Kuwait’s efforts, the rating for Recommendation 26, concerning the regulation and supervision of financial institutions, was upgraded from “partially compliant” to “largely compliant.” This followed the enhancement of risk-based supervisory methodologies and the development of inspection plans and risk-based classification of financial institutions by the main regulatory authorities, including the Central Bank of Kuwait, the Capital Markets Authority, the Insurance Regulatory Unit, and the Ministry of Commerce and Industry.
The rating for Recommendation 28, concerning the supervision of designated non-financial businesses and professions, such as dealers in precious metals and stones, real estate agents, lawyers, and accountants, also improved from “partially compliant” to “largely compliant,” following the enhancement of inspection procedures, awareness initiatives, and due diligence requirements.
In the field of international legal cooperation, Kuwait upgraded the rating for Recommendation 38, concerning freezing and confiscation, from “partially compliant” to “largely compliant,” after enhancing its capacity to execute requests for mutual legal assistance and exchange financial and judicial information with international authorities.
The report noted that, despite the improvement in the technical classification of the seven recommendations, Kuwait will continue its Enhanced Follow-up Program, with the third follow-up report to be submitted to the 43rd General Assembly in November 2026.
