Minister of Commerce Issues Two Decisions to Regulate Anti-Money Laundering and Counter-Financing of Terrorism in the Gold and Real Estate Sectors - Sarmad
(KUNA) – The Minister of Commerce and Industry, Osama Al-Boudi, issued Ministerial Decrees No. 172 and 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-terrorist financing (CFT) requirements.
In a statement to the Kuwait News Agency (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 terrorist financing. The ministry stated that Decree No. 172 obligates institutions and companies in the aforementioned sector to establish internal policies, procedures, and control systems commensurate with the size and nature of their operations and the level of risks they face.
It added that the decree adopts a risk-based approach by identifying and assessing money laundering and terrorist 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 measures, verification of customer and beneficial owner identities, understanding the purpose of the business relationship, and continuous monitoring of transactions.
The ministry clarified that 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 terrorist financing. It also requires covered entities to report suspicious transactions, maintain records, train employees, and cooperate with regulatory and competent authorities.
It noted that Decree No. 172 repeals Ministerial Decree No. 431 of 2016 and any provisions contrary to its terms, and stipulates its publication in the Official Gazette, with implementation effective from the date of publication.
The ministry indicated 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 operations and the level of risks they face.
It added that the decree requires covered entities to identify, assess, and understand the risks of money laundering, terrorist financing, and the financing of weapons proliferation, and to apply a risk-based approach. This includes verifying customer and beneficial owner identities, understanding ownership and control structures, continuously monitoring business relationships and transactions, and updating data and documents as needed.
It stated that the decree mandates enhanced due diligence procedures in high-risk cases and transactions, while allowing simplified procedures for low-risk cases according to established controls. It also requires refraining from establishing a business relationship or executing a transaction if due diligence procedures cannot be completed.
The ministry pointed out that 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 requires reporting suspicious transactions to the Kuwait Financial Intelligence Unit (KAFIU), prohibits disclosing information related to such reports, and mandates taking necessary measures to implement targeted financial sanctions.
It added that the decree requires the appointment of a dedicated compliance officer, the provision of effective internal control systems, and continuous training programs for employees. Policies and procedures must be subject to independent and effective review, while the Ministry of Commerce and Industry will monitor compliance and take necessary regulatory actions.
It noted that Decision No. 173 abrogated Ministerial Decision No. 430 of 2016 concerning the anti-money laundering and counter-terrorist financing regulations for real estate brokers and agents, and stipulated its publication in the Official Gazette, with effect from the date of publication. (End) WAM/TA
