Minister of Trade Issues Two Decisions to Regulate Anti-Money Laundering and Counter-Terrorism Financing in the Gold and Real Estate Sectors

- They include controls and procedures to enhance compliance levels and regulate the obligations of entities under the ministry’s supervision.

- Adoption of a risk-based approach, customer due diligence, and verification of the beneficial owner.

- Retention of records for five years, reporting of suspicious transactions, and appointment of a compliance officer.

The Minister of Commerce and Industry, Osama Al-Boudi, issued Ministerial Decrees No. 172 and No. 173 of 2026 regarding the controls governing the compliance of institutions and companies operating in the trade of gold, precious stones, and precious metals, as well as practitioners of brokerage and real estate mediation, with anti-money laundering (AML) and counter-financing of terrorism (CFT) requirements.

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The Ministry of Commerce stated in a statement to the Kuwait News Agency (KUNA) on Tuesday that the two decrees come within the framework of enhancing compliance levels and regulating the obligations of the sectors under its supervision, thereby supporting efforts to combat money laundering and the financing of terrorism.

It said 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, reviewing these assessments periodically, in addition to applying customer due diligence measures, verifying the identity of customers and the beneficial owner, understanding the purpose of the business relationship, and continuously monitoring transactions.

It clarified that the decree emphasizes enhanced 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, retain records, train employees, and cooperate with regulatory and competent authorities.

It noted that Decree No. 172 repealed Ministerial Decree No. 431 of 2016 and any provision contrary to its provisions, and stipulated its publication in the Official Gazette and its implementation from the date of publication.

The ministry indicated that the second decree, No. 173, applies to companies and institutions practicing brokerage and real estate mediation, obligating 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.

It added that the decree obligates covered entities to identify, assess, and understand money laundering, terrorism financing, and proliferation financing risks, and to apply a risk-based approach, in addition to verifying the identity of customers and the beneficial owner, understanding ownership and control structures, continuously monitoring the business relationship and transactions, and updating data and documents as needed.

It stated that the decree requires the application of enhanced due diligence procedures in high-risk cases and transactions, and allows for simplified procedures for low-risk cases in accordance with established controls. It also obligates the abstention from establishing a business relationship or executing a transaction if due diligence procedures cannot be completed.

It 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, and to report suspicious transactions to the Kuwait Financial Intelligence Unit, while prohibiting the disclosure of information related to reports and taking necessary measures to implement targeted financial sanctions.

She added that the decision mandates the appointment of a compliance officer, the establishment of effective internal control systems, and the implementation of continuous training programs for employees, while subjecting policies and procedures to independent and effective review. The Ministry of Commerce and Industry will oversee compliance and take necessary regulatory measures.

She noted that Decision No. 173 repealed Ministerial Decision No. 430 of 2016 concerning the anti-money laundering and counter-terrorist financing controls for real estate brokers and agents, and stipulated its publication in the Official Gazette, with effect from the date of publication.