Kuwait Modifies Anti-Money Laundering Legislation to Match United Nations Security Council Resolutions
In a significant move to combat money laundering and terrorism financing, the Council of Ministers in Kuwait has issued Decree-Law No. (76) of 2025, amending Law No. (106) of 2013. The amendments introduce a new provision, Article (33 bis), aimed at reinforcing Kuwait's efforts against financial crimes and aligning the domestic AML/CFT framework with international standards.
The key change lies in Article (33 bis), which empowers the Council of Ministers to implement and enforce directives issued by the United Nations Security Council (UNSC). This includes the adoption of necessary measures to comply with international obligations related to sanctions and counter-terrorism financing. The Council of Ministers now has the authority to take swift and binding action in accordance with UNSC resolutions without needing further legislative approval.
The amendment aims to enhance Kuwait’s ability to respond effectively to evolving global terrorism financing threats and money laundering schemes. Among the new decisions that may be made are listing individuals and entities, banning any dealings with them, and freezing their assets.
The replaced Article (25) previously granted the Council of Ministers the authority to issue decisions to implement Security Council directives. The financial penalty for such violations ranges from KD 10,000 to KD 500,000. The amendments equip relevant authorities with tools to respond swiftly and effectively to evolving threats.
The broader AML framework in Kuwait already includes Law No. 106 of 2013 and various regulations overseen by bodies like the Central Bank of Kuwait and the Kuwait Financial Intelligence Unit (KFIU), which coordinate efforts in monitoring and enforcing AML compliance.
The changes reaffirm Kuwait's commitment to fulfilling international obligations, particularly those related to countering terrorism and preventing the proliferation of weapons of mass destruction. These obligations mainly stem from United Nations Security Council resolutions.
The introduction of Article (33 bis) represents a significant legal empowerment of the Council of Ministers to directly implement UN Security Council directives, thereby strengthening Kuwait’s compliance with international AML and counter-terrorism financing standards. The amendments aim to reinforce Kuwait's alignment with international standards and ensure the protection of good-faith parties, subject to the condition that they do not infringe on the rights of bona fide third parties.
The changes were reported by Al-Jarida daily and are part of Kuwait's ongoing commitment to fulfilling international obligations, particularly those related to countering terrorism and preventing the proliferation of weapons of mass destruction.
- The new provision, Article (33 bis), in Kuwait's amended law empowers the Council of Ministers to implement and enforce directives issued by the United Nations Security Council (UNSC), aligning Kuwait's domestic AML/CFT framework with international standards and strengthening its compliance with global anti-money laundering and counter-terrorism financing policies.
- In response to evolving global threats of terrorism financing and money laundering, the amended law authorizes the Council of Ministers to list individuals and entities, ban any dealings with them, and freeze their assets, thereby reinforcing Kuwait's efforts against financial crimes.
- Kuwait's Financial Industry, including its banks and businesses, must now adhere to the amended regulations in Law No. 106 of 2013 and comply with UN Security Council resolutions, as the introduction of Article (33 bis) reaffirms the country's commitment to countering terrorism and preventing the proliferation of weapons of mass destruction, further underlining its international obligations within the realm of policy-and-legislation and politics.
