Kuwait bans cash payments for vehicle sales in push for financial transparency
Rule that includes used cars sales and auctions aims to curb illicit financial activities
Dubai: Kuwait has officially banned cash transactions for all vehicle sales, a move aimed at enhancing transparency and curbing illicit financial activities in the automotive market.
The new regulation, announced by the Minister of Commerce and Industry, Khalifa Al Ajeel, took effect on October 14 and prohibits cash payments in the sale of both light and heavy vehicles.
The decision broadens existing restrictions by adding four categories to the cash ban: "buying and selling motor vehicles," "wholesale and retail trade of new and used motor vehicles," "car auctions," and the "sale of scrap cars." The regulation applies to car dealerships, agents, and auctions involved in vehicle transactions on a commission basis.
This follows an earlier mandate issued by Al Ajeel on October 1, which banned cash transactions for companies and individual businesses involved in the sale of all types of vehicles, including those sold wholesale, retail, or on commission.
The new measures are part of Kuwait’s efforts to promote transparency in financial transactions and align with global standards to prevent money laundering and other financial crimes in high-value markets like automotive sales.