Kuwait approves draft law with KD500,000 fines to combat money laundering

Dubai: Kuwait has introduced sweeping new penalties, including fines of up to KD500,000 ($1.62 million), as part of a newly approved draft law aimed at strengthening its fight against money laundering and terrorist financing.

The move underscores the country’s commitment to aligning national legislation with international standards, particularly UN Security Council resolutions.

The draft law was approved during the Cabinet’s weekly meeting, following a recommendation from the Ministerial Legal Affairs Committee. It will now be submitted to Sheikh Meshal Al Ahmad Al Jaber Al Sabah, Emir of Kuwait, for final approval.

The proposed legislation enhances the government’s authority to implement measures based on international obligations, including the freezing of assets, suspension of financial transactions, and listing of individuals or entities suspected of involvement in terrorism or the proliferation of weapons of mass destruction.

 According to the draft text, Cabinet decisions will be issued based on recommendations from the Minister of Foreign Affairs and will take effect immediately upon issuance.

The law also includes safeguards to protect the rights of individuals acting in good faith. To ensure operational flexibility, the Cabinet may delegate enforcement powers to individual ministers, who may establish specialised committees to implement the provisions.

 Bylaws will define the procedures for publishing decisions, managing appeals, handling frozen assets, and allowing limited access to funds for basic living expenses, all under strict controls.

The draft law introduces financial penalties ranging from KD 10,000 to KD 500,000 for violations of measures enacted under the new legislation. These penalties may be applied along with sanctions imposed by financial regulatory authorities.

Existing laws and regulations related to UN counterterrorism mandates will remain in effect unless explicitly repealed or found to be in contradiction with the new provisions.