Regulatory changes introduced by MCI aim at combating illicit funds in the real estate sector
In a bid to enhance financial crime prevention efforts, the Ministry of Commerce and Industry in Kuwait has introduced a new resolution, Ministerial Resolution No. (25) of 2025. This decision targets real estate brokers and dealers in precious jewelry by establishing specific violations and penalties related to money laundering and terrorist financing.
The key aspects of the resolution include the definition of violations and the imposition of penalties. Violations of the new procedures designed to detect suspicious transactions and financial flows related to money laundering and terrorist financing within real estate activities and the dealing of precious jewelry are considered breaches. These include inadequate due diligence, failure to report suspicious activities, and non-adherence to anti-money laundering (AML) and counter-terrorist financing (CTF) obligations.
Penalties for such violations include hefty fines, aligning with amendments made to Kuwait Law No. 106/2013 in June 2025. The government is now empowered to enforce decisions implementing UN Security Council resolutions on freezing assets and combating terrorism financing. Violators face significant financial penalties to ensure compliance and deter illicit activities.
The resolution is supported by memoranda of understanding (MoUs) signed between various Kuwaiti authorities. These agreements facilitate operational cooperation and information exchange aimed at strengthening oversight and enforcement against money laundering and terrorist financing in these sectors. Authorities involved include the Interior Ministry's money laundering department, customs, the Capital Markets Authority, and the Financial Intelligence Unit.
The regulations focus on tightening controls over specific non-financial businesses and professions (DNFBPs), which are often vulnerable to being misused for illicit financial activities. The new rules and procedures aim to strengthen Kuwait's efforts in the global fight against financial crimes.
The resolution outlines new rules and procedures for identifying and addressing violations related to money laundering and terrorist financing. It categorizes 19 specific violations, with 4 being low-risk, 9 being medium-risk, and 6 being high-risk. The ministry did not specify the exact nature of the financial penalties, but the goal in imposing them is to enforce compliance, not to punish or harm violators.
This information was reported by Al-Rai daily, highlighting Kuwait's commitment to maintaining a transparent and accountable financial system. The new rules and procedures are part of ongoing efforts to tighten controls over DNFBPs, contributing to a safer and more secure financial environment for all.
[1] Al-Rai daily, Kuwait Strengthens Financial Crime Prevention with New Resolution Targeting Real Estate and Jewelry Sectors, [accessed 2025-10-01]. [3] Al-Rai daily, Kuwait Introduces New Rules and Procedures for Real Estate Brokers and Precious Jewelry Dealers, [accessed 2025-10-01]. [5] Al-Rai daily, Kuwait's Ministry of Commerce and Industry Issues Resolution to Combat Money Laundering and Terrorist Financing, [accessed 2025-10-01].
Investing in real-estate or dealing with precious jewelry in Kuwait now requires adherence to anti-money laundering (AML) and counter-terrorist financing (CTF) obligations, as outlined in Ministerial Resolution No. (25) of 2025, due to violations such as inadequate due diligence, failure to report suspicious activities, and non-compliance with these regulations. Penalties for such violations include hefty fines, as part of Kuwait's commitment to maintaining a transparent financial system and combating financial crimes.
