Kuwait's New Anti-Money-Laundering Rules for Gold Dealers and Real Estate Brokers: A Compliance Roadmap

On 31 August 2026 the Minister of Commerce and Industry issued Ministerial Decisions Nos. 172 and 173 of 2026, published in Kuwait Al-Youm Issue 1807 on 6 September 2026 and in force from that date. The first governs businesses that trade in gold, precious stones and precious metals; the second governs real estate brokers and intermediaries. They replace rules dating from 2016 (Ministerial Decisions Nos. 431 and 430 of 2016) and tie both trades directly to Law No. 106 of 2013 on combating money laundering and terrorist financing.

Why this matters

In February 2026 the Financial Action Task Force (FATF), which sets the global anti-money-laundering standards, placed Kuwait on its list of jurisdictions under increased monitoring, usually called the grey list. Kuwait's action plan includes closer supervision of real estate agents and dealers in precious metals and stones, two trades where the 2024 mutual evaluation found weak oversight. The decisions come with an enforcement toolkit that did not exist in 2016: Ministerial Decision No. 25 of 2026 sets a penalty matrix for non-financial businesses, and the Ministry's anti-money-laundering department conducts field inspections.

The cash ban, in practice

Article 12 of Decision 172 prohibits cash in the sale or purchase of gold, precious stones and precious metals. Payment may only be made through non-cash instruments approved by the Central Bank of Kuwait, in practice cards, K-Net, bank transfer and licensed electronic wallets. There is no minimum amount. Article 13 of Decision 173 goes further for property deals: a broker may not accept, receive or hand over any cash at all, including the deposit paid to hold a property, advance payments or any other sum connected with the transaction. Every amount must move through the banking system, and a customer who insists on cash is now a reason for suspicion rather than a sale.

Know your customer, in plain words

Neither business may deal with an anonymous customer or one using a false name. Identity must be verified before any transaction, and again if suspicion arises or earlier information looks doubtful. Gold dealers must attach the transaction documents to any deal above KD 3,000 or its equivalent in foreign currency.

The person at the counter is not always the real customer. Both decisions require a signed statement on whether the customer acts for someone else and, if so, the beneficial owner must be identified and verified. Gold dealers must keep a separate electronic register of beneficial owners with the name, purpose, relationship to the buyer, invoice number and date. Politically exposed persons, meaning anyone who holds or has held a senior public function in Kuwait or abroad, together with family to the second degree and close associates, require senior management approval, steps to establish the source of funds and closer monitoring. The same enhanced checks apply to other high-risk cases, such as non-resident customers, dealings that are not face to face and customers linked to high-risk or sanctioned countries.

Reporting to the Financial Intelligence Unit: two business days

Where a business suspects that a transaction, or an attempted one, involves the proceeds of crime or is linked to money laundering or terrorist financing, it must notify the Kuwait Financial Intelligence Unit within two business days at most, whatever the amount. Neither the business nor its managers or staff may tell the customer or anyone else that a report has been or will be made. If identification cannot be completed, the transaction must be refused and the relationship ended, with notice to the Unit.

Records, systems and the compliance officer

Records must be kept for at least five years: the identification file, every transaction in enough detail to reconstruct it, copies of reports sent to the Unit, and the risk assessment itself. Each business must appoint an independent compliance officer at senior management level and send that officer's name, qualifications, telephone number and email address to the Ministry's anti-money-laundering department, notifying any change immediately. Senior management must review compliance periodically and commission an independent audit, which a gold dealer may, with the Ministry's approval, entrust to its external auditor. Staff must be screened for integrity and trained continuously, and the training must reach the board and management. Gold dealers must run sales and the annual stock count on an approved electronic system with an audit trail; brokers must use the electronic real estate broker system, which replaced the paper ledger under Ministerial Decision No. 234 of 2024.

Supervision and penalties

The Ministry's anti-money-laundering department supervises both trades. A proven breach exposes the business to the measures and penalties in Law 106/2013 and the decisions issued under it, ranging from warnings and financial penalties to restrictions on the business and, in serious cases, suspension or cancellation of the licence.

A thirty-day plan

In the first week, stop taking cash, brief front-line staff, and update receipts and contracts. In the second week, appoint the compliance officer, notify the Ministry, and put a written identification checklist at every point of sale or client meeting. In the third week, complete the risk assessment and the policies, have senior management sign them, and set up the beneficial-owner register and the electronic records. In the fourth week, train everyone, agree the internal route for reporting suspicion within the two-day window, and diarise the management review and the independent audit.

WEFAQ advises gold and jewellery traders and real estate offices to treat these decisions as operating rules rather than paperwork. The obligations are specific, and Kuwait's exit from the FATF grey list will depend in part on visible enforcement in exactly these two sectors. Businesses that document their controls now will be in a far stronger position when the inspector arrives.

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Source: Ministerial Decisions Nos. 172 and 173 of 2026 of the Minister of Commerce and Industry; Kuwait Al-Youm, Issue 1807, pages A12 to A22, dated 6 September 2026; Law No. 106 of 2013 on combating money laundering and terrorist financing; Ministerial Decision No. 25 of 2026; Ministry of Commerce and Industry statement to KUNA, 1 September 2026; FATF, jurisdictions under increased monitoring, February 2026; FATF/MENAFATF mutual evaluation report of Kuwait, 2024.

This article is provided for general information only and does not constitute legal advice. For advice specific to your circumstances, please contact WEFAQ Law Firm.