Kuwait introduces stricter money laundering rules for gold, property sectors

New rules require stricter customer checks, transaction monitoring and reporting

Kuwait has introduced stricter anti-money laundering and counter-terrorism financing rules for gold and precious metals traders and the real estate sector, requiring businesses to strengthen customer checks, monitor transactions and report suspicious activity.

Osama Khaled Boodai, Minister of Commerce and Industry issued two decisions setting out risk-based compliance requirements for businesses operating in the two sectors.

Under Decision No. 172, companies dealing in gold, precious stones and precious metals must establish internal controls based on their exposure to money laundering and terrorism financing risks.

Businesses are required to conduct due diligence on customers and beneficial owners, monitor transactions, report suspicious activity, retain relevant records and provide employees with appropriate training.

Decision No. 173 imposes similar requirements on real estate brokers and intermediaries, including verifying customers and beneficial owners and understanding corporate ownership and control structures.

Real estate businesses must also maintain relevant records for at least five years and report suspicious transactions to the Kuwait Financial Intelligence Unit.

The measures place greater responsibility on businesses in both sectors to identify potential risks, scrutinise transactions and ensure compliance with Kuwait’s anti-money laundering and counter-terrorism financing requirements.

Source Gulf News