Anti-money laundering and combating the finance of terrorism
(AML-CFT) have been of great concern for all governments
worldwide due to their detrimental effects on economies
and internal security of such countries.

Anti-money laundering and combating the finance of terrorism
(AML-CFT) have been of great concern for all governments
worldwide due to their detrimental effects on economies
and internal security of such countries.
Anti-money laundering and combating the finance of terrorism (AML-CFT) have been of great concern for all governments worldwide due to their detrimental effects on economies and internal security of such countries.
Pursuant to Law No. 106 of 2013 enacted in the State of Kuwait, Article (2) thereof sets forth the definition of the money laundering crime as follows:
“Any person who knows that funds are the proceeds of crime and who has done the following acts voluntarily shall be considered to have committed a money laundering offense:.
A legal person shall be held liable for a money laundering offense if it were committed in its name or to its credit.
Punishment of the person for a predicate offense shall not preclude conviction of that the same person for a money laundering offense.
When establishing that funds are proceeds of crime, a conviction for the commission of a predicate offense shall not be required.
Article (3) of the same Law sets forth the definition of financing of terrorism crime:
Any person who by any means, directly or indirectly, unlawfully and willfully, collects or provides funds, with the knowledge that they will be used or with the intent that they should be used, in full or in part, in order to carry out a terrorist act or for the benefit of a terrorist organization or of a terrorist shall be considered to have committed a terrorism financing offense.
Any of the acts mentioned in the previous paragraph shall be considered a terrorism financing offense even if the terrorist act does not occur, or if the funds are not actually used to commit or attempt to commit the act or if the funds are not linked to a specific terrorist act.
It is the Financial Action Task Force (FATF), which is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions.
Article (16) of Law No. (106) of 2013, as amended, concerning Anti-Money Laundering and Combating the Financing of Terrorism sets forth establishing a Unit called the “Kuwait Financial Intelligence Unit”. It shall be an independent legal person and serve as the body responsible for receiving, requesting, analyzing, and disseminating information concerning suspected proceeds of crime or funds related, linked to or to be used for money laundering or terrorism financing according to the provisions of this Law.
The State of Kuwait enacted legislation addressing countering money laundering and combating the financing of terrorism. Such legislation includes Law No. (106) of 2013 concerning Anti-Money Laundering and Combating the Financing of Terrorism, and its Executive Regulations issued under Ministerial Resolution No. 37 of 2013.
The State of Kuwait’s regulators concerned with the supervision of AML-CFT are as follows:
Central Bank of Kuwait | : It is tasked with supervising banks, exchange companies and financing companies |
Ministry of Commerce & Industry | : It is tasked with supervising insurance companies, agents and brokers, exchange establishments, real estate brokers, merchants of precious metals and stones, and accountants |
Capital Markets Authority | : It is tasked with supervising investment companies, securities trading companies, financial brokerage companies, trustees, asset managers, mutual funds and custodians |
Self-Regulatory Organizations Lawyers Association | : It is tasked with supervising the legal profession. |
These requirements and determinants are stated in the provisions of the Executive Regulations of Law No. 7 of 2010 regarding the Establishment of Capital Markets Authority and Regulation of Securities Business, as amended, Module 16: Anti-Money Laundering & Combating Financing of Terrorism.
The AML-CFT mandatory requirements and determinants include but are not limited to:
Yes, CMA requires engaging an external auditor to prepare a report including the evaluation of compliance with all legislative determinants and requirements set forth in AML-CFT Law as well as CMA regulations issued in this regard. The required report should be prepared on annual basis for the period from 1 January to 31 December of every year, and provide CMA with a copy thereof not later than 31 March of every year as per the following references:
(Reference: Executive Regulations – Module 16: Anti-Money Laundering & Combating Financing of Terrorism, Article 7.7)
(Reference: CMA Circular No. 13 of 2017 dated 14/12/2017)
Assurance Report on Compliance with AML-CFT Legislation
Such report includes matching the mandatory AML-CFT requirements and determinants issued by CMA and the implementation of such requirements and determinants by the licensed person, and identifying the deficiencies to take corrective actions and prevent reoccurrence thereof.