Kuwait Tightens Anti-Money Laundering Law for Gold and Real Estate Sectors

KUWAIT: Kuwait has introduced new anti-money laundering and counter-terrorism financing requirements for businesses operating in the gold, precious metals and real estate sectors, under two decisions issued by Minister of Commerce and Industry Osama Al-Boodai.

The measures apply risk-based compliance requirements to gold-sector companies and real estate brokers and intermediaries, with a focus on customer verification, beneficial ownership, transaction monitoring and suspicious activity reporting.

According to KUNA, the new framework is intended to strengthen oversight across sectors considered particularly exposed to financial crime risks.

New Requirements for Gold and Precious Metals Businesses

Under Decision 172, companies operating in the gold, precious stones and precious metals sector are required to establish internal controls based on their exposure to money laundering and terrorism financing risks.

Businesses must carry out due diligence on customers and beneficial owners, monitor transactions, report suspicious activity and retain relevant records.

The decision also requires companies to provide appropriate training for employees responsible for compliance and customer-facing activities.

The risk-based approach means businesses will be expected to adjust the level of scrutiny applied to customers and transactions according to the level of potential exposure identified.

Real Estate Brokers Face Similar Compliance Obligations

Decision 173 introduces comparable requirements for real estate businesses, including brokers and intermediaries.

Companies must verify the identity of customers and beneficial owners, understand ownership and control structures and maintain transaction and due-diligence records for at least five years.

Suspicious transactions must also be reported to the Kuwait Financial Intelligence Unit.

The new rules place greater responsibility on real estate firms to understand who ultimately owns or controls entities involved in property transactions and to maintain documentation that can be reviewed by authorities when required.

Broader Compliance Focus

The two decisions bring both sectors under more formalised risk-based compliance frameworks, increasing requirements around internal procedures, record keeping and transaction monitoring.

For real estate businesses in particular, the measures increase the compliance burden associated with customer onboarding and beneficial ownership checks, while reinforcing the role of brokers and intermediaries in identifying potentially suspicious transactions.

The changes also reflect Kuwait’s wider efforts to strengthen financial transparency and improve controls across sectors where high-value transactions are common.