Kuwait tightens AML rules with new guidelines for jewellery businesses to detect suspicious transactions, improve compliance and address FATF concerns.

Kuwait Tightens AML Rules to Strengthen Financial Security Measures

Kuwait tightens AML rules as the Gulf nation intensifies efforts to combat money laundering and terrorist financing risks while working towards removal from the Financial Action Task Force (FATF) grey list. The country’s Ministry of Commerce and Industry has introduced new guidelines for local jewellery businesses to identify suspicious transactions and strengthen anti money laundering (AML) and counter terrorist financing (CFT) measures.

The move comes after FATF placed Kuwait on its grey list in February due to identified gaps in its financial crime prevention framework. The international watchdog retained Kuwait’s status during its June meeting, prompting authorities to accelerate reforms.

Jewellery Sector Faces Increased Scrutiny

Under the new guidelines, jewellery businesses and employees will be required to adopt a risk based approach to monitoring transactions. The measures aim to help companies detect unusual activities, assess risks and maintain stronger records in line with international standards.

Authorities highlighted several warning signs, including attempts to hide the source of funds, incomplete customer information, forged identities and refusal to provide required documents, unexplained transactions and frequent changes in customer details.

"Kuwait needs to block all gaps and loopholes that may allow money launderers to do their illegal businesses," said Ali Al Anzi, head of Al Manakh Economic Centre.

Kuwait Expands Anti Financial Crime Campaign

The country has increased enforcement actions against businesses suspected of violating AML regulations. Recent measures include restrictions on cash transactions in certain sectors, stronger penalties for offenders and inspections targeting companies that fail to meet transparency requirements.

Officials said jewellery shops accounted for a significant share of AML and CFT violations identified in 2025. Authorities conducted raids against hundreds of businesses, including jewellery dealers and real estate firms for alleged violations.

Why Jewellery Businesses Are Targeted

Experts say jewellery and precious metals are often monitored closely because they are highly valuable, easily transferable and can potentially be used to move money outside traditional financial systems.

"Anti laundering campaigns in most countries target banks and jewellery shops. They target jewellers because precious metals and gemstones are attractive, relatively liquid and offer a degree of anonymity," said Jamal Banoun, manager of the SMS Economic Consulting Centre.

Kuwait’s Push for FATF Compliance

Kuwait introduced its first AML and CFT law in 2013, criminalising financial crimes and introducing penalties including fines and imprisonment. The latest reforms reflect the government’s effort to strengthen transparency, improve oversight and meet global financial standards.

Business Fortune is of the view that as Kuwait continues its regulatory push, authorities are expected to focus on improving business accountability and closing loopholes that could enable illicit financial activities.

 

FAQs

  1. Why has Kuwait tightened AML rules?

Kuwait has tightened AML rules to combat money laundering and terrorist financing risks and address concerns raised by the FATF.

  1. Why are jewellery businesses being monitored?

Jewellery businesses are monitored because precious metals and gemstones are valuable, easily transferable and may be misused to move illicit funds.

  1. What is the FATF grey list?

The FATF grey list includes countries that have strategic weaknesses in their systems for preventing money laundering and terrorist financing but are working with the organisation to improve.

  1. What suspicious activities must jewellery shops report?

Businesses must report activities such as unclear sources of funds, false identities, missing documents, unexplained transactions and attempts to hide ownership details.

  1. What steps has Kuwait taken against financial crimes?

Kuwait has introduced stricter regulations, increased inspections, penalised violations, restricted certain cash transactions and improved business transparency requirements.