Kuwait: Justice Ministry Announces Full Digital Services Rollout

Kuwait Times, 6 August 2025: Kuwait’s Ministry of Justice has revealed plans for a comprehensive digitisation of its legal services, with legislation for the transition in its final stages.

The digital transformation programme will be implemented in three phases: Electronic filing and registration of cases, including fee payments, streamlined court procedures and digital implementation of court rulings.

The new judicial complex, spanning 400,000 square metres and featuring 70 courtrooms, has already received recognition.

Current operational challenges at the facility include: Limited elevator capacity, Parking constraints, Service processing delays and Underdeveloped existing digital services.

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Kuwait: Sets Stricter Rules for Co-operative Societies

Al Qabas, 3 August 2025: The Ministry of Social Affairs in Kuwait has finalised amendments to the Co-operative Societies (Kuwait Law No. 24/1979), introducing significant changes to board composition and membership requirements.

Under the new amendments, co-operative society boards will consist of nine members, with four appointed by government ministries and five elected by the general assembly. The changes also establish stricter eligibility criteria for board membership.

Key requirements for board candidates include: Minimum age of 30 years, three years of society membership, Property ownership or civil ID in the nomination area, a University degree, a clean criminal record, and completion of ministry-approved training in cooperative work.

The revised law grants the Minister of Social Affairs the authority to dissolve boards or dismiss members for serious financial or administrative violations. In such cases, the minister can appoint a temporary director for up to two months until new elections are held.

Board members found guilty of violations will be barred from running for two consecutive terms, extending to three terms for criminal offences. The law also introduces penalties, including up to two years imprisonment and fines up to 2,000 dinars for various infractions.

The amendments require boards to follow employment policies aligned with the ministry’s Kuwaitisation directives. Each society must appoint a general manager, who cannot be a board member, subject to conditions set by the Social Affairs Minister.

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Kuwait: New Building Regulations Apply Only to Free Zone Service Sector

Kuwait Times, 26 July 2025: Kuwait Municipality has confirmed that recent amendments to building specifications apply exclusively to the free zone’s service sector (16), and not to the broader Shuwaikh and Al-Rai areas.

Municipality Director clarified that the new regulations maintain the existing 150 percent building area allowance for hotels within service plots, while introducing the option for multiple basement levels.

The updated specifications establish specific requirements for sector (16):

• Maximum building coverage of 130 percent across three floors
• Minimum shop and showroom sizes of 100 square metres
• Office spaces no smaller than 150 square metres on ground and mezzanine floors
• Increased restaurant allocation from 5 to 10 percent
• Mandatory on-site parking provision

They also noted that the former free zone, now under the Public Authority for Industry’s jurisdiction, permits various commercial activities, including:

• Administrative offices
• Retail shops
• Banking services
• Health clubs
• Hotels
• Warehousing facilities

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Kuwait: MoUs on Money Laundering Signed

Kuwait Times, 20 July 2025: The Kuwait Interior Ministry Department for combatting money laundering and terrorist financing and the customs office have signed a memorandum of understanding to enhance cooperation on the fight against financial crimes.

The two departments will increase mutual operation and sharing of information in line with international standards set by the UN Financial Action Task Force (FATF). The MOU also aims to intensify regulatory procedures to support the national system for reducing financial crime. In addition, the Kuwait Capital Markets Authority (CMA) and the Financial Intelligence Unit (FIU) have also signed a separate MOU on cooperation and information exchange on money laundering. This will impact the scope of information the FIU and CMA can provide to each other.

Amendments to Kuwait Law No. 106/2013 (the money laundering law) in June 2025 now allow the Kuwaiti Cabinet to issue decisions to implement resolutions passed by the UN Security Council on financing terrorism and freezing assets, and to impose hefty fines on violators. In a report in June 2025, FATF had stated gaps in the legal system in Kuwait did make it difficult to free assets in these situations.

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Kuwait: Launches New Phase of Capital Market Reforms

Kuwait Times, 12 July 2025: Kuwait’s Capital Markets Authority (CMA) has implemented the second part of phase three of its Capital Market System Development Program, introducing significant changes to the country’s financial infrastructure.

Under Kuwait Decision No. 101/2025, Kuwait Clearing Company has become the country’s first licensed central broker, marking a key milestone in implementing Kuwait Law No. 7/2010.

Ten brokerage firms have been upgraded to “Qualified Broker” status, expanding their capacity to offer financial services. The CMA has also developed and tested new technical systems for bonds, sukuk, and ETF indices trading.

The reforms include the introduction of sub-account numbers within consolidated accounts for both investment and electronic portfolios, enhancing market supervision capabilities at Boursa Kuwait.

The authority has completed preparations for cash settlements through the Central Bank of Kuwait system and settlement banks, while establishing a financial collateral chain.

These changes follow Kuwait Decision No. 101/2025, which required the CMA to issue new licenses and implement regulatory adjustments. Draft amendments to the executive regulations of Kuwait Law No. 7/2010 have been prepared to accommodate new financial products in the market.

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Kuwait: Systematic Risk Assessments for Money Laundering in Financial Institutions

Al Rai Media, 7 July 2025: The Kuwaiti regulatory authorities, represented by the Central Bank of Kuwait, the Capital Markets Authority, and the Insurance Regulatory Unit, have developed guidelines for assessing business risks.

Issued as a directive, it requires all supervised financial and banking institutions to systematically evaluate risks related to money laundering, terrorist financing, and the proliferation of weapons of mass destruction based on their activities, customer base, monitoring services, and geographic exposure.

The guideline is divided into eight key sections, obliging institutions to periodically assess business risks and initiate immediate reviews in response to significant developments. The aim is to empower institutions to make informed decisions regarding risk acceptance and adopt proactive measures to prevent financial crimes.

Affected parties, primarily financial and banking institutions, must regularly follow a systematic risk assessment process. This includes the evaluation of inherent business risks, categorising them into various levels such as high, medium-high, or medium-low, and developing strategies for resource allocation and risk mitigation which are aligned with guidelines from the Financial Action Task Force (FATF).

The guideline suggests effective customer due diligence measures, record retention practices to meet regulatory obligations, and internal risk management controls. Institutions must set policies on client acceptance, conduct risk evaluations, operate compliance frameworks, independently test controls, monitor transactions, and deploy stringent staff training programs.

Key risk categories identified include structural risks arising from ownership and governance complexity, customer risks related to client types and transaction patterns, product and service transaction risks, service delivery channel risks, geographical risks, and technology-related risks.

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Kuwait: Executive Regulations for Multinational Entity Tax

Mubasher, 29 June 2025: The Kuwaiti Ministry of Finance has issued Kuwait Ministerial Decree No. 55/2025 on the implementing of Kuwait Decree-Law No. 157/2024, on the tax of Multinational Entities (MNEs).

This covers the introduction of a Domestic Minimum Top-up Tax (DMTT), and aligns with OECD requirements under the Global Minimum Tax Pillar Two project. The new regulations clarify the provisions of the law, outlining procedures and mechanisms for implementation.

Preliminary estimates suggested the tax could generate annual revenues of approximately 250 million Kuwaiti dinars.

The Ministry plans to conduct several educational workshops to explain the details of the executive regulations, with dates to be announced in due course.

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