Kuwait: Central Bank Enforces Transparency in AML Penalties

The Central Bank of Kuwait has approved a methodology for imposing penalties in line with Article (15) of Kuwait Law No. 106/2013, concerning combating money laundering and terrorist financing.

There will be the publication of penalties imposed on supervised entities to ensure transparency and adherence to international standards set by the Financial Action Task Force (FATF). The Central Bank aims to make penalties “effective, proportionate, and deterrent,” and align them with the severity of violations. The penalties, including written warnings and financial sanctions, are published on the Central Bank’s official website to promote transparency and regulatory compliance.

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Kuwait: New Public Debt Law

Arab Times, 20 May 2025: The Undersecretary of the Ministry of Finance has introduced a new Public Debt Law, which focuses on enhancing financing and liquidity.

The law is designed to provide Kuwait with diversified financial resources both locally and internationally, supporting development projects and strengthening domestic financial markets. It authorises the Ministry of Finance to mandate the Central Bank or Kuwait Investment Authority to secure financing on its behalf, reflecting the State’s capacity to borrow responsibly.

The law raises the borrowing ceiling from KD10 billion to KD30 billion and extends the borrowing term from 10 to 50 years, introducing specific expenditure guidelines. These changes are expected to positively influence Kuwait’s credit rating by demonstrating fiscal discipline and effective management of development financing. The Public Debt Law is part of a broader strategy to engage confidently with global markets, minimise borrowing costs, and diversify the investor base. It also aims to develop a local debt market by establishing a reliable yield curve, serving as a benchmark for domestic investors.

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Kuwait: Health Ministry Sets Prices for Sets Medicines

Kuwait Times, 12 May 2025: Kuwait Ministerial Decision No 93/2025, has been issued approving new pricing for 69 medicines and pharmaceutical products in private pharmacies.

The decision follows recommendations made by the Drug Pricing Committee. These approved prices are for a wide range of therapeutic categories. These include medications for cancer, including leukemia, as well as treatments for diabetes, hypertension, high cholesterol, and cardiovascular diseases. It also covers anticoagulants, antidepressants, antiepileptics, antibiotics, antifungals, antivirals, asthma treatments, osteoporosis drugs, thyroid medications, dermatological preparations, Alzheimer’s and dementia treatments, obesity medications, and migraine relief drugs.

The new decision complements Kuwait Ministerial Decision No. 74/2023.

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Kuwait: Civil Service Commission Automates Job Status Amendment Procedures

Khaligyoun, 30 April 2025: The Kuwait Civil Service Commission has announced the automation of job status amendment procedures.

This initiative has been launched to simplify procedures and expedite transaction completion between the employee’s workplace and the relevant departments within the Commission. The automation process will begin with the submission of requests by the employee’s workplace through the system, followed by review and approval by the relevant Civil Service Commission department.

The automation of procedures are part of a broader initiative towards a “paperless Commission,” complementing existing systems for appointments, external transfers, experience calculation, job title changes, and end-of-service settlements.

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Kuwait: Changes to Criminal Law

Arab Times, 26 April 2025: The Kuwait Council of Ministers approved amendments to the Penal Code, originally enacted under Kuwait Law No. 16/1960.

The amendments have increased fines for manslaughter and unintentional injuries and introduced new articles which alter penalties under aggravating circumstances. A provision was also added to protect the financial system from debtors falsely claiming insolvency.

In addition, amendments to the Code of Criminal Procedure and Trials Kuwait Law No. 17/1960 found in Kuwait Decree-Law No. 62/2025 have included electronic notification of in-absentia judgments to expedite delivery and ensure convicts are informed, reducing litigation delays. Article 230 of Kuwait Law No. 17/1960 has been was amended to facilitate the collection of criminal fines, allowing the Public Prosecution to deduct fines from salaries or arrange instalment payments.

The Council has also approved amendments to Article 5 of Kuwait Law No. 71/2020 on Bankruptcy, reinstating arrest and detention for debtors who evade financial obligations and enhancing enforcement authority for financial disclosures.

A draft decree-law amending the Civil and Commercial Procedures Law ,Kuwait Decree-Law No. 38/1980, has been introduced, which will allow the Enforcement Department to notify a Credit Information Company of non-payment, impacting the debtor’s credit record.

The Public Authority for Combating Corruption (Nazaha) was reinforced through amendments to Kuwait Law No. 2/2016 On the Establishment of the Public Authority for Anti-Corruption and the Provisions Related to Financial Disclosure, broadening the definition of corruption and mandating electronic submission of financial disclosures.

Kuwait Ministerial Decision No. 194/2025 to have also been issued to regulate payment procedures for official documents, in order to combat money laundering and enhance transparency in the real estate market.

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Kuwait: Law Amended to Allow Salary Deductions for Unpaid Court Fines

Arab Times, 20 April 2025: Kuwait Decree-Law No. 62/2025 amended the Code of Procedures and Trials Law (Kuwait Law No. 17/1960), enabling salary deductions for unpaid court fines and revising objection periods for verdicts.

Kuwait Decree-Law No. 62/2025 has replaced Article 188 and 230 of Kuwait Law No. 17/1960 with new provisions, impacting the objection period for verdicts and the collection of unpaid fines.

Article 188 of Kuwait Law No. 17/1960 now specifies a one-week objection period for verdicts. In misdemeanor cases, this period begins from the date the convicted person is notified of the verdict issued in absentia. For felony cases, it starts from the date of the convicted person’s arrest, provided the judgment was not previously served in person. If the objection is not filed within this timeframe, the verdict may only be appealed if eligible before the Court of Appeals. Notifications can be sent via email or other modern communication methods, and if direct service is not possible, notices may be delivered to a relative or published in the official gazette.

Article 230 of Kuwait Law No. 17/19605 allows for the collection of unpaid fines through compulsory execution from the convict’s assets. The Public Prosecution can recover fines via monthly deductions not exceeding one-quarter of the convict’s salary, wage, national labour support, or pension. The convict may request to pay the fine in instalments or defer payment, with full payment required within five years.

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Bahrain: New Comprehensive Electronic Property Registration System

Al Bilad Press, 18 April 2025: Bahrain has introduced a digital property registration system, revolutionising the real estate sector with enhanced transparency and efficiency.

The electronic registration system allows users to submit applications and pay fees online, offering significant flexibility. It enables immediate property transfer on meeting requirements simplifying procedures while ensuring transparency in real estate operations.

The bureau has also developed an “Electronic Workflow System,” which is a platform that uses QR codes, barcodes, and scanning. It connects personal data and commercial records with government systems and uses Geographic Information Systems (GIS) to significantly reduce the time required for property transfers.

They have also introduced an internally developed Real Estate and Geographic Information System, which contains detailed data on over 300,000 properties across Bahrain. This system provides a historical record of property registrations dating back over a century and supports the production of precise research and geographic reports.

Among the new digital services launched is the “Ownership Statement,” which is automatically issued after property transfer fees are paid, with a download link sent to the registered phone number. This service allows users to complete certain transactions with other entities before the final document is issued and enables citizens to easily access property ownership data, download survey certificates, and locate properties via a QR code.

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Kuwait: Municipal Committee Considers Agricultural Land Amendments

Arab Times, 13 April 2025: Kuwait’s Municipal Council has considered proposed agricultural land amendments.

The Kuwait Municipal Council’s Technical Committee held its 22nd meeting, at which it considered amendments to agricultural land regulations.

The proposed amendments to the agricultural land regulations have been requested by the Minister of State for Municipal Affairs. They include changes to building ratios in areas such as Wafra, Abdally, and Sulaibiya. The amendments propose limiting construction to 10% of the plot area, and there would be specific guidelines for residential buildings, family rest houses, and workers’ residences. Additional regulations would cover building reserves, maximum heights for structures, and setback requirements.

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Bahrain: Commercial Law Amendments on Bounced Cheques

Nabad, 14 April 2025: Bahrain’s Shura Council has proposed amendments to the Commercial Law (Bahrain Decree-Law No. 7/1987) to improve trust in commercial transactions and regulate cheque issuing.

The amendments, aim make the processing of cheques easier and facilitate their circulation, while safeguarding the rights of cheque holders or beneficiaries.

They will allow partial cheque payments where cheques bounce. Cheque holders will be able to collect part of the cheque amount if the full balance is unavailable, and will also have the option to re-present the cheque for the remaining amount. Banks will be required to honour cheques fully or partially when funds are available and will not be able to refuse payment if requested by the account holder or cheque bearer.

The amendments would also require banks to withhold cheque payments entirely or partially where they have received objections involving loss or damage. The Bahraini Central Bank will be authorised to issue decisions on alternative methods for proving partial payments, aside from cheque endorsements, and to regulate conditions and procedures for implementing partial cheque payments.

Cheque holders will be able to seek recourse against issuers and endorsers if the cheque is not fully paid on timely presentation, provided non-payment is documented by protest or other legal means. Cheques marked as having insufficient funds or a partial payment will be considered enforceable under civil and commercial execution laws, and the Minister of Justice will be authorised to regulate execution rules and procedures following approval from the Supreme Judicial Council.

The amendments will also criminalise the issuing of blank cheques for use as credit or guarantee instruments, and will impose fines ranging from 200 to 2,000 dinars for issuing these types cheques. Individuals who fill in and present blank cheques for payment will face fines of at least 10% of the recorded amount, up to twice that amount, with a minimum fine of 500 dinars and a maximum of 10,000 dinars.

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Bahrain: National Assembly Considers Extending Maternity Leave to 70 Days

Al Bilad Press, 9 April 2025: The Bahraini National Assembly has been considering a proposal to extend maternity leave for female government employees to 70 days.

The proposal aligned with the United Nations’ Sustainable Development Goals, particularly Goal 5 on gender equality.

However, the proposal also raised concerns about potential disruptions to operational schedules in government agencies, especially in critical roles, which may lead to a need to temporary restructure or hiring substitutes. There have also been concerns about increased public expenditure to cover salaries during the extended leave.

The proposed 70-day leave aligns with practices in Saudi Arabia and Jordan, while other countries such as the UAE, France, and Sweden offer longer maternity leave periods. Egypt is currently considering increasing its maternity leave to 90 days.

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