New law in Kuwait to counter terrorism and financial crimes
Kuwait’s Cabinet has approved a new draft law aimed at strengthening the country’s legal framework for combating terrorism and financial crimes, in line with United Nations Security Council (UNSC) resolutions.
The legislation, endorsed during a Cabinet meeting following recommendations from the Ministerial Legal Affairs Committee, allows authorities to freeze assets, block financial transactions, and designate individuals or entities suspected of terrorism or the proliferation of weapons of mass destruction.
The draft will now be submitted to His Highness the Amir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah for final ratification.
Under the law, decisions based on UNSC directives will be issued by the Cabinet, following recommendations from the Minister of Foreign Affairs, with powers being delegated to individual ministers, who can establish special committees to oversee enforcement.
The regulations will also ensure due process, including mechanisms for appeals and provisions allowing limited access to frozen funds for basic living expenses.
Violations will attract financial penalties ranging from KD 10,000 ($ 32,644) to KD 500,000 ($1.6 million), in addition to other sanctions under existing financial laws. Current counterterrorism laws will remain in effect unless directly overruled by the new provisions.
According to the official explanatory note, the law is designed to provide the Cabinet with a clear legal framework to meet Kuwait’s international obligations while preserving constitutional rights and protecting those acting in good faith.
The move is seen as a step toward reinforcing Kuwait’s compliance with global counterterrorism financing standards, particularly those monitored by the Financial Action Task Force (FATF) and the United Nations.
In 2021, the United Arab Emirates established the Executive Office of Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) to spearhead a cohesive government strategy against financial crime, in close collaboration with regional and global partners, including the United States.
Since then, the UAE has significantly bolstered enforcement and regulatory frameworks, recording fines for AML/CTF violations from $20.6 million in early 2022 to $ 67.8 million in the first ten months of 2023, a more than threefold increase.
The UAE confiscated roughly $ 353.9 million in illicit assets in 2023, with the courts prosecuting 583 money laundering cases, achieving a high conviction rate of 92.1%.
This story is written and edited by the Global South World team, you can contact us here.
