MCI issues new rules with fines up to 8,000 dinars and license revocation

2026-03-16 - 19:26

The Ministry of Commerce and Industry has issued new rules and procedures outlining a matrix of violations, penalties, and regulatory measures for specific non-financial businesses and professions as part of efforts to combat money laundering and terrorist financing. Under the decision, companies that provide services to individuals listed on sanctions lists will face strict penalties. Such violations are classified as high-risk and carry a fine of 8,000 dinars, along with the suspension of the company’s activities for one year. The regulations also impose a fine of 5,000 dinars on establishments that fail to notify the Kuwait Financial Intelligence Unit within two working days when suspicious indicators appear in a transaction, reports Al-Rai daily. In such cases, the company may also be suspended from operating for one year, and the penalty could escalate to the withdrawal of its commercial license. According to the ministry, conducting buying and selling transactions using cash is considered a medium-severity violation. Offenders may face a fine of 3,000 dinars, potential closure of the establishment, referral to investigative authorities, and possible revocation of the commercial license. The decision introduces a classification system for violations based on their severity. Low-risk violations are considered limited in impact and unlikely to harm the country’s reputation, while medium-risk violations may cause moderate harm. High-risk violations are those that could affect Kuwait’s reputation at both the local and international levels. The ministry explained that low-risk violations may result in administrative or financial penalties, or both, with fines increasing in cases of repeated offenses. However, the fine for a single violation will not exceed 500,000 dinars. Among the violations listed is the submission of policies, procedures, or risk assessment studies that do not meet the requirements of the Anti-Money Laundering and Counter-Terrorism Financing Law and related ministerial decisions. Such violations may result in a written warning, an order to comply with specific corrective measures, and a fine of 200 dinars. Additionally, breaching obligations related to the ministry’s regulations, instructions, and circulars is classified as a low-risk violation, punishable by a written warning and a 200-dinar fine. Conducting transactions based on incomplete documentation is also considered a violation, carrying a written warning and a fine of 500 dinars.