Kuwait AML Obligations for Accountants: Law No. 106 of 2013

Kuwait's main anti-money laundering (AML) statute is Law No. (106) of 2013 on Anti-Money Laundering and Combating the Financing of Terrorism, which replaced Law No. 35 of 2002. It covers accountants in a defined set of circumstances. This guide sets out what the Law says on coverage, customer due diligence, reporting, record keeping and penalties, and is open about what we could not confirm, including a recent amendment. It is general information, not legal advice.

When accountants are covered

Article 1 of the Law defines designated non-financial businesses and professions (DNFBPs). They include real estate agents, dealers in precious metals and stones for certain cash transactions, and company and trust service providers. Accountants are DNFBPs only when they prepare, execute or conduct customer transactions involving real estate, managing customer funds, establishing or managing legal persons, or buying and selling legal persons. Auditors are not named in article 1 of the text we read, which cites a separate decree law on auditing in its preamble.

A practice should therefore map its services against that list. The same article defines supervisory authorities as bodies that ensure compliance, including the Central Bank of Kuwait, the Capital Market Authority and the Ministry of Commerce and Industry, plus any others designated by the executive regulation. We did not find which of them supervises accountants.

Customer due diligence

Article 5 bars institutions from opening or maintaining accounts of unknown identity or in fictitious names. It requires them to identify and verify the customer and the beneficial owner, understand the purpose and nature of the relationship, monitor the relationship and its transactions, and understand the customer's ownership and control structure. Due diligence is due before or during account opening, on suspicion, and when identification data is doubtful. If it cannot be completed, the institution must refrain from opening the account, starting the relationship or carrying out the transaction, or end the relationship, and should consider filing a report. Enhanced due diligence applies to higher-risk cases and to complex or unusual transactions. For the general method, see our guide to KYC and customer due diligence in accountancy practices, and for the ownership checks our guide to ultimate beneficial ownership.

Reporting and tipping off

Under article 12, reports go to the Kuwait Financial Intelligence Unit "without delay" for any transaction or attempted transaction, whatever its value, where there is suspicion or reasonable grounds for suspicion. Article 12(2) exempts attorneys, independent legal professionals and accountants where the information is covered by professional secrecy. We have not seen an official explanation of how far that exemption extends for an accountant, so take advice before relying on it.

Article 13 bars institutions, directors and employees from telling a customer or anyone else that a report has been filed, with exceptions for internal communications and disclosures to lawyers, competent authorities and the public prosecution. A good-faith report to the Unit carries no liability for breaching disclosure restrictions. Our guide to suspicious activity reports and tipping off is UK-focused but explains the practical steps.

Record keeping

Article 11 sets a five-year minimum for several categories: due diligence records and business correspondence from the end of the relationship, transaction records from the transaction, copies of reports to the Unit from filing, and risk assessments from when they were carried out or updated. A competent authority may require longer retention in specific cases.

Penalties

The Law sets out a range of penalties in Kuwaiti dinars (KD):

• Failing to report, making false statements or tipping off (article 35): up to three years' imprisonment, a fine of KD 5,000 to 500,000, or both, and for legal persons a fine of KD 5,000 to 1,000,000.
• Violations by institutions or DNFBPs of articles 5, 9, 10 or 11 (article 33): a fine of KD 5,000 to 500,000 per violation.
• Supervisory measures under article 15: fines of up to KD 500,000 per violation, alongside warnings, orders and licence action.
• Money laundering by natural persons (article 28): up to 10 years' imprisonment and a fine linked to the value of the funds.

A recent amendment

A Zawya report says Decree Law No. (76) of 2025 amends the 2013 Law. It replaces article 25, so that the Council of Ministers can issue decisions implementing United Nations Security Council resolutions on terrorism, its financing and weapons proliferation, effective immediately. It adds article 33 bis, which sets a fine of KD 10,000 to 500,000 per violation of such a decision. The report does not describe other changes, so we cannot say what else was amended.

What we could not confirm

• The current consolidated text. The copy we read is the 2013 original, and we have not seen the executive regulation or other amendments.
• Which authority supervises accountants, and whether an accountant-specific instruction exists.
• Whether auditors are covered by any other provision.
• The exact scope of the professional-secrecy exemption in article 12(2).

Suggested next steps

These are our suggestions, not requirements. List your services and mark which ones fall within the DNFBP definition. Ask the Ministry of Commerce and Industry or a Kuwaiti lawyer which authority supervises your practice. Write down how staff escalate a suspicion. For team training, see our CPD courses.

Frequently asked questions

Are accountants in Kuwait covered by AML law?

Under article 1 of Law No. 106 of 2013, accountants are DNFBPs when they prepare, execute or conduct customer transactions in the listed areas, such as managing customer funds or forming legal persons.

How quickly must a suspicion be reported?

Without delay, under article 12, whatever the value of the transaction.

How long must records be kept?

At least five years under article 11, with longer periods possible if a competent authority requires them.