Ministry takes action to fine businesses non-adherent with beneficial owner disclosure requirements
Article Title: Kuwait Cracks Down on Businesses Hiding True Owners: Here's What You Need to Know
In a zealous move to foster financial transparency and combat money laundering, Kuwait's Ministry of Commerce and Industry (MOCI) is ramping up efforts to enforce the disclosure of beneficial ownership. This initiative forms part of a broader international strategy aimed at improving financial integrity within the corporate sector.
The MOCI is working hand in hand with financial institutions to audit and verify the data of actual beneficiaries, ensuring an accurate and comprehensive database [1][3]. Approximately 90% of businesses in Kuwait have already complied with the beneficial ownership disclosure requirements, largely due to successful awareness campaigns and a commitment to regulatory compliance [3].
Fines for Neglecting to Disclose Beneficial Ownership
Businesses refusing to disclose their beneficial ownership information face increasing monetary penalties. As per recent directives and Ministerial Resolution No. 16 of 2025, fines start at KD 1,000 and can escalate up to KD 10,000 for persistent non-compliance [1][2]. These fines are progressive, meaning repeat offenders or those delaying compliance face harsher penalties.
Beyond administrative fines, companies and individuals involved in more serious violations related to money laundering can face severe consequences. These may include imprisonment, asset confiscation, and fines up to 100% of the value of laundered assets [4].
Target and Compliance Objectives
The MOCI's ultimate goal is to achieve 60% compliance by June. Awareness campaigns and strict enforcement mechanisms are instrumental in driving high compliance rates [2][3]. The ministry continues to monitor and penalize non-compliant businesses to ensure the effectiveness of these transparency measures.
Who is Affected by These Rules?
All entities holding a commercial register—whether active, suspended, or expired—must comply with the beneficial ownership disclosure, as long as the register is still valid. This includes unlisted joint-stock companies, sole proprietorships, partnerships, with some exemptions for publicly listed companies and those entirely owned by governments [2].
Efforts are currently focused on joint-stock companies that have yet to disclose their financial ownership data [2]. If a company operates multiple branches under a single commercial register, it only needs to register the beneficial owner once at the main register level, with no separate registration required for individual branches [2].
[1] Al-Rai - Kuwait to fine firms over failure to disclose beneficial owner details[2] ArabTimes - Companies to face fines for failing to reveal their real owners[3] Kuwait Times - Kuwait over 90% compliant with Beneficial Ownership Systems[4] Capital Intelligence (MENA) - Anti-Money Laundering & Counter-Terrorism Financing
- In Kuwait, businesses that neglect to disclose their beneficial ownership information risk being fined starting from KD 1,000, with persistent non-compliance incurring fines of up to KD 10,000.
- The Ministry of Commerce and Industry (MOCI) in Kuwait aims to achieve 60% compliance with beneficial ownership disclosure by June, and this initiative includes all entities holding a commercial register, such as joint-stock companies, sole proprietorships, partnerships, with some exemptions.
- Companies in Kuwait that operate multiple branches under a single commercial register are required to register the beneficial owner only at the main register level, with no separate registration needed for individual branches.
