ARABIAN TIMES NEWS NETWORK
Kuwait has unveiled a comprehensive regulatory framework for the gold, jewellery, and precious metals sector, introducing stricter compliance measures aimed at enhancing transparency, preventing money laundering, and strengthening financial oversight across the industry. The new regulations, issued by the Anti-Money Laundering and Counter-Terrorism Financing Department at the Ministry of Commerce and Industry, require all traders and businesses dealing in gold and precious metals to adhere to a series of mandatory documentation and reporting procedures.
A key feature of the framework is the requirement that all transactions between traders be supported by official invoices. Businesses must also record the identities of both buyers and sellers involved in precious metals transactions, ensuring a clear audit trail for every deal. For transactions exceeding KD 3,000, traders will be required to retain copies of customers’ civil identification cards or passports as part of enhanced customer due diligence measures. Authorities say the move is intended to improve monitoring of high-value transactions and prevent the misuse of the sector for illicit financial activities.
The ministry has also mandated a complete shift from paper-based recordkeeping to digital systems. Traders must maintain electronic records of daily sales and annual inventories, allowing regulators to monitor business activities more effectively and improving overall operational transparency. In one of the most significant changes, cash transactions have been prohibited in the gold and jewellery sector. Payments must now be made exclusively through approved electronic channels, including KNET, Links, Wamd, and Apple Pay.
Officials believe the transition to digital payments will reduce financial risks and make transactions easier to trace. The regulations further require businesses to submit reports of suspicious transactions through the goAML platform within 48 hours. Failure to comply could result in fines of up to KD 5,000. Authorities have also instructed traders to exercise heightened scrutiny when dealing with politically exposed persons and customers from jurisdictions considered high-risk.
Additionally, the framework introduces strengthened Know Your Customer (KYC) requirements. Traders must collect detailed information about clients, including their occupation, the purpose of the transaction, and the source of funds being used. Industry observers say the reforms represent a major step toward professionalizing Kuwait’s gold and jewellery market. By promoting transparency, reducing informal trading practices, and ensuring stronger compliance with international anti-money laundering standards, the new regulations are expected to enhance confidence in the sector and safeguard its long-term integrity.
