Briefing

HFW Kuwait law update – April 2026

Kuwait has recently introduced a series of legislative and regulatory measures across multiple sectors, reflecting efforts to strengthen market oversight, enhance consumer protection, and address evolving economic and compliance challenges. These developments span digital commerce, anti-money laundering and counter-terrorism financing (AML/CFT), trade practices, and the regulation of specific goods and services.

Kuwait announces ban on cash transactions exceeding 10 Kuwaiti Dinars in certain sectors.

The Ministry of Commerce and Industry (MOCI) announced on 6 April 2026 the issuance of Ministerial Decision No. 32 of 2026 regarding the prohibition of cash transactions for companies in certain activities.
Cash transactions exceeding 10 Kuwaiti Dinars are prohibited and, require businesses to use banking channels or approved e-payment methods.
The Decision applies to certain specific businesses, being:
- Health institutes; salons for men, women and children; sports clubs; pest and rodent control services; and activities of import, export and storage of public health pesticides.
Violators face penalties including closure of the establishment and referral for investigation.
The Decision is effective from 6 April 2026.

Kuwait issues Ministerial Decision No. (30) of 2026 to provide support for essential goods amid disruptions.

MOCIwill support local companies by shouldering additional import costs for essential goods to maintain supply amid disruptions to sea, land, or air routes. The decision took effect on 5 April 2026 and remains in force until 30 June 2026.

Key points:

Applies to selected essential goods (e.g. rice, canned goods, bottled water), with scope for extension within budget limits.

Eligibility:

Licensed importer with relevant prior activity.
Cost increases must result from supply disruptions beyond the company’s control.
Undertaking not to increase local prices during the support period.
Submission of supporting documentation via the Ministry’s portal.

The measure aims to ensure price stability and continued supply of essential goods under exceptional conditions in the market.

Kuwait issues Ministerial Decision No. 25 of 2026 on AML/CFT violations for DNFBPs.

MOCI has issued Ministerial Decision No. 25 of 2026, introducing a detailed matrix of violations, penalties, and enforcement measures applicable to designated non-financial businesses and professions (DNFBPs) under Kuwait’s AML/CFT framework. The decision was published in the Official Gazette on 15 March 2026 and took immediate effect.

Violations are classified based on the provisions of Law No. (106) of 2013 concerning combating money laundering and the financing of terrorism. Financial fines are progressively increased with the repetition of the violation, provided that the total value of the financial fines does not exceed 500,000 Kuwaiti Dinars per violation.

Low-risk violations (minor impact):
– Examples include non-compliant internal policies or risk assessments.
– Penalties: written warning, corrective measures, and fines ranging from KWD 200-500.
Medium-risk violations (moderate impact):
– Examples include use of cash in transactions, failure to appoint a qualified compliance officer, or failure to implement required electronic customer data and transactions systems.
– Penalties: fines ranging from KWD 300-3,000, suspension of commercial licence until rectified, and possible escalation for repeat breaches.
High-risk violations (serious impact):
– Examples include failure to implement sanctions screening mechanisms or serious AML/CFT control deficiencies.
– Penalties: fines ranging from KWD 4,000-8,000, suspension of activities (up to six months), and potential licence revocation.

Additional enforcement measures:

Failure to retain financial records for at least five years: KWD 1,000 fine and suspension of license for three months, with possible license withdrawal in cases of repeated violations

The decision introduces a risk-based enforcement regime, enhancing compliance obligations and strengthening oversight of DNFBPs in line with Kuwait’s AML/CFT framework.

Kuwait Digital Commerce Law (Decree-Law No. 10/2026).

Establishes a regulatory framework for e-commerce and enhances consumer protection in Kuwait.
Published on March 1, 2026; effective one month after issuance of the Executive Regulations (to follow within one year of the law).
Applies to all digital commercial activities conducted through websites, platforms, or apps, including sales, services, and advertising.

MOCI Oversight of Digital Commerce

Businesses must register with MOCI before engaging in digital commerce activities.
MOCI regulates and supervises the sector, develops national policy, and issues rules covering platforms, electronic auctions, and applicable penalties.

Obligations of product or service providers

Providers must register their digital business, specify their place of operation, and disclose key details on their digital platforms, including name, contact information, contract terms, and delivery/return policies.
They must issue electronic invoices in Arabic upon completion of transactions.
They must notify consumers of delays, allow termination and refunds where performance is materially affected, and provide effective complaint-handling mechanisms.

Digital advertising/promotion

Service providers must ensure their digital advertising and promotional activities comply with the following obligations:

Include on digital advertisements the provider’s name, product/service price, accurate description, and contact details (or link to official social media account).
Avoid false, misleading, or unlawful content and the use of counterfeit trademarks.
Clearly disclose terms of promotional offers.
Retain influencer agreements and related data for at least five years; provide to Ministry on request.
Ensure influencer payments follow AML rules and banking regulations.
Avoid misleading or fraudulent campaigns using influencers.

Enforcement, penalties & overall impact

Establishes two committees: one for reviewing violations (penalties, blocking digital stores, referrals to public prosecution) and one for resolving consumer disputes.
Violations can lead to imprisonment (up to 1 year), fines (KWD 1,000–10,000), or both, with stricter penalties for repeat offences.
Strengthens accountability in digital commerce, improves consumer rights, regulates advertising and influencer practices, and supports sustainable growth of Kuwait’s e-commerce sector.

Kuwait bans online sale of tobacco products under Ministerial Decision No. 27 of 2026.

MOCI has prohibited the sale of tobacco products, including cigarettes, electronic cigarettes, and related accessories, through delivery platforms and other digital channels. The decision took effect on 15 March 2026 as part of broader efforts to regulate tobacco trade and strengthen compliance.

Key points:

Applies to all digital and delivery-based sales channels.
Aims to curb unregulated online sales and reinforce existing commercial and consumer protection rules.
Repeals conflicting prior provisions.