Title: Press Release: Mechanism Adopted by the Capital Markets Authority Regarding the Imposition of Measures and Penalties on Licensed Person in Violation of Anti-Money Laundering and Combating Financing of Terrorism

Kuwait, 5 April 2025 - In line with the Capital Markets Authority’s (CMA) ongoing efforts to implement the recommendations arising from the current mutual evaluation process conducted by the Financial Action Task Force (FATF) on the State of Kuwait, with the aim of establishing proportionate and deterrent enforcement policies for the entities under its supervision in cases of non-compliance with Anti-Money Laundering and Combating Financing of Terrorism, particularly  the provisions of Module Sixteen (Anti-Money Laundering and Combating Financing of Terrorism) of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments, the CMA has approved the mechanism that will be followed in imposing the measures and penalties on non-compliant entities.

This mechanism is consistent with the provisions of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments, and Law No. (106) of 2013 regarding Anti-Money Laundering and Combating Financing of Terrorism and its Bylaws. The CMA affirms its full commitment to enforcing  these policies in a transparent, fair, and consistent manner.

The approved mechanism encompasses a broad scope of enforcement powers  as outlined in  Article (15) of Anti-Money Laundering and Combating Financing of Terrorism Law, allowing the CMA to impose a range of measures and financial penalties  on all entities under its supervision in the event of violations, including  persons associated with these entities.

The CMA confirms that the imposed  measures and penalties will be applied consistently .  Appropriate penalties will be determined based on in the provisions of Article (15), taking into account various factors, including but not limited to, the nature and severity of the violation, its impact, the frequency of recurrence, and prior  supervisory actions taken against the violating entities.

In conclusion, the CMA reaffirms its commitment to its supervisory role in the area of Anti-Money Laundering and Combating Financing of Terrorism, with the objective of addressing weaknesses in the operations, procedures, systems, or internal controls of the entities subject to its supervision. These efforts underscore the pivotal role Kuwait’s regulatory authorities in this domain and contribute to achieving the highest levels of compliance with all the recommendations outlined in the FATF Mutual Evaluation Report of the State of Kuwait.