Kuwait Country Summary

FATF Status

Kuwait is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies.

Compliance with FATF Recommendations

The latest Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Kuwait was undertaken in 2024. According to the follow-up Evaluation, Kuwaitwas deemed Compliant for 9 and Largely Compliant for 20 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective 0 of the Effectiveness ratings.

Kuwait has been actively addressing corruption in response to public dissatisfaction, with recent prosecutions of government officials and the establishment of the Anti-Corruption Authority, Nazaha. Despite these efforts, the country grapples with significant challenges, including human trafficking, a thriving counterfeit market, and cybercrime, all exacerbated by a lack of transparency and accountability in governance.

Kuwait's economy is predominantly driven by its oil sector, which accounts for over half of its GDP and more than 90% of government revenue, benefiting from high oil prices that averaged $97.1 in FY22/23. The nation is working towards economic diversification through its New Kuwait Vision 2040 plan, although challenges such as a lack of private sector incentives, a complicated bureaucracy, and regional competition hinder progress. Recent reforms, including the allowance for 100% foreign ownership in certain sectors and the removal of local agent requirements for foreign companies, aim to attract foreign investment and enhance the business environment, despite ongoing issues with legal enforcement and bureaucratic delays.