By admin 
KUWAIT CITY, Nov 17: The Ministry of Trade and Industry is considering issuing a ministerial decision to broaden the ban on cash transactions in specific high-value sectors to combat money laundering and increase economic transparency.
Sources revealed that the proposed regulation bans cash payments in the trade of jewellery, gold, watches and other precious metals. Payments for these goods would be limited to bank card withdrawals and electronic transactions, eliminating cash transactions for buying, selling or brokering these markets.
While it remains unclear whether a minimum threshold for cash transactions will be introduced, the anticipated decision is expected to apply universally to all transactions regardless of value, in line with previous regulatory efforts.
This initiative is in line with the ministry’s broader strategy, which includes working with the Central Bank of Kuwait to reduce dependence on cash and transition financial transactions to the formal banking system. The emphasis is particularly on activities that are vulnerable to money laundering risks.
The proposed ban on cash is also in line with the recommendations of the Financial Action Task Force (FATF), which emphasizes the importance of focusing on beneficial ownership and implementing robust anti-money laundering and anti-financing measures of terrorism.
According to sources, expanding restrictions on cash transactions will formalize economic activities and improve authorities’ ability to track cash flows from origin to destination. This move is further supported by a recommendation from the Kuwait Gold and Jewelry Traders Union, citing the high value of trade in these markets, which requires better regulatory oversight.
The FATF’s latest report on Kuwait identifies sectors such as stock exchange companies, real estate, gold and precious metals, gemstones and virtual assets as medium to high risk areas. This underlines the need to limit their transactions to the banking system to reduce financial crimes.
Activities for which cash transactions are currently prohibited:
Sale of real estate
Temporary grants
Car brokerage (auctions)
Sales of new and used cars (wholesale and retail) Domestic employment agencies
Pharmacy purchases over KD 10