KUWAIT CITY, Dec 14: The official spokesperson for the Ministry of Commerce and Industry Abdullah Al-Harz says the decision to disclose the actual beneficiary in economic and financial transactions is a major requirement for renewing and issuing commercial licenses. Financial penalties for failing to register the actual beneficiary could reach up to KD 500,000, under the provisions of the Anti-Money Laundering Law No. 106/2013. In a press statement, Al-Harz revealed that Law No. 106/2013 stipulates penalties for three sectors subject to money laundering risks - jewelry and gold, real estate, and banking activities. He stressed that these sectors must disclose the actual beneficiary, or face penalties for non-compliance. Al-Harz explained that the ministry imposed initial penalties of KD 500 and sent notifications of the non-registration of beneficiaries for activities subject to money laundering regulations. In addition, other activities will not be renewed unless the actual beneficiary is registered, and no new license will be issued without this registration.

The actual beneficiary could be the company manager, all partners, or a consulting entity operating under a power of attorney outside the company’s records. This does not prevent the registration of the actual beneficiary, even if they are not listed in the ministry’s official records. A single commercial license can register more than one actual beneficiary and can also cancel and replace the current beneficiary as needed. Disclosing the actual beneficiary is necessary for developing the economy, improving the business environment, and enhancing Kuwait’s ranking in global and international organizations regarding the fight against money laundering.

Al-Harz revealed that the Ministry of Commerce and Industry began announcing the actual beneficiary in 2023 and launched a six-month campaign during the current year to encourage business owners and commercial projects to disclose the actual beneficiary. He stressed the importance of this decision for promoting transparency in economic transactions, ensuring the implementation of necessary measures and legal procedures, and providing all relevant information and data to regulatory bodies and supervisory authorities. Al-Harz highlighted that the ministerial resolution No. 4/2023 organized the process for determining the actual beneficiary and the procedures for registering their identity, adding that the decision also mandates companies and commercial institutions to identify the actual beneficiary before establishing a company or renewing a license.

By Marwa Al-Bahrawi

Al-Seyassah/Arab Times Staff