Kuwait’s Ministry of Commerce and Industry has issued Decision No. 16 of 2025, updating the country’s regulations on Ultimate Beneficial Ownership (UBO). This decision builds on Resolution 4/2023, which took effect on 1 April 2023, and introduced requirements for companies to maintain and submit UBO information.

UBO refers to the individuals or entities that ultimately own or control a company, partnership, trust, or other legal entity. Identifying UBOs is a critical component of Know Your Business (KYB) and Know Your Customer (KYC) procedures, especially for financial institutions like banks and investment firms, which are required to verify their clients’ UBOs.

A UBO is typically defined as anyone who holds at least 25% of a company’s capital, has 25% or more of the voting rights in the company’s general assembly, or benefits from at least 25% of the company’s capital. These individuals or entities are considered the true owners and decision-makers behind the company.

The UBO requirements apply to all entities registered or licensed in Kuwait, with exceptions for government-owned companies and entities regulated by the Kuwait Central Market Authority. Under the new amendments, the exceptions are expanded to include listed companies that meet specific disclosure requirements and investment entities under Kuwait’s Direct Investment Law (No. 116 of 2013). These entities must submit their UBO information within three months of obtaining their license.

The updated regulations also introduce tougher penalties for non-compliance, including fines ranging from KWD 1,000 to KWD 10,000. In the event of continued non-compliance, companies risk being delisted from the Commercial Register.