Kuwait has issued Decree-Law No. 57 of 2026, formally completing domestic implementation of the OECD Common Reporting Standard (CRS) and the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (CRS MCAA), paving the way for automatic financial data exchange from 2027.
Kuwait published Decree-Law No. 57 of 2026 in Official Gazette Kuwait Al-Youm, Issue No. 1787, on 19 April 2026, finalising its domestic legal framework for the OECD Common Reporting Standard (CRS) and the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (CRS MCAA), which Kuwait signed in 2016.
The decree confirms Kuwait’s accession to both the CRS MCAA and the Addendum to the Common Reporting Standard on Due Diligence and Reporting for Financial Account Information. Both agreements were originally signed in Paris on 19 August 2016, but required domestic ratification to take full legal effect.
Article One of the decree formally approves accession to the MCAA and the CRS Addendum. Article Two assigns relevant ministers, each within their jurisdiction, to implement the decree, which takes effect from its publication date. The explanatory memorandum contains a typographical error referring to “2024” instead of 2026, which does not affect the decree’s validity.
The legal framework establishes comprehensive automatic exchange of financial account information with partner jurisdictions. For individuals, reportable data includes name, address, tax identification number (TIN), date of birth, and place of birth. For entities, it includes name, address, TIN, and details of controlling persons.
Financial account information to be exchanged includes account number, financial institution name, year-end balance or value, total interest, total dividends, total proceeds from sale or redemption of financial assets, and other payments credited to the account.
The CRS Addendum sets detailed due diligence requirements for financial institutions. These include electronic searches of internal records for foreign tax indicators such as addresses, TINs, and standing instructions. High-value accounts require review by relationship managers based on actual knowledge of reportable status. New accounts must include self-certification of tax residency.
Although signed in 2016, the agreements will now take effect domestically, with the first automatic exchange of information expected in 2027, covering data for the 2026 reporting year. Kuwait will implement the updated 2023 CRS framework, which includes expanded reporting obligations such as certain digital assets and cryptocurrencies, and enhanced classification of account holders (e.g., owner, beneficiary, controlling person).
The implementation will require financial institutions to upgrade compliance systems, enhance due diligence procedures, and strengthen reporting mechanisms. It also requires customers to provide tax residency declarations more frequently.
The decree is expected to significantly enhance Kuwait’s alignment with international tax transparency standards, support efforts to combat tax evasion, and strengthen its position in the global financial system, while reducing the risk of being listed in non-cooperative jurisdictions.
