Kuwait mandates non-cash payment methods for all gold jewellery transactions, with legal penalties for violators.
KUWAIT CITY: Kuwait’s Ministry of Commerce and Industry has officially banned the use of cash in gold jewellery transactions across the country. The directive, issued by Minister Khalifa Al-Ajeel on Sunday, requires all licensed jewellery dealers to adopt non-cash payment methods approved by the Central Bank of Kuwait.
The new policy applies to both the purchase and sale of gold and jewellery, effectively mandating electronic transactions for all retail and wholesale operations in the sector. The move is aimed at enhancing financial transparency and aligning with the country’s broader anti-money laundering regulations and digital payment strategies.
According to the ministry, failure to comply will result in strict legal consequences, including possible closure of the violating outlet and referral to public prosecution. The decision comes as Gulf nations step up efforts to modernise financial practices and introduce stricter controls on high-value commodities.
Jewellery dealers must now ensure full compliance by transitioning to approved banking systems and digital platforms. The ministry is also expected to conduct routine inspections to ensure adherence to the directive.
The decision is part of a wider campaign to encourage transparency and reduce the use of untraceable funds in sectors historically vulnerable to financial crimes. Kuwait joins a growing list of countries in the region moving toward cashless, regulated commerce in precious metals and stones.
