Gulf region financial compliance and AML enforcement

Regulatory authorities in the Gulf region are intensifying efforts to enforce financial compliance and anti-money laundering (AML) protocols. In the United Arab Emirates and Kuwait, enforcement has focused on corporate transparency and sector-specific oversight. The UAE Ministry of Economy is strictly enforcing Ultimate Beneficial Ownership (UBO) filings, with companies facing fines of up to AED 100,000 and potential license suspensions for non-compliance. Similarly, Kuwait’s Ministry of Commerce and Industry issued significant financial penalties in the second quarter of 2026, specifically targeting the real estate and precious metals sectors to combat money laundering and terrorist financing.

Concurrently, Saudi Arabia has implemented enhanced oversight on financial transfers to the UAE. The Saudi central bank has reportedly instructed domestic banks to apply additional checks on settlements to mitigate risks. This has resulted in reported delays and the return of fund transfers for some businesses. While the Saudi central bank maintains that its framework aligns with Financial Action Task Force (FATF) standards and denies direct restrictions on specific countries, the increased scrutiny suggests growing regulatory friction between the two nations.