The anti-money laundering laws of Kuwait, Oman and Qatar require financial institutions and specified non-financial businesses and professions (such as accounting and law firms) to apply customer due diligence measures in defined situations: when establishing a new business relationship, when carrying out occasional transactions above a set amount, and whenever there is suspicion of money laundering or terrorist financing regardless of the value of that transaction.

What Do Due Diligence Procedures Mean?

Jordan's law defines "due diligence procedures" as the process of identifying or verifying the customer's or beneficial owner's information, the nature of their business, and the purpose of the business relationship, in a manner that enables reporting entities to assess their exposure to risk.

Kuwait: Four Core Measures

Kuwait's Law No. 106 of 2013 requires financial institutions and specified non-financial businesses and professions, having regard to the results of the risk assessment, to take the following due diligence measures: identifying and verifying the identity of the customer and the beneficial owner using reliable, independent documents or data, understanding the purpose and nature of the business relationship, continuously monitoring that relationship and scrutinising transactions to ensure they are consistent with the information available about the customer, and identifying the customer's ownership and control structure.

Oman: When Due Diligence Applies

Oman's Anti-Money Laundering and Counter-Terrorist Financing Law No. 30 of 2016 requires financial institutions and non-financial businesses and professions to identify and verify customers based on reliable sources, documents and information issued by official bodies, in five situations: before establishing a business relationship; before executing a transaction for a customer with no existing business relationship whose value equals or exceeds the limit set by the supervisory authority, whether carried out in a single step or through several linked steps; before executing an electronic transfer for such a customer at or above that same limit; whenever there is suspicion of a money laundering or terrorist financing operation, regardless of its value; and whenever there is doubt about the accuracy or adequacy of the customer's previously obtained identification data.

The Risk-Based Approach Under Kuwaiti Law

Kuwaiti law ties the application of due diligence measures to the results of the risk assessment: enhanced due diligence measures must be applied where money laundering and terrorist financing risks are assessed as high, and simplified measures may be applied where those risks are assessed as low. The law, however, expressly prohibits applying simplified measures where there is suspicion of money laundering or terrorist financing operations, regardless of the previously assessed risk level.

Qatar: Five Defined Triggers for Due Diligence

Qatar's Anti-Money Laundering and Counter-Terrorist Financing Law No. (20) of 2019 precisely defines when due diligence measures must be taken: when establishing a business relationship; when carrying out occasional financial transactions equal to or exceeding an amount set by the executive regulations; when completing occasional transactions through wire transfers; when there is suspicion of a money laundering or terrorist financing operation regardless of its amount; and when there are doubts about the accuracy or adequacy of previously obtained identification data.

Legal References

For questions about your specific situation, you can ask the Tax & Legislation Helper for your country on Helpers, or consult a licensed chartered accountant.