Gold has long captivated markets and investors alike. But beneath its shine lies a growing concern: it is one of the most attractive vehicles for money laundering globally. The Financial Action Task Force (FATF) has formally recognized gold as a significant money laundering threat – and it’s easy to see why.

High liquidity. Easy portability. Limited traceability. Rapid turnover. Gold ticks every box for those seeking to move illicit funds through the financial system. In the Gulf region, gold markets thrive; however, regulatory frameworks have traditionally not kept pace with the associated risks.

Kuwait is changing that

In November 2025, Kuwait took a landmark step – prohibiting cash in gold-related transactions. All dealings must now flow through regulated, non-cash channels overseen by the Central Bank of Kuwait, ensuring a traceable paper trail.

Kuwait had already conducted a comprehensive sector-wide assessment, then published a dedicated handbook equipping gold and precious metal dealers with a risk-based compliance framework. The measures were robust and included customer identification, beneficial owner verification, enhanced due diligence, transaction monitoring, and targeted financial sanctions screening.

Enforcement has also been underway for some time. In 2024, gold traders were fined for anti-money laundering breaches, signalling that Kuwait was serious as it worked to satisfy FATF scrutiny and strengthen its financial crime defences. In Kuwait, the message is clear: The gold sector is no longer a regulatory blind spot.

At FACT, we deliver specialist due diligence training in the context of illicit finance – with particular emphasis on the gold and precious metal sector. Whether you are a compliance professional, a financial institution, or gold dealer navigating this evolving landscape, FACT can help. Reach out to learn more about our training programmes.