Kuwait bans cash payments in insurance sector

Kuwait has moved to tighten financial oversight in its insurance sector, with the Insurance Regulatory Unit issuing Resolution No. 32 of 2026 prohibiting all cash transactions by entities under its supervision.

Under the new rules, insurance companies and licensed providers must carry out all payments and collections exclusively through banking channels or electronic systems approved by the Central Bank of Kuwait, in line with regulatory frameworks governing financial operations.

An exception has been granted for individual insurance documents issued at border crossings, particularly those linked to compulsory vehicle cover, recognising the practical challenges associated with such transactions, according to Al-Rai.

The Kuwait regulation states that any breach will result in accountability measures under Law No. 125 of 2019 and its executive bylaws, without prejudice to penalties set out in other applicable legislation.

The move is also consistent with Kuwait’s wider legal framework aimed at tackling financial crime, including Law No. 106 of 2013 on anti-money laundering and counter-terrorism financing.

Set to take effect from 22 April 2026, the decision will be published in the Official Gazette and enforced by relevant authorities. It forms part of Kuwait’s broader push towards digitalisation, reducing reliance on cash while strengthening compliance, traceability and financial governance across the insurance industry.