Kuwait May Soon Ban Cash Deals for Jewellery and Watches

Kuwait Jewelry News: Kuwait Once Again Considering Sweeping Change in Luxury Goods Trade

Kuwait’s Ministry of Commerce and Industry is once again currently examining a proposal that could reshape how high-end items like jewellery and luxury watches are bought and sold in the country. According to officials familiar with the deliberations, the Ministry is contemplating a ban on the use of cash for purchasing gold, jewellery, and premium timepieces. This idea was brought up in November of 2024 but there was initially a lot of concerns raised by retailers. But once again the plan is again being flaunted. The initiative is aimed at curbing illegal activities, particularly money laundering and tax evasion, which officials believe are becoming increasingly linked with large-scale cash transactions in the luxury goods sector.

Soon expensive watches like these cannot be bought with cash in Kuwait
Image Credit: StockShots

This Kuwait Jewellery News report comes at a time when several Gulf countries are tightening regulations on financial transparency and commercial accountability. If implemented, the proposal would mandate that all such high-value transactions be conducted through traceable payment channels—such as credit cards, bank transfers, or other electronic methods—to ensure clear documentation and prevent the flow of unregulated funds.

Industry Impact and Growing Concerns

While the Ministry has not yet issued an official statement or timeline for the proposed rule, local jewellers and watch dealers have already begun expressing concern over the potential impact on their business operations. Many high-end retailers in Kuwait say that a significant portion of their clientele still prefers using cash, both for privacy reasons and out of habit. A sudden shift to non-cash payments, they argue, could result in reduced sales or drive some buyers to other markets where such restrictions are not in place.

However, sources within the Ministry stress that the move is not aimed at disrupting business but at aligning Kuwait’s commercial practices with international anti-money laundering standards. The financial crimes division has reportedly flagged multiple cases where large jewellery and watch purchases were used as fronts for laundering illicit funds, prompting this potential clampdown.

A Step Toward Global Compliance

Kuwait’s possible ban on cash transactions in the jewellery and luxury watch sectors is seen as part of a broader regional effort to enhance financial integrity. Neighboring nations like the UAE and Saudi Arabia have already begun tightening scrutiny over cash dealings in high-risk sectors. This proposed measure would bring Kuwait in line with similar global practices, potentially enhancing its standing with international watchdogs such as the Financial Action Task Force (FATF).

While nothing is final yet, jewellers across Kuwait are watching the situation closely. Many are already consulting with legal advisors and financial institutions to prepare for a possible future where digital transactions become the norm in the luxury goods trade.

Should this regulation come into force, it could signal a transformative moment for the Kuwaiti luxury market. Not only would it alter how business is conducted, but it could also elevate transparency, reduce financial crime, and bring a new level of accountability to the glittering world of gold and watches in Kuwait.

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