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| Disclosure Law |
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| In August 1996, the Government passed Law No. 25 regarding the disclosure of
commissions in connection with government contracts. This law effectively requires
full transparency and accountability in all government contracts in excess of KD
100 million in value. The law, which applies to all transactions entered into by the
Kuwaiti Government or its agencies, requires a stipulation by the contracting party
as to whether it has paid or will pay a commission of any kind to a disclosed or
concealed intermediary. Additionally, the law imposes an obligation on both the
payer and the payee to disclose, in a separate declaration, the amount of the
commission, the type of currency, and the place and manner of the commission.
The sanctions for non-disclosure or misinformation range from civil and criminal
penalties equal to the value of the payment to imprisonment. However, it is
important to remember that full compliance does not necessarily exonerate the
parties in the event that the payment in question constitutes a violation of any other
Kuwaiti law. |
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| Law Decree on Enhancing Kuwait Financial Stability |
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