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Jail Time and Fines for Cash Vehicle Sales in Kuwait

The official gazette, Kuwait Al-Youm, has published the decision by Commerce and Industry Minister Khalifa Al-Ajeel, banning cash transactions for vehicle sales and brokers dealing with the sale of light and heavy vehicles on commission. The decision will take effect three days after issuance.

Article 13 of the Decree, amended by Law No. 117/2013, states that violations of clauses one and two of Article One will result in fines ranging from KD100 to KD1,000. For violations of Clause Two, the punishment is imprisonment between one and six months, and/or a fine of KD50 to KD1,000.

Violations of Clause Three will be punished with imprisonment between three months and three years and fines ranging from KD500 to KD3,000, or both. Additionally, Article 73 of Penal Code No. 16/1960 allows the authorities to close the establishment for up to three months or revoke its license and shut it down permanently.

For violations of clauses three and four of the article, penalties include imprisonment of one month to two years and fines of KD500 to KD5,000, along with the confiscation of goods and tools. The vehicle used in the crime can be seized, provided it does not affect the rights of third parties.

If a crime under this law is committed, the minister can order the closure of the establishment until the case is resolved. The Ministry of Commerce and Industry, Public Prosecution, or the court may allow the reopening of the establishment upon request. Penalties will be doubled for repeat offenses, including cancellation of the license and permanent closure of the establishment.

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