The Kuwait government has taken steps to address the challenges which posed a threat to the economy by passing Law No. 106 of 2013. The law is promulgated with an intention to combat money Laundering and financial terrorism. The New Law supersedes the previous Law No. 35 of 2002 and establishes new and improved governing principles. As per new law terrorist financing is termed as criminal act which comes under Article 3. The law further elaborates that, “a person who can be said to have committed a terrorist financing crime is any person who has directly or indirectly, willingly and illicitly collected funds with the intention to use it for committing a terrorist act”. Also, Article 22 enables the public prosecutor to freeze/confiscate funds or financial instruments, if there is sufficient evidence to suggest that the funds were obtained or used with an intention to finance terrorism.