Five charitable associations face account suspensions in Kuwait

• Abdulaziz Al-Ajmi, Director of the Department of Charities and Foundations at the Ministry of Social Affairs, urged associations and charities to commit to timely submission of administrative and financial reports to avoid legal procedures that could disrupt their activities.

Abdulaziz Al-Ajmi, Director of the Department of Charities and Foundations at the Ministry of Social Affairs, stated that the suspension of financial accounts for five charitable associations—due to their failure to submit periodic financial and administrative reports—is a routine procedure. He clarified that if these associations submit the required data, the suspension will be lifted, emphasizing that this action does not imply any violations necessitating the suspension of their operating licenses, according to Al Rai newspaper.

Al-Ajmi told the newspaper that “the financial and administrative audit process is conducted by the administration every three months to assess compliance with the works and projects undertaken by these entities. If a charity fails to submit its report on time, its accounts will be temporarily audited based on bank statements until the report is submitted.”

Al-Ajmi urged associations and charities to commit to timely submission of administrative and financial reports to avoid legal procedures that could disrupt their activities.

He also noted that the ministerial decision on information disclosure requires charities to submit their administrative and financial reports at the end of each financial year and to publish these reports on their websites.

At the same time, the Ministry of Social Affairs and Labor urged charities to adhere to the provisions of a previous ministerial decision on the disclosure of financial statements and to publish their audited financial statements for public review on their websites.

The ministry issued a circular for associations and organizations regarding the disclosure of financial statements, stating that “as part of the ministry’s commitment to its regulatory and supervisory role over charities, in implementation of the law and in line with the principles of disclosure, transparency, and governance, the Ministry issued Ministerial Decision No. (174/A) of 2022 concerning the disclosure of financial statements for public benefit associations and charitable organizations. We ask that you comply with this decision by publishing your audited financial statements and making them available for review on your websites.”