Kuwait sets new standards for exchange companies’ operations
The decision by Khalifa Al-Ajeel, Minister of Commerce and Industry, mandates compliance with ministry supervision and adherence to the requirements set by the Central Bank of Kuwait.
• The Minister of Commerce and Industry stated that existing exchange companies must meet the Central Bank of Kuwait’s requirements by March 31, after which alternative transfer services will be prohibited.
Khalifa Al-Ajeel, Minister of Commerce and Industry, has issued Ministerial Decision No. 233 of 2024, establishing regulations for exchange companies and institutions. The decision mandates compliance with the ministry’s supervision and adherence to the requirements set by the Central Bank of Kuwait, according to Q8-Press.
The ministry stated in a press release that the decision’s first article outlines three obligations for exchange companies and institutions under its supervision. These entities, engaged in activities such as selling, buying, or exchanging foreign currencies or providing money transfer services for customers, must adhere to these obligations.
It added that one of these obligations includes submitting an application to the Central Bank of Kuwait through the ministry to obtain preliminary approval for money transfer activities. This application must include a pledge to comply with the requirements specified by the Central Bank of Kuwait for providing the intended service.
The ministry emphasized that the decision requires companies to meet the Central Bank of Kuwait’s stipulations within a specified timeframe from the date of the initial approval. Furthermore, companies are prohibited from offering the specified service until the bank issues final approval and the registration process in the exchange companies’ register is completed.
The ministry also noted that the decision’s second article grants existing exchange companies and institutions a grace period to comply with the Central Bank of Kuwait’s requirements, with the deadline set for March 31.
Additionally, all activities and commercial licenses, including those of exchange institutions, are barred from providing alternative transfer services starting March 31.
The ministry highlighted that Article 4 stipulates the suspension of issuing new licenses for exchange institutions or companies. It also mandates the suspension or cancellation of licenses for institutions or companies that fail to comply with the requirements of the Central Bank of Kuwait. Additionally, the ministry noted that Article 5, the final article, specifies that the decision will take effect from the date of its issuance and publication in the Official Gazette.
