Informed sources told Al-Qabas that not a single company or exchange institution has applied to the Ministry of Commerce and Industry, to regularize its status in accordance with the Central Bank of Kuwait’s requirements. This comes despite regulatory authorities granting a four-month grace period for compliance, indicating a lack of response from the sector.
Sources confirmed that most money exchange offices regulated by the Ministry of Commerce are facing imminent closure, especially those in Mubarakiya and other markets across the country. With the grace period for legalizing their status set to expire on April 1, these businesses must comply with the Central Bank of Kuwait’s stringent requirements, including operating under a company with a minimum capital of KWD 2 million, among other regulations.
Kuwait has a total of 177 exchange companies and institutions, with 30 operating under the supervision of the Central Bank of Kuwait, while the remaining 147 are regulated by the Ministry of Commerce and Industry.
New Regulatory Requirements
Sources stated that all exchange companies and institutions operating under the Ministry of Commerce, must amend their legal status. To continue operations, they are required to submit an application to establish an exchange company to the Ministry, accompanied by the following:
- Economic feasibility study for establishing a new company.
- The company must have a fully paid capital of no less than two million dinars.
- A General Manager must be appointed, holding a university degree in accounting, finance, economics, administrative sciences, or banking studies, with 10 to 15 years of relevant experience.
- Appoint a Head of the Internal Audit Unit and an experienced compliance officer, in addition to meeting other specified conditions.
Sources confirmed that the challenge facing exchange offices is not the requirement to secure the two million dinar capital, but rather meeting other regulatory conditions.
