New rules to tackle money laundering
Closer scrutiny of exchange shops
Permanent bans for non-compliance
Tougher anti-money laundering rules in Kuwait have forced more than 100 exchange companies to close, according to local reports.
The Central Bank of Kuwait’s new rules, which took effect on April 1, include closer scrutiny and an increase in minimum capital to KWD2 million ($6.6 million).
On Tuesday Khalifa Al Ajeel, Kuwait’s commerce and industry minister, toured the district where most of the exchange shops are located – and was surprised to find the bulk of them closed.
“Ministry inspectors who accompanied the minister on his tour noticed that most of the 138 exchange shops operating in the capital were shut as they apparently could not meet the deadline,” said daily paper Al Qabas.
The Kuwait news agency quoted Ajeel as saying the rules, which were introduced last June, are intended to support anti-money laundering laws, boost financial transparency and improve the country’s rating by global agencies.
Fahd Al Hajri, commercial control director at the Ministry of Commerce and Industry, said exchange companies that did not comply would be shut down permanently.
“We have warned them that they will be banned if they do not adhere,” he said.
The law also applies to non-banking financial and business institutions.
Financial penalties under the new law range from KWD500 to KWD10,000 in addition to imprisonment and withdrawal of work licence.
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