Kuwait has approved a new decree-law tightening control over financial activity, targeting unlicensed currency exchange and informal transfer networks that officials say endanger the country’s financial stability.
The Cabinet endorsed the measure during a meeting chaired by Prime Minister Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah at Bayan Palace, confirming penalties for anyone who buys, sells or transfers local or foreign currency without an official license.
Deputy Prime Minister and Minister of State for Cabinet Affairs Shareeda Maousherji said violations may lead to up to six months in jail, fines of up to KD 3,000 or both. Unlicensed shops or branches may also be closed.
A separate announcement from the Ministry of Commerce and Industry detailed the approval of a draft decree-law adding article (12 bis) to the commercial licensing law no. 111/2013. The amendment criminalizes unregulated “alternative remittance systems”, including hawala networks. The ministry described these networks as one of the most dangerous illicit financial practices, warning they create a parallel economy that moves funds across borders without records and facilitates money laundering, terrorism financing and other illegal activity.
According to the ministry, hawala brokers operate outside licensed exchange companies and without documentation, undermining competition, weakening trust in the financial system and violating international compliance standards. The new article prohibits any exchange or transfer activity conducted without a license, inside or outside Kuwait. Punishments include imprisonment, fines, closure of commercial establishments, confiscation of funds and equipment and publication of court rulings in the official gazette. The public prosecution now has full authority to investigate and prosecute related cases.
The ministry said the amendment forms a core part of Kuwait’s national strategy against money laundering and is intended to protect economic security. It said the state will enforce the law without exception, stressing that preserving the national economy requires full adherence to the regulatory framework.