Kuwait cracks down on illegal money exchange with harsh new penalties
Kuwait has introduced stricter rules on money exchange activities under a new decree-law. The legislation, issued recently, targets unlicensed operations with heavy penalties. Authorities aim to strengthen oversight of financial transactions and protect economic stability.
The decree-law, numbered 162 of 2025, adds a news-breaking provision to the Law Regulating Commercial Shop Licenses. It explicitly criminalises unlicensed money exchange activities, imposing tough sanctions on violators. Individuals caught operating without approval face up to six months in prison, fines of up to 3,000 dinars, or both.
Private companies found breaking the rules will pay fines between 5,000 and 20,000 dinars. Repeat offenders risk having their businesses shut down. The law also mandates that all money exchange operations must obtain proper licensing before trading. In Kuwait, the Central Bank (CBK) holds the primary authority for issuing exchange licenses. The Ministry of Commerce and Industry also plays a role in regulating these activities. Most countries follow a similar approach, placing oversight under central banks to ensure financial security. The new rules will take effect one month after their publication in the Official Gazette. This timeline follows Article 178 of Kuwaitâs Constitution, which governs the implementation of new laws. Officials have stressed that the changes are necessary to maintain public order and safeguard the financial system.
The decree-law introduces clear penalties for illegal money exchange operations. Licensed businesses will now operate under stricter supervision from the Central Bank of Kuwait. The legislation is set to tighten control over fund movements in and out of the country once enforced.
