Kuwait bans unlicensed currency exchange, illegal operators face jail and KD 3,000 fine
Kuwait has officially banned unlicensed currency exchange operations. Anyone found conducting illegal money exchange now risks jail time and a fine of up to KD 3,000 as the government strengthens measures against financial violations.
Kuwait has introduced strict new regulations to curb illegal currency exchange activities across the country. The decision aims to tackle unlicensed operators who have been conducting money transfers and foreign exchange dealings outside the legal framework. Authorities say such practices can lead to financial fraud, money laundering and other economic risks.
Under the new rule, anyone performing currency exchange without an approved licence will face penalties that include imprisonment and a fine of up to KD 3,000. The government has also instructed law enforcement agencies to monitor suspected locations more closely and take action against operators functioning without proper authorisation.
Officials explained that unauthorised money exchange businesses often operate in residential areas or small commercial centres where transactions are carried out informally and without documentation. This creates significant vulnerabilities within the financial system. By enforcing a ban, Kuwait aims to protect consumers, strengthen its monetary controls and align with international standards on financial transparency.
Banks and licensed exchange houses have welcomed the move, saying that tighter regulation will create a safer environment for legitimate financial transactions. They also emphasised that customers should verify the credentials of any exchange service before carrying out dealings.
The new policy is part of a broader plan to modernise Kuwait’s financial sector, enhance compliance and ensure that monetary transactions remain accountable. Authorities have urged residents to report suspicious currency activities and to rely only on authorised exchange centres.
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