Kuwait just made hawala operations illegal after the Cabinet signed off on changes to the Commercial Licensing Law. The amendment targets informal money transfer networks that move cash outside official banks and exchange companies, and violators can face up to six months in jail plus fines hitting 3,000 dinars.
The government says these underground systems create a shadow economy that helps launder money and fund sketchy activities while dodging any kind of regulatory oversight. Repeat offenders or businesses caught running these operations get hit harder with potential shutdowns, asset seizures, and their court rulings published in the official gazette.
The Ministry of Commerce and Industry is pushing this as a way to lock down financial security and meet international compliance standards, and they're making it clear that enforcement is coming for everyone involved in unlicensed currency transfers.
The government says these underground systems create a shadow economy that helps launder money and fund sketchy activities while dodging any kind of regulatory oversight. Repeat offenders or businesses caught running these operations get hit harder with potential shutdowns, asset seizures, and their court rulings published in the official gazette.
The Ministry of Commerce and Industry is pushing this as a way to lock down financial security and meet international compliance standards, and they're making it clear that enforcement is coming for everyone involved in unlicensed currency transfers.
