Eleven currency firms closed over security neglect
About 11 small and medium currency exchange companies in Kuwait are facing violations related to insufficient compliance in updating their systems and procedures to combat money laundering and terrorist financing. As a result, their operations have been temporarily suspended. These measures are part of supervisory efforts to enhance their ability to identify the actual beneficiaries of transfers and to prevent money laundering and illegal financing, especially complex cases conducted through high-risk regions or involving illegal activities. Companies are required to modify their systems and activate supervision tools—such as security buttons, enhanced due diligence, and early warning systems—before resuming operations, in line with Kuwait’s commitment to the recommendations of the Financial Action Task Force (FATF). The main violations include incomplete verification of the true beneficiary and ignoring indicators of suspicious transactions, especially in areas with limited financial infrastructure. These violations pose accountability concerns and threaten the security of the financial system.
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