Regulatory Alerts2022-06-13
CBK Supervision over Foreign Exchange Companies and Establishment Rules
The Central Bank of Kuwait mandates comprehensive supervision over foreign exchange companies, restricting them from core banking operations and requiring independent registration to ensure clear operational boundaries. The regulatory framework establishes a KD 2 million minimum capital threshold, defines strict qualification criteria for key executive roles such as the Internal Audit Head and Compliance Officer, and obligates firms to maintain accurate financial records and submit timely statistical reports. Empowered by the Central Bank Law, CBK retains full authority to conduct inspections, issue binding instructions, delist non-compliant entities, and impose penalties for violations or misleading disclosures.
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