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Kuwait cracks down on exchange shops to improve transparency

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Kuwait’s push to exit FATF ‘follow-up phase’ drives new oversight on exchange sector

KUWAIT: Kuwait is tightening oversight on its money exchange sector as part of efforts to exit the Financial Action Task Force (FATF) “follow-up phase,” which evaluates countries’ progress in combating money laundering and terrorism financing. This week, Minister of Commerce and Industry Khalifa Al-Ajeel launched an inspection campaign to ensure compliance with new regulations for exchange shops, which aim to ensure the sector aligns with international standards. The campaign, covering key areas with high concentrations of exchange offices, is part of Kuwait’s broader efforts to improve financial transparency.

Al-Ajeel emphasized that Kuwait’s leadership is committed to meeting FATF’s requirements, bolstering the nation’s economic standing, and enhancing its reputation in global financial assessments. An FATF report released in November 2024 has found that Kuwait has a legal and supervisory framework in place to combat illicit finance, but faces significant challenges in effectively addressing money laundering and terrorist financing. Countries that fail to comply with FATF’s recommendations may be placed on a “grey list” or “black list,” which can affect their international financial reputation and relationships with other countries and institutions.

A key part of the regulations, which stem from a Cabinet decision in June 2024, mandates that exchange businesses comply with stricter requirements set by the Central Bank of Kuwait, including a minimum capital of two million Kuwaiti dinars. The deadline for the bureaus to comply expired on March 31, 2025, with exchange bureaus failing to meet the requirements facing a suspension of operations. Local banks also issued warnings, requiring exchange companies to close their accounts, with penalties for non-compliance.

An inspection officer stands next to a closed exchange shop.

An inspection officer stands next to a closed exchange shop.

This regulatory shift involves transferring supervision of exchange bureaus from the Ministry of Commerce and Industry to the Central Bank of Kuwait, which is tasked with ensuring the sector meets financial standards and prevents illicit activities. Other regulations introduced by the Central Bank include prohibiting exchanges from speculating in foreign currencies and requiring internal control systems for businesses.

According to a statement from the commerce ministry, the exchange sector in Kuwait consists of 138 offices regulated by the ministry, with varying capital levels, many far below the two million dinar requirement. In addition, 31 exchange companies are regulated by the Central Bank, Al-Rai reported. Exchange offices are limited to currency exchange activities and do not have licenses for international money transfers, giving them a competitive edge in providing better exchange rates.

These offices also specialize in high-risk currencies like the Iranian rial and Syrian pound, which exchange companies typically avoid. Exchange companies have correspondent relationships with international banks and hold accounts with local banks to cover currency purchases, unlike exchange offices, which operate more locally without these resources. The latter are often located in commercial districts such as Al-Mubarakiya and Fahaheel, near gold shops, while exchange companies are spread across Kuwait’s residential areas.

The inspection revealed that most exchange bureaus had closed following the expiration of the grace period, with only one violation recorded. It remains unclear whether the closures were due to fear of repercussions for failing to meet the Central Bank’s conditions or if the bureaus were simply awaiting approval after taking steps to comply with the requirements. — Agencies

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IICO launches food aid project for 240,000 displaced Gazans

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KUWAIT: The International Islamic Charitable Organization (IICO) has launched its “Takeyat It’aam Al-Ta’am” (Charitable Food Kitchen) project, aiming to reach 240,000 beneficiaries over the course of one month by distributing balanced meals in shelter centers. The initiative comes in response to the dire humanitarian conditions facing displaced people and refugees in Gaza due to the ongoing siege and conflict.

In a press statement issued Thursday, the organization said the project, which began on May 6 and will continue through June 5, aims to provide food security to the most vulnerable groups and alleviate their daily suffering under the current circumstances. The organization emphasized its particular focus on relief projects with direct impact, which help improve the lives of affected families and support their resilience.

The statement added that the initiative was launched in response to severe shortages in food supplies, a worsening humanitarian crisis, and rising malnutrition rates, particularly among children, pregnant women, and nursing mothers. It noted that most residents in camps and shelters rely almost entirely on humanitarian aid to meet their basic needs.

The organization explained that the project serves several key objectives, most notably: providing nutritious meals to those in shelters, ensuring they receive minimum daily dietary requirements, improving overall health, reducing nutrition-related illnesses, and offering psychological and emotional support amid the intense pressures and hardships they face. It further noted that “Takeyat It’aam Al-Ta’am” meals are prepared and distributed within the shelters in an organized and hygienic manner that preserves the dignity of recipients — especially vulnerable groups such as children, women, and the elderly, who are prioritized in distribution. This comes amid the rapid collapse of food supply chains within Gaza. — KUNA

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ktech becomes exclusive partner of Fraunhofer UMSICHT in Middle East

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Europe’s leader in applied environmental, safety and energy research to launch first and only academy

SULZBACH-ROSENBERG, Germany: In a landmark achievement for Kuwait’s knowledge economy, Kuwait technical college (ktech) has signed a strategic partnership with Germany’s Fraunhofer Institute UMSICHT, Europe’s leader in applied environmental, safety and energy research, to launch the institute’s first and only academy in the Middle East.

The strategic and exclusive partnership with one of the world’s leading applied research institutes aligns with the directive of His Highness the Amir of the State of Kuwait, Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, to attract prestigious international institutions to the country. It reflects Kuwait’s national vision to establish itself as a regional hub for innovation, creativity and knowledge. Moreover, the partnership represents a meaningful step toward strengthening Kuwaiti-German relations, following the recent official visit of His Highness the Prime Minister Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah, to the Federal Republic of Germany.

The signing ceremony, held at Fraunhofer UMSICHT’s Sulzbach-Rosenberg headquarters, in the presence of ktech’s top management, including Meshari Ayman Boodai, Chairman, Board of Trustees; Noura Ayman Boodai, Vice President for Student Affairs and Registration; Abdulrahman Abdulqader Al-Ajeel, Vice President for Finance and Administration; Abdulwahab Ayman Boodai, Assistant Vice President for Student Affairs and Registration; and Nourah Amer Al-Oseimi, Assistant Vice President for Finance and Administration. Also, in attendance was Adel A Al-Ghenaiman, Consul General of the State of Kuwait in Frankfurt, representing the Ministry of Foreign Affairs.

This exclusive partnership marked a major milestone in ktech’s mission to bridge academic excellence with industrial relevance. This initiative will serve as a regional innovation and training hub for the entire MENA region, directly aligning with Kuwait’s Vision 2035 and its goals for sustainability, economic diversification and human capital development.

This transformational partnership brings to Kuwait the full weight of Fraunhofer UMSICHT’s technical infrastructure, which includes: Over 30,000 employees across Germany and the world; 76 institutes and research facilities; €3 billion operating budget; and cutting-edge research in green hydrogen, circular economy, carbon management local energy systems, cyber security, robotics engineering and waste recycling. These capabilities will now be embedded in Kuwait through ktech’s infrastructure, ensuring localized delivery of global expertise.

Commenting on the announcement, Meshari Ayman Boodai, Chairman of the Board of Trustees at ktech, stated: “This partnership reaffirms Kuwait technical college’s position as Kuwait’s leading driver of applied learning, professional education, local research support and sustainability-focused innovation. Hosting the institute’s only academy in the Middle East and one of seven worldwide, is a reflection of our vision to build an educated, technically skilled workforce capable of solving Kuwait’s, and the region’s, most pressing challenges.”

The Fraunhofer Institute’s presence in Kuwait will offer training programs and professional education co-designed by Fraunhofer researchers and delivered in collaboration with ktech’s academic and technical experts through the ktech Institute for Private Training. These programs will span key disciplines and offer multiple tracks for industry professionals, government officials, undergraduate and postgraduate students and academic researchers.

Adel A Al Ghenaiman, Consul General of the State of Kuwait in Frankfurt, praised the initiative: “Kuwait’s diplomatic missions abroad remain fully committed to supporting initiatives that serve our country’s interests and help develop education and knowledge exchange. We wish everyone continued success.”

Fraunhofer UMSICHT Director Matthias Franke added: “We are proud to begin this partnership with Kuwait technical college. This memorandum of understanding marks the start of a fruitful collaboration in applied research and development, focusing on areas such as the circular economy, clean hydrogen and sustainable local energy systems for industry.”

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Kuwait to introduce gene therapy for teens with blood disorders

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KUWAIT: Minister of Health Dr Ahmad Al-Awadhi announced on Friday that more than 40 successful stem cell transplant operations have been performed in Kuwait for children suffering from thalassemia and sickle cell anemia, noting that “these procedures are increasing due to advanced medical efforts and ongoing government support.” In his opening speech at the First Pan Arab Thalassemia and Sickle Cell Disease Awareness Conference, Dr Al-Awadhi also revealed that gene therapy for children over the age of 12 is under review in Kuwait as a promising treatment option for thalassemia and sickle cell anemia, and that it is expected to be available soon as part of the country’s national health plans. “This step will open new horizons for full recovery and improved quality of life,” he said, adding that it falls under a comprehensive national strategy aimed at easing the burden on patients and their families and enhancing their well-being.

He expressed Kuwait’s pride in its notable achievements in prevention, especially the premarital screening program, which has been implemented since 2009. He noted that more than 400,000 screenings have been conducted using the latest advanced diagnostic tools. In addition, a specialized genetic laboratory has been established to diagnose blood disorders using multiple modern genetic techniques, the latest of which is Next Generation Sequencing (NGS). He emphasized that the program’s success was proven in a scientific study published in 2019, which showed a significant drop of over 50 percent in the number of cases at risk of transmitting hereditary blood diseases among engaged couples.

This success has led to a noticeable decrease in new thalassemia cases diagnosed in newborns, children, and citizens in Kuwait. Consequently, the Ministry of Health decided to include residents in the premarital screening program. This resulted in a recently issued law mandating such screenings for residents prior to marriage.

Dr Al-Awadhi stressed the ministry’s strong commitment to enhancing services for these patients, including providing the latest internationally approved treatments for iron overload, a common complication from repeated blood transfusions. He reaffirmed the ministry’s dedication to introducing the latest globally approved treatments that reduce dependence on blood transfusions by stimulating red blood cell production in patients. Dr Al-Awadhi concluded by stating that these diseases affect not only individuals’ health but also impact families and society as a whole. “We reaffirm our commitment to supporting every scientific or humanitarian initiative that helps raise awareness, improve patients’ quality of life, and enhance efforts in early diagnosis and treatment,” he said. — KUNA

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