Kuwait: Banks Given Access to Public Employees’ Data

Alari, 13 June 2024: Kuwaiti banks have signed a cooperation agreement with the Civil Service Commission stating that they would be allowed access to the data vault of employees in government agencies.

Under this agreement, banks will be authorised to obtain relevant financial information, including salary certificates with detailed income records, from employees seeking loans, which will aid in making informed lending decisions.

Extracting employee data from the official ‘Civil Service’ website will require prior written consent from the client, granting the bank access to the information while complying to strict confidentiality protocols for safeguarding employee data.

The banks have conducted a study on this matter and determined that direct access to the salary data of employees in government agencies would offer several benefits.

It will facilitate the process of obtaining salary certificates, thereby reducing the administrative burden and simplifying the routine procedures for both banks and government agencies.

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Kuwait: Capital Markets Authority Issues Disciplinary Decisions Against Companies and Individuals

Mubasher, 11 June 2024: The Kuwait Capital Markets Authority has imposed nine disciplinary actions on individuals and companies.

According to the Authority, the first disciplinary Kuwait Capital Markets Authority Decision No. 84/2023 imposed a financial penalty on Capital Holding Company for violating disclosure and transparency rules.

The decision has fined Capital Holding Company 10,000 Kuwaiti dinars for two related violations.

As for the second violation, it relates to the issuance of Kuwait Capital Markets Authority Decision No. 84/2023 imposing a financial penalty on the Gulf Petroleum Investment Company for violating listing rules.

The company Gulf Petroleum Investment Company was fined 1,000 Kuwaiti dinars for a violation.

Regarding the third violation, Kuwait Capital Markets Authority Decision No. 85/2023 was issued, imposing a financial penalty on Agility Public Warehousing Company for violating listing rules.

The Authority has fined Agility Public Warehousing Company 3,000 Kuwaiti dinars for a violation.

For the fourth violation, the Kuwait Capital Markets Authority Decision No. 86/2023 fined Metals and Transformative Industries Company 1,000 Kuwaiti dinars for violating disclosure and transparency rules.

As for the fifth violation, Kuwait Capital Markets Authority Decision No. 88/2023 was issued, imposing a financial penalty on Wethaq Takaful Insurance Company for violating disclosure and transparency rules.

A financial penalty of 3,000 Kuwaiti dinars was imposed on the Insurance Company for the violation.

For the sixth violation, Kuwait Capital Markets Authority Decision No. 89/2023 fined Arabi Holding Group Company, its Chairman, Vice Chairman, four Board members, Financial Manager, and external auditor for violating disclosure, listing, governance, and securities rules.

The decision included imposing a financial penalty of 20,000 Kuwaiti dinars on Arabi Holding Group Company for the first violation, 1,000 Kuwaiti dinars for the second violation, and 3,000 Kuwaiti dinars for the third violation assigned to it with all its items.

A financial penalty of 3,000 Kuwaiti dinars was also imposed on each of the Vice Chairman of the Board of Directors of Arabi Holding Group Company, three members of the Board of Directors, and the Financial Manager of the company for the violation attributed to them with all its items.

Additionally, a 5,000 Kuwaiti dinar fine was imposed on an “Arabi Holding” Board member acting as CEO for related violations, and a 1,000 Kuwaiti dinar fine on the company’s auditor for two violations.

For the seventh violation, Kuwait Capital Markets Authority Decision No. 90/2023 fined Al-Midan Dental Clinic Company, its Chairman, former Vice Chairman, and two Board members for violating disclosure, transparency, and corporate governance rules.

The decision included imposing a financial penalty of 2,000 Kuwaiti dinars on Al-Midan Dental Clinic Company for violating the provisions of items (16) and (17) of Article (4-1-1) of Chapter 10 (Disclosure and Transparency) of the Executive Regulations of Kuwait Law No. 7/2010 and their amendments.

A 50,000 Kuwaiti dinar fine was imposed on the Chairman, former Vice Chairman, and two Board members of the “Al-Midan” Company for violating Articles 3(1) and 7(3) of Chapter 15 (Corporate Governance Rules) of the Executive Regulations of Kuwait Law No. 7/2010 and their amendments.

In the eighth violation, Kuwait Capital Markets Authority Decision No. 91/2023 was issued, imposing a financial penalty on Equipment Holding Company for violating listing rules.

The Authority has stated that this was for violating the provisions of Article 1-14 of Chapter 12 (Listing Rules) of the Executive Regulations of Kuwait Law No. 7/2010 and its amendments.

It continued that this was represented in the company’s non-compliance with International Financial Reporting Standard No. 9 (Financial Instruments) and the third qualification from the auditor’s report for the year ended 31 December 2022.

In addition to the company’s non-compliance with International Accounting Standard No. 16 “IAS 16” (Property, Plant and Equipment) and the fourth qualification from the auditor’s report for the year ended December 2022.

The decision included imposing a financial penalty of 5,000 Kuwaiti dinars on Equipment Holding Company for each of the two violations attributed to it.

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Kuwait: Approves Unrestricted Hiring of Overseas Workers

Arab Times, 3 June 2024: The Public Authority for Manpower (PAM) has opened the door for the issuance of work permits by 100% for all companies.

With such a decision, employers can now bring workers from abroad according to the estimated numbers.

According to the decision issued by PAM, the fee specified for the issuance of a work permit is KD 150.

Through this decision, PAM has canceled the previous conditions that used to classify the companies into three groups.

The first group that was eligible to receive work permits for 100% of their estimated labour need.

The second group that could receive work permits for 50% of their need, and the third group that could obtain work permits for 25% of their need.

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Kuwait: Proposed Amendments to Traffic Violation Fines

Arab Times, 23 May 2024: The Kuwaiti Interior Ministry has introduced plans to impose harsher penalties for traffic violations to improve road safety and regulate reckless driving.

The proposed Traffic Law amendments to be approved soon include one to three years in jail or KD 1,000-3,000 fines for driving under the influence, three months jail or KD 300 fines for phone use while driving, three months jail or KD 500 fines for speeding, and two months jail or KD 200 fines for tinted window violations.

Additionally, other proposed amendments include KD 75 fines for leaving children or pets unattended in vehicles or allowing them to protrude from windows, KD 100-200 fines for allowing children under ten to sit in the front seat or not using child seats, KD 250-500 fines for failure to give way to emergency vehicles, and three months jail or KD 200-500 fines for running red lights.

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Kuwait: Advertisement Regulations Amended

Alrai, 16 May 2024: The Public Works Minister and the State for Municipal Affairs Minister have issued a ministerial decision to amend advertisement regulations.

The regulatory amendments now include new fees for recent advertisements that previously did not have financial compensation as listed in the advertisements, with some provisions being amended.

The amendments involve the introduction of new fees, including a charge of 5 dinars per square meter per month for seasonal advertisements.

A fee of 75 dinars annually per square meter on animated electronic advertisements.

Additionally, 50 dinars annually per square meter on fixed and non-moving electronic commercial advertisements.

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Kuwait: Using Deceased’s Biometrics To Unlock Their Phone Is Not Allowed

Al Qabas, 3 May 2024: The Endowments Ministry, through the Fatwa and Sharia Research Sector, has issued a ruling stating that it is not permitted for the family of a deceased person or anyone else to use their hand or face fingerprint to unlock their phone.

These biometrics are deemed part of the deceased person’s privacy.

The Fatwa has further stated that if there is a need to unlock the deceased’s phone, this should be done through the judiciary or the competent security authority.

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Kuwait: Consultation on Draft Procurement Law

Argaam, 30 April 2024: The Ministry of Justice has circulated a draft “Public Procurement” law to government agencies for review.

The Ministry wishes to get their opinions, observations, and recommendations before drafting the new law in its final form, referring it to the Council of Ministers and then presenting it to the National Assembly.

The draft, law which has seven articles, stipulates the repeal of Kuwait Law No. 49/2016 On Public Tenders. As a result employees at the Central Agency for Tenders will be redeployed to other public entities at the same grades, and with the same salary and benefits.

Article 2 of the new law in Chapter One, specifies its scope of application and exceptions which include regulating the purchase of items, contracting and services, carried out on behalf of public entities, and contracts for import services for radio and television programmes.

Bodies including Defense Affairs, the National Guard, the Interior Ministry, Central Bank, the Kuwait Petroleum Corporation and its companies, and the Public Authority for Housing Welfare would be exempt from the new legislation.

Contracting in accordance with the provisions of the law will be through public tenders, but as an exception and by a reasoned decision from the competent minister, will will be possible to contract via limited tender, practice, competition, and direct order.

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Kuwait: New Auditing Rules Approved

Arab Times, 21 April 2024: Kuwait’s Central Bank has implemented new auditing rules as part of its ongoing efforts to tackle money laundering.

They have done so in line with Financial Action Task Force or FATF standards.

The Central Bank has mandated that exchange companies it supervises hire an impartial global auditing firm to assess compliance with Kuwait Law No. 106/2013 (the Anti-money Laundering and Terrorist Financing Law).

The audit focuses on transactions and activities that appear strange or lack clear, legitimate economic purposes.

The auditing must be carried out twice a year on 30 June and 31 December. The new rules are aimed at ensuring transactions are not conducted with individuals or entities listed on international or national blacklists.

It also involves public benefit organisations and charitable institutions being investigated by a sample of their transactions being audited.

The audit also verifies customer information and details about the actual beneficiaries of transfers are properly collected and updated. Records of customers and their transactions must be retained for at least five years.

The appointed auditor cannot be an internal auditor or affiliated with the company’s internal control team.

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