Kuwait: Eases Residency Transfers for Expats Between Public and Private Sectors

Arab Times, 2 March 2025: The Interior Ministry has announced the removal of previous conditions that restricted the transfer of residency between government and private sector employment.

This decision eliminates the need for expatriates to align their new job roles with their educational qualifications or the nature of their previous work when switching sectors.

Expatriates can now transfer their residency from government sector work to private sector work, and vice versa, without the previously mandated requirements.

The Expatriates’ Residency Law and its executive regulations do not require the verification of professions for individuals seeking to transfer between sectors, nor is there any legal basis for rejecting such requests.

Under the new rules, expatriates are no longer required to ensure that their educational qualifications match their new job roles or adhere to the nature of their previous government sector work.

This change simplifies the process, allowing expatriates to transition to the private sector with ease, following standard procedures and without the bureaucratic hurdles that previously complicated such transfers.

Previously, the transfer of residency was contingent on the new profession being compatible with the expatriate’s educational background and the nature of their prior government sector work.

This restriction limited opportunities for expatriates to explore roles in the private sector and often involved cumbersome administrative processes.

The new decision abolishes these constraints entirely.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Kuwait: New Work Permit Regulations Enforced by PAM

Arab Times, 24 February 2025: The Public Authority for Manpower has announced a significant amendment to the rules and procedures for granting work permits.

This change, introduced through a ministerial resolution, adds a new clause to the existing regulations.

The amendment specifically prohibits the registration of new files for companies if any of their existing files have been suspended, pending the resolution of their legal status.

Suspension cases include scenarios such as inactive licences, licences on blocked files, and licences without a registered address.

The resolution further restricts these companies from undertaking certain actions, including adding new licences, updating licence data, adding new workers, or estimating labour needs.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Kuwait: Introduces New Service to Access Constitutional Court Rulings

Arab Times, 13 February 2025: The Justice Ministry has unveiled a new service, allowing users to access the Constitutional Court’s rulings via the unified government e-services application, “Sahel.”

Available in the Constitutional Court section of the app, it offers a swift and efficient method for reviewing significant judicial decisions.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Kuwait: Tightens Money Transfer Regulations to Combat Financial Crimes

Arab Times, 10 February 2025: Kuwait has recently implemented stricter regulations on money transfers, raising concerns for individuals and companies involved in regular financial transactions.

Those who frequently assist friends with money transfers or act as intermediaries for businesses with employees abroad may find their transactions under increased scrutiny.

The Central Bank of Kuwait is enforcing more rigorous measures to verify the actual beneficiaries of financial transfers, even for amounts under 50 dinars.

This scrutiny applies to recurring transactions, requiring individuals to justify the reasons for their transfers, regardless of their relationship with the exchange company.

These regulatory changes aim to strengthen efforts against money laundering and terrorist financing, aligning with the Financial Action Task Force (FATF) guidelines.

The new rules enhance the Central Bank’s oversight, ensuring that financial transfers comply with FATF standards.

Exchange companies must verify customer information and beneficiary data throughout the transaction process, keeping this information updated and confirming its validity.

Due diligence measures include assessing the effectiveness of automated systems that monitor and prevent illicit activities.

Customer and transaction records must be retained for at least five years after a transaction, with data accuracy verified for transactions exceeding 3,000 dinars in one day.

Exchange companies are also required to report suspicious transactions potentially linked to crime or terrorism financing.

The Central Bank emphasises the importance of effective procedures for reporting suspicious activities.

In cases of suspected illicit transactions, thorough investigations and documentation are required, identifying all parties involved and exploring any potential connections to money laundering or terrorism financing.

To ensure compliance, exchange companies must implement customer due diligence measures based on assessed risk levels.

This includes reviewing customer files and transactions, with additional scrutiny for high-risk customers.

Furthermore, exchange companies must engage an audit office, preferably linked to an international entity, to evaluate compliance with Kuwait Law No. 106/2013.

This audit focuses on unusual transactions lacking clear economic justification, with reports required semi-annually.

Ongoing due diligence requires exchange companies to implement an automated system to verify names against lists of individuals and entities subject to freezing orders, ensuring compliance with international sanctions related to terrorism and weapons proliferation.

Under the new framework, exchange companies are prohibited from providing financial services to individuals or entities listed in freezing decisions, reinforcing Kuwait’s commitment to global security efforts.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Kuwait: Banks Lift Minimum Salary Limit for Opening an Account

Arab Times, 30 January 2025: The Central Bank of Kuwait has issued a directive to banks to open accounts for all customer categories, including those with limited or low incomes, job holders, workers in simple service and craft jobs, and domestic workers.

This move aims to simplify procedures and ensure that banks do not refuse account openings based on salary or income level.

By lifting the minimum salary requirement, middle- and low-income individuals can now access bank accounts in all local banks.

This initiative aligns with the regulatory authority’s focus on financial inclusion, ensuring that banking services are accessible to all segments of society.

It allows individuals to open accounts through official channels at an appropriate quality and cost, protecting their rights and enabling proper money management.

These accounts are crucial for storing funds and facilitating payment transfers.

The removal of barriers aligns with the goal of enhancing financial inclusion, as restricting access to banking services prevents many individuals from accessing useful and affordable financial products.

The effort to make low-value and low-cost bank accounts available also supports the promotion of digital payments.

Recent data indicates that domestic workers make up a significant portion of Kuwait’s workforce, highlighting the importance of this initiative.

The Central Bank stresses the need to make it easier for all societal segments to open bank accounts, urging banks to remove obstacles that prevent certain groups from accessing these services.

The directive also extends to facilitating lending and small deposits, broadening the range of financial services available to all individuals.

This effort aims to provide better opportunities for managing money and securing financial services.

Opening a bank account is seen as a crucial first step in accessing broader financial services, encouraging the use of other financial products like money transfers and limited credit, which can improve quality of life.

Banks are required to comply with the Central Bank’s directive to open accounts for individuals with low salaries, including “worker account holders.

However, these accounts are not actively marketed due to the pressure they place on banking systems, as they typically do not generate significant benefits for banks.

The Central Bank’s initiatives also extend to businesses, including small and medium-sized enterprises (SMEs), with efforts to facilitate access to financial services for these businesses.

The regulatory system is developing strategies and policies to promote financial inclusion, encouraging the use of official financing channels and modern financial technology to reduce operational costs and ease pressures on banks serving low-income customers.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Kuwait: New Amendments In Real Estate Ownership Law

Arab Times, 22 January 2025: Kuwait has taken a significant step forward by approving amendments to Kuwait Law No. 74/1979, which regulates real estate ownership by non-Kuwaitis.

This move is seen as a progressive effort to enhance human rights and stimulate economic activities within the country.

One of the key changes is the allowance for children of Kuwaiti women from Arab countries to permanently own real estate inherited from their mothers.

This amendment is crucial in affirming their human rights and promoting social stability.

Additionally, the decree introduces exemptions for certain economic entities, including companies listed on Kuwait’s licensed stock exchange, investment funds, and portfolios licensed by relevant authorities, as well as investment entities under the Direct Investment Promotion Law.

These entities are now permitted to own real estate necessary for their operations.

The aim is to boost economic growth while imposing restrictions to prevent real estate speculation, ensuring that properties are used solely for investment and development purposes.

These amendments underscore Kuwait’s commitment to fostering a more inclusive society and a dynamic economic environment.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.