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Arab Times
19-03-2025
- Business
- Arab Times
Kuwait May Revoke Business Licenses Inactive for 6 Months or Expired for a Year
KUWAIT CITY, March 19: The Ministry of Commerce and Industry is reportedly studying a legal proposal to automatically cancel commercial licenses that have been expired for over a year or inactive for six consecutive months. This comes in response to a growing number of visitors seeking assistance with issues ranging from disclosing "beneficial owner" information to canceling forgotten or suspended licenses to avoid penalties for non-registration. Sources revealed that the ministry is weighing two contrasting legal opinions on the matter. The first, a conservative stance, argues that the ministry lacks the legal authority to unilaterally revoke licenses without a clear legal basis. Proponents of this view emphasize that such action could expose the ministry to legal and financial risks, particularly in cases involving the demolition of commercial centers tied to suspended licenses or those with years of unpaid financial statements. They stress that the license holder's procedural approval for cancellation is a legal necessity. On the other hand, a second opinion supports the ministry's right to cancel licenses under the Companies Law. This view asserts that the ministry can revoke licenses if the associated business has been inactive for six consecutive months, if the company has expired or been liquidated, or if the license holder fails to renew it within a year of its expiration. Advocates argue that this approach aligns with Article 11/3 of Law No. 111 of 2013 on commercial establishment licenses and related ministerial decisions. They also highlight that the measure would alleviate the administrative burden caused by the surge in auditors seeking to fulfill "actual beneficiary" registration requirements. The legal debate follows the discovery of a significant number of dormant licenses, some of which have been inactive since their issuance, while others have not submitted financial statements for years. This issue has been compounded by the ministry's recent enforcement of "beneficial owner" registration, which imposes penalties ranging from 1,000 to 10,000 dinars for non-compliance, and up to half a million dinars under the Anti-Money Laundering and Terrorism Financing Law. Ministry officials are reportedly examining both legal perspectives in detail, with any final decision expected to adhere to the Companies Law, its regulations, and relevant ministerial decisions. Progress on Beneficial Owner Registration In a related development, sources indicate that commercial license holders are steadily registering their beneficial owner data, with approximately 60% of the 226,938 licenses subject to disclosure having complied so far. The ministry aims to achieve 90% compliance by June, in line with recommendations from the International Financial Action Task Force (FATF) to strengthen Kuwait's anti-money laundering and counter-terrorism financing measures. To streamline the process, the ministry has added the "Actual Beneficiary Owner" service to the "Sahl Business" program, allowing users to complete the registration in clear, straightforward steps. This follows Al-Rai's March 16 report, which highlighted that 31,700 companies disclosed their beneficial owner information within just four days. Under Ministerial Resolution No. 16 of 2025, all entities registered with the Ministry of Commerce, including sole proprietorships and companies of any type, are required to disclose their beneficial owners. However, companies listed on the Kuwait Stock Exchange, foreign stock markets, and government-owned companies are exempt from this requirement. Key Perspectives - Conservative View: - The ministry lacks legal authority to unilaterally cancel licenses. - Legal and financial risks arising from unapproved cancellations. - License holder consent is a procedural necessity. - Supportive View: - Cancellation aligns with the Companies and Commercial Licensing Laws. - Addresses the issue of procedurally unrenewed licenses. - Reduces administrative strain from "actual beneficiary" registration demands.
TAG 91.1
15-02-2025
- Business
- TAG 91.1
UAE anti-money laundering committee receives 8k questionnaires
The submission of more than 8,000 questionnaires reflects the private sector's active engagement with risks related to money laundering and terrorist financing says a leading UAE figurehead. Secretary-General and Vice Chairman of the UAE National Anti-Money Laundering and Combatting Financing of Terrorism and Financing of Illegal Organisations Committee (NAMLCFTC) Hamid AlZaabi, said that private sector and financial institutions are considered key partners in delivering the UAE's AML/CFT programme and completing the National Risk Assessment (NRA) process. AlZaabi noted that the reports submitted by financial and non-financial institutions, as well as the private sector, witnessed a 26 per cent increase in the year 2024, reflecting the strengthening of collective understanding of these risks. He stated that the UAE's NRA led to significant legal amendments, including the 2024 update to the UAE's Anti-Money Laundering Law, to address evolving financial crime trends. AlZaabi also noted that virtual assets remain a high-risk category globally and that the UAE continues to enhance its financial sector's performance through deep and comprehensive risk understanding. 'This ongoing effort strengthens the country's ability to adapt to future financial challenges.' The previous NRA played a key role in advancing progress in 2024 in this regard, culminating in the launch of the National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing for 2024-27. The strategy outlines 11 primary objectives, 200 sub-goals, and over 1,000 initiatives aimed at achieving its targets by 2027, reinforcing the UAE's global leadership in this field, he added. AlZaabi reaffirmed the UAE's commitment to updating national regulations and policies to align with international best practices, ensuring readiness for the International Financial Action Task Force (FATF) mutual evaluation, which will start at the end of the year. He further highlighted that these efforts have led to continuous policy and legislative updates, helping maintain the stability of both the national and global financial systems. The UAE, he stressed, remains proactive in addressing emerging challenges and strengthening its position as a global leader in combating financial and economic crimes.
Dubai Eye
15-02-2025
- Business
- Dubai Eye
UAE anti-money laundering committee receives 8k questionnaires
The submission of more than 8,000 questionnaires reflects the private sector's active engagement with risks related to money laundering and terrorist financing says a leading UAE figurehead. Secretary-General and Vice Chairman of the UAE National Anti-Money Laundering and Combatting Financing of Terrorism and Financing of Illegal Organisations Committee (NAMLCFTC) Hamid AlZaabi, said that private sector and financial institutions are considered key partners in delivering the UAE's AML/CFT programme and completing the National Risk Assessment (NRA) process. AlZaabi noted that the reports submitted by financial and non-financial institutions, as well as the private sector, witnessed a 26 per cent increase in the year 2024, reflecting the strengthening of collective understanding of these risks. He stated that the UAE's NRA led to significant legal amendments, including the 2024 update to the UAE's Anti-Money Laundering Law, to address evolving financial crime trends. AlZaabi also noted that virtual assets remain a high-risk category globally and that the UAE continues to enhance its financial sector's performance through deep and comprehensive risk understanding. 'This ongoing effort strengthens the country's ability to adapt to future financial challenges.' The previous NRA played a key role in advancing progress in 2024 in this regard, culminating in the launch of the National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing for 2024-27. The strategy outlines 11 primary objectives, 200 sub-goals, and over 1,000 initiatives aimed at achieving its targets by 2027, reinforcing the UAE's global leadership in this field, he added. AlZaabi reaffirmed the UAE's commitment to updating national regulations and policies to align with international best practices, ensuring readiness for the International Financial Action Task Force (FATF) mutual evaluation, which will start at the end of the year. He further highlighted that these efforts have led to continuous policy and legislative updates, helping maintain the stability of both the national and global financial systems. The UAE, he stressed, remains proactive in addressing emerging challenges and strengthening its position as a global leader in combating financial and economic crimes. AlZaabi continued, 'The strategy goes beyond legal aspects, encompassing economic, security, and media dimensions, as well as capacity-building efforts.''
