In a decisive move against financial misconduct, Kuwait’s Disciplinary Board of the Competition Protection Authority has levied substantial fines on 16 out of 20 currency exchange companies. These companies were found guilty of breaching regulations by colluding to set foreign currency exchange rates in unison—a practice the Authority deems detrimental to competitive integrity.
The fines, which vary between 1% and 5% of each firm’s total revenue from fiscal years 2020 to 2022, reflect the severity of the infractions. The penalties come after an in-depth investigation revealed that these firms engaged in collusion to manipulate exchange rates, undermining fair market practices.
In 2023, the 32 exchange companies under the Central Bank of Kuwait’s oversight generated revenues of around 80.15 million dinars, with substantial contributions from currency sales, other revenues, and bank interest. Their combined net profits for the year stood at 43.08 million dinars. Additionally, the Ministry of Commerce and Industry supervises approximately 105 banking institutions.
The fines were sanctioned following an examination of the companies’ practices in relation to Chapter Two, Article 5 of the Competition Protection Law, which forbids agreements that disrupt competitive pricing. The investigation concluded that the firms’ coordinated efforts to fix currency prices constituted a monopolistic practice, adversely affecting service quality and market competitiveness. This crackdown aligns with the Authority’s ongoing mission to uphold market integrity and discourage anti-competitive behavior.
