Payment systems oversight is a function of the CBK, through which it strives to bolster the systems’ safety and efficiency through monitoring existing as well as proposed and planned systems in light of the objectives for their establishment, and through which it also effects changes, wherever and whenever needed, according to specific protocols and in harmony with the Principles for Financial Market Infrastructures (PFMIs) of the Bank for International Settlements. The CBK also specifies strategies for payment systems and takes measures towards follow-up, oversight, and supervision related to Kuwait’s Automated Settlement System for Inter-participant Payments (KASSIP) and to Kuwait Electronic Cheque Clearing System (KECCS), where internal review as well as external examination operations are performed.
Internal reviews are planned periodically throughout the year and involve different types of internal reviews; reviews on participant performance, reviews on operations performance, reviews on risk management, etc. Different types of reviews are planned regularly to guarantee continuous monitoring over payment systems operations.
In addition to oversight functions in light of the above, the issue of Law No.20 of 2014 concerning electronic transactions lent added support to CBK efforts in this area. The law granted the CBK complete oversight and monitoring privileges on electronic payment of funds, as well as the authority to issue binding regulations in this field. The Instructions for Regulation of the Electronic Payment of Funds were issued and entered effect as of date of publication in the official gazette on 30 September, 2018 to bolster the CBK’s oversight system relative to payment systems.