The Central Bank of Kuwait (CBK) has promulgated the “Instructions for Regulating the Electronic Payment of Funds” in May 2023, an update to the previous regulations that was issued in 2018, under the umbrella of “Law No. 20 of 2014 for The Electronic Transactions”, that entrusts the CBK with full oversight and supervision of the electronic payment transactions, in addition to the authority to issue binding instructions in this regard.
The updated regulations aim to keep pace with the advancement in the field of electronic payments and provide the necessary regulatory and organizational frameworks, in addition, it provides direct supervision and oversight of the CBK in order to enable financial institutions operating in this field.
Furthermore, the updated regulations state requirements for both existing and emerging electronic payment services providers under five types of licenses that correspond to volume and nature of the service provided. This includes the binding regulatory requirements and controls for conducting the activity including governance, overall framework for risk management, anti-money laundering and counter-financing terrorism, cybersecurity, business continuity, and protecting customers’ rights, to ensure the safety and stability of the payment system in Kuwait.