Press Releases
CBK Issues New Instructions Regulating the Electronic Payments of Funds
In line with the Central Bank of Kuwait’s (CBK) strategy to maintain a strong advanced financial system and encourage emerging technologies in the field of electronic payment; and with the mandate granted by the Law No. 20 of 2014 on electronic transactions, which gave CBK the authority of oversight and regulation of the electronic payments of funds, and to issue binding instructions in this regard.
The Central Bank of Kuwait has issued an updated version of the Instructions for Regulating the Electronic Payment of Funds - May 2023. The instructions were first issued in 2018. A draft of the updated instructions was made public in early 2022 and a round of public consultations with stakeholders on the draft instructions followed.
In a statement, the Central Bank of Kuwait indicated that these instructions outlined the mandatory requirements that must be met by existing and new financial firms to practice the activity of electronic payment or electronic money, or to operate electronic payment systems according to five types of licenses differing as per the size and nature of the activity. With the goal of enhancing the safety and stability of payment systems in the State of Kuwait, the instructions spell out the regulatory requirements and controls that must be adhered to by those institutions. These include governance, a risk management framework, combating money laundering and terrorist financing, cyber security, business continuity and customer protection.
The instructions will also include a new activity of “Buy Now Pay Later” (BNPL) services within the supervisory and regulatory framework to ensure that necessary measures are in place to protect customers.
