MCI says Central Bank has final authority on oversight of bank prize draws

Minister of Commerce and Industry Khalifa Al-Ajeel has resolved the long-running dispute over which body regulates bank prize draws, confirming in a letter to the Central Bank of Kuwait that the matter falls within the latter’s jurisdiction.

He stressed that each authority maintains distinct oversight, depending on whether the draw is conducted by a bank or a non-bank entity.

Following the clarification, Commerce Ministry officials said they will no longer respond to banks’ inquiries regarding the regulation or resumption of prize draws, as these decisions rest solely with the Central Bank.

The ministry explained that it regulates promotional activities, raffles, and prize draws conducted by non-bank companies or individuals, in line with Commercial Law No. 68 of 1980, Consumer Protection Law No. 39 of 2014, and other relevant statutes.

By contrast, the Central Bank has exclusive authority over all banking-related activities, including prize draws run by banks, under Law No. 32 of 1968.

According to ministry officials, 10 legal provisions — spanning banking law, commercial law, and consumer protection legislation — affirm that the Central Bank has the power to set binding rules for banks, inspect them, and oversee both their financial and promotional practices.

This includes ensuring liquidity, solvency, and adherence to fair promotional standards.

While the Central Bank will supervise bank prize draws, the Commerce Ministry remains responsible for regulating similar promotional activities by non-bank commercial entities.

This includes licensing, monitoring compliance, preventing consumer deception, and enforcing transparency in advertising and offers.

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