Kuwait says ‘My Identity’ authentication now mandatory for online money transfers
Central Bank tightens digital security rules for exchange companies; new regulation boosts financial safety and transparency in online transfers
As part of its push to expand financial digitalization, the Central Bank of Kuwait has directed exchange companies to adopt the My Identity application as a mandatory tool for verifying customer identities when conducting international money transfers online.
Under the new regulatory measure, exchange companies are required not only to authenticate customers through the app but also to document all verification procedures.
The move aims to enhance security and transparency across the financial transfer system, particularly for transactions executed via digital platforms, reports Al-Rai daily.
Sources said the requirement aligns with the government’s broader strategy to promote financial digitization while strengthening safeguards against fraud.
The use of “My Identity” is expected to provide an additional layer of protection against unauthorized transactions, including cases where electronic applications may be exploited to transfer funds without the account holder’s knowledge.
The sources explained that activating authentication through the app ensures that all parties involved, the customer, the transferring entity, and regulatory authorities, can verify that the individual executing the transaction is the legitimate account holder, rather than a fraudster impersonating user data.
They noted that digital financial applications have significantly transformed how customers manage their money, offering fast and convenient access to services anytime and from anywhere.
However, this shift also requires stronger precautionary measures, particularly for online transfers, making identity verification through “My Identity” essential.
The application enables citizens and residents to securely access both government and private sector services without the need to carry a physical civil ID. It offers features such as identity verification, digital signatures, electronic authentication, a digital document wallet, and a digital version of the civil ID card.
The new requirement is also expected to support the expansion of Kuwait’s digital infrastructure and enhance the reliability of financial transactions, reducing risks associated with cybersecurity breaches amid the rapid growth of digital services.
To implement the measure, all financial transfer service providers must establish electronic integration with the Public Authority for Civil Information to enable “My Identity” authentication.
While major exchange companies are already linked to the authority, others will need to upgrade their technical systems and complete integration within the timeframe set by the Central Bank, which will oversee compliance across the sector.
