CBK tightens oversight as bank prize draws prepare to resume

Bank prize campaigns in Kuwait are set to resume soon after being suspended since last March, but under stricter regulatory oversight aimed at ensuring fairness, transparency and stronger governance.

The move follows the Ministry of Commerce and Industry’s recent announcement that it has resumed issuing licenses for promotional prize draws linked to certain banking products and accounts.

However, before banks can restart these activities, the Central Bank of Kuwait (CBK) is finalizing a comprehensive supervisory framework to regulate how such draws are conducted, reports Al-Rai daily.

According to informed sources, banks wishing to organize prize draws must first submit a detailed visual presentation to the Central Bank which must clearly identify all parties involved in managing the draw process — including responsible bank officials, the external audit firm overseeing the procedures, and the technical advisor tasked with monitoring the software used to select winners.

The software itself must comply with unified technical standards set by the CBK.

During these explanatory meetings, banks are required to outline their internal control mechanisms and provide technical guarantees demonstrating their readiness to conduct the draws with full transparency and procedural integrity. CBK officials review the proposals closely, raising questions on any unclear points and requesting additional clarification where needed.

If the Central Bank is satisfied with the safeguards presented, it grants approval, allowing the bank to apply to the Ministry of Commerce for the final license. Should concerns remain, banks must address gaps and strengthen their procedures before moving forward.

The Ministry of Commerce’s role, as previously clarified by Acting Undersecretary Marwa Al-Jaidan, is limited to issuing the license. The licensed bank bears full responsibility for the draw procedures and their outcomes in line with regulations set by the competent authorities. A prior approval letter from the Central Bank is a mandatory condition for obtaining the Ministry’s permit.

Sources indicated that the Central Bank’s primary objective is to close potential loopholes and prevent violations. Particular attention is being given to how external auditors verify the accuracy and integrity of customer data used in the draws.

Among the key concerns are the detection of duplicate participant names and the monitoring of first-degree relatives to prevent unfair advantages or repeated winnings through indirect means.

Auditors participating in the meetings said their approach includes taking samples from banks’ participant records, conducting cross-checks, and verifying both accounting and technical data to identify irregularities — whether accidental or intentional.

Regulatory discussions have also emphasized secure auditing of the chances granted to participants and winners. The scope of the external audit firm’s work is being expanded to include supervision of the winner-selection software itself.

This step ensures that the digital systems sorting names and allocating winning chances comply with CBK technical requirements and cannot be tampered with.

The unified governance and audit framework being implemented by the Central Bank aims to raise standards of integrity and fairness in bank prize campaigns and restore public confidence in these promotions.

With explanatory meetings already held and regulatory procedures nearing completion, the resumption of bank prize draws appears imminent — this time under tighter scrutiny designed to ensure that every draw is conducted transparently and on equal terms for all participants.