The Central Bank of Kuwait has issued a circular to all local banks outlining new financial limits for bank cards and payment transactions.
In a circular obtained by Al-Anba, the Central Bank of Kuwait urged local banks to regulate financial transactions conducted through websites using bank cards, particularly those that do not require a one-time verification code (OTP). The Central Bank instructed all banks to set a conservative daily limit on both the total value and the number of transactions that can be made in a single day.
The Central Bank urged banks to establish a mechanism, either through branches or electronic banking services that allows customers to select and modify the transaction limits for payments made with bank cards across various channels. This system should be tailored to each customer’s classification at the bank.
Additionally, banks must notify customers of any modifications made and seek approval from the Central Bank of Kuwait before implementing these changes.
The Central Bank emphasized that these instructions are part of its commitment to strengthening effective oversight and improving internal control systems at banks.
They also aim to enhance security measures for payment transactions across all types of bank cards, including ATM cards, credit cards, and prepaid cards. Banks are required to implement conservative controls on payment transactions to safeguard against potential security risks.
The Central Bank highlighted the importance of adhering to regulations for electronic money payment activities, which require banks to develop comprehensive policies, procedures, systems, and controls aimed at detecting fraud.
Importantly, the Central Bank also emphasized the need for banks to establish a mechanism for addressing fraudulent activities and to notify the relevant authorities of any fraud cases or reports. These notifications must be provided regularly, following the specified format and timeframes determined by the Central Bank.
The Central Bank has mandated that all banks comply with the provisions outlined in the circular and requested that they submit a timeline for implementing the necessary changes to meet the new requirements.
