Kuwait’s Central Bank sets new low transfer limits to prevent fraud

• “Links,” “WAMD,” and all banks’ financial transfer apps will remain active, with the only change being the removal of higher transfer ceilings, now set only upon customer request.

“There is no maximum limit for after-day money transfers, which will vary between banks. This broad policy will apply to transfers made through financial links, mobile money services, and instant payment apps like ‘WAMD.’ The Central Bank of Kuwait has recently updated the procedures for this sector.”

In this regard, Al-Rai newspaper learned from informed sources that the Central Bank of Kuwait has instructed banks not to set varying withdrawal limits for link payments or through ‘WAMD,’ as is currently the case.

The sources stated that the growing demand from customers for ‘link’ transfers in recent months has prompted several banks to increase transfer limits, which now vary from one bank to another.

Some banks set a maximum daily limit of 1,000 dinars per transaction, while others exceed this amount, with limits reaching up to 3,000 dinars per day, and in some cases, up to 10,000 dinars as the total monthly transfer limit per customer.

The sources indicated that the regulator has requested banks not to rely on non-standardized limits with varying maximums, meaning banks must discontinue setting higher limits for these transactions, whether they are conducted at the bank itself or from a customer’s account in another bank.

It was also pointed out that the bank had previously doubled the upper limit for instant money transfers to individuals, asserting that the sender’s payments are determined by the source and are therefore considered low-risk.

The sources clarified that the new instructions apply only to individual transfers. The limits for settling financial payments for medium and large institutions and companies will remain unchanged for now, given their distinct needs for financial settlements.

Regarding the need for some customers to raise the maximum transfer limits via ‘links’ or ‘WAMD,’ whether daily or monthly, the Central Bank stated that customers may apply through the app to request this, specifying the maximum limit they wish to set for their transactions. However, the implementation must comply with the regulatory guidelines.

If no request is made by the customer, there is no need to set a maximum limit for their financial transfers, and they must adhere to the standardized low limits set by the bank for these transactions.

The sources pointed out that, according to the bank’s guidelines, the minimum amount for money transfers executed through ‘links,’ ‘WAMD,’ or other financial transfer applications will be open-ended in terms of value, set at the lowest possible rate. Accordingly, banks will continue to allow these transfers to be made starting from one dinar per transaction, without any changes.

The sources also indicated that the regulations will help the regulator enhance its capabilities to combat hacking operations, which often use electronic financial transfers as a major gateway for their activities.

They emphasized that ‘links,’ ‘WAMD,’ and all banks’ financial transfer applications will remain active, with the only change being the abandonment of setting higher differential ceilings for these transfers. These ceilings will no longer be set unless requested by the customer.