KUWAIT - The Central Bank of Kuwait (CBK) has issued an updated version of the Instructions for Regulating the Electronic Payment of Funds, first issued in 2018, a draft of the updated instructions was made public in early 2022 and a round of public consultations with stakeholders on the draft instructions followed.
In a statement, CBK said Tuesday, that these instructions outlined the mandatory requirements that must be met by existing and new financial firms to practice the activity of electronic payment or electronic money, or to operate electronic payment systems according to five types of licenses.
This came in line with the CBK's strategy to maintain a strong advanced financial system and encourage emerging technologies in the field of electronic payment, and with the mandate granted by the Law No. 20 of 2014 on electronic transactions, which gave CBK the authority of oversight and regulation of the electronic payments of funds, and to issue binding instructions in this regard, it added.
The instructions spell out the regulatory requirements and controls that must be adhered to by those institutions. These include governance, a risk management framework, combating money laundering and terrorist financing, cyber security, business continuity and customer protection, the statement said.
The instructions will also include a new activity of Buy Now Pay Later (BNPL) services within the supervisory and regulatory framework to ensure that necessary measures are in place to protect customers.
The bank stressed its keenness to develop its instructions in a comprehensive way that takes into account all concerned parties and enhances the progress of the payment systems environment in order to achieve the interest of the national economy, improve macroeconomic performance and provide services within the framework of the financial inclusion policy.
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