Arab Times, 16 June 2025: The Central Bank of Kuwait (CBK) issued a comprehensive directive, tightening rules for electronic payment service providers to strengthen oversight and governance within the digital payments sector.

The regulatory circular, referring specifically to the existing framework supported by Article 85 of Kuwait Law No. 32/1968, aimed to increase operational oversight and enhance risk management for electronic payment service providers, electronic money institutions, and payment system operators in Kuwait.

The impacted parties include all entities involved in the provision of electronic payment services in Kuwait. Providers must ensure the accuracy and validity of documentation processed via the Electronic Payment Services Gateway System, with violations potentially incurring penalties under the law. Legal representatives or officially authorised personnel must manage submissions, with the CBK pre-emptively informed of any changes or authorisations.

Key legal requirements of the CBK’s Electronic Payment Business Regulations include adopting strict governance policies and enhanced oversight mechanisms. Providers must comply with Anti-Money Laundering and Counter-Terrorist Financing measures. Firms must inform the CBK of authorised user resignations and conduct annual reviews to ensure board members meet solvency and competence standards.

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