KUWAIT CITY, Jan 5: The Central Bank of Kuwait has issued a circular to all local banks regarding financial limits on bank cards and payment operations. In the circular, the Central Bank urged local banks to control financial transactions conducted through websites using bank cards, particularly those that do not require the entry of a one-time password (OTP), by setting a conservative daily limit on both the total value and the number of such transactions. The Central Bank has also instructed banks to establish a mechanism, either through branches or electronic banking services, that allows customers to select and adjust the payment limits on their bank cards. This mechanism should be tailored to each customer’s profile at their bank, and the customer should be notified of any changes made.

Also, banks are required to seek approval from the Central Bank of Kuwait for these adjustments. The Central Bank stated in its circular that these instructions are part of its ongoing efforts to strengthen regulatory controls, enhance internal control systems within banks, and improve security measures related to payment operations using all bank cards, including ATM cards, credit cards, and prepaid cards. Banks are required to implement conservative controls on payment operations to ensure security.

The Central Bank affirmed the importance of adhering to regulations governing electronic money payment operations. These include developing the necessary policies, procedures, systems, and controls to detect fraud, as well as establishing mechanisms for addressing fraudulent activities and reporting them to the relevant authorities. Banks are expected to provide continuous updates on fraud cases as specified by the Central Bank. The Central Bank has made it mandatory for banks to comply with the instructions outlined in the circular and has requested that they submit a detailed timeline for meeting these new requirements.