In January 2022, the Central Bank of Kuwait (CBK) has suggested new draft guidelines (subject to approval*) towards regulating the electronic payments (e-payment) of funds in Kuwait. These guidance were first issued under Resolution No. 44/430 of 2018 Central Bank of Kuwait (CBK).
The instructions issued by the CBK shall be applied to electronic payment service providers (EPSPs)1, electronic money service providers (EMSPs)2, and all local banks. To perform any activity3, e-commerce and fintech businesses in Kuwait that have obtained an electronic payment gateway from an ESP need to register as an Agent4 with the ESPs, EMPs, and other local banks.
This would include e-commerce and fintech businesses in Kuwait that have obtained an electronic payment gateway from Service Providers (e.g. local banks). Such businesses would need to register as Agents with the Service Providers.
Note: Please note: The requirements are subject to change as per the Central Bank of Kuwait's evolving guidelines and can also vary depending on the sponsoring bank's policies.
- E-Payment Service Provider (EPSP): Any company registered in the registry to conduct electronic payment in the State of Kuwait in accordance with these instructions.
- E-Money Service Provider (EMSP): Any company registered in the registry to conduct electronic payment and electronic money in the State of Kuwait in accordance with these instructions
- Activity: Electronic payment and electronic money.
- Agents: any financial institution with the status of a shareholding company or with limited liability included in the Register to carry out all or some of aspects of the activity.
*CBK reserves the right to make any addition, deletion, or update on the guidelines. The draft guidelines are subject to approval from the Central Bank of Kuwait. Please refer to the CBK website for the latest update on the guidelines.
