Kuwait: Central Bank Enforces New Security Measures on Bank Card Transactions
Arab Times, 5 January 2025: The Central Bank of Kuwait has issued a directive to local banks to impose financial limits on bank cards and payment operations.
This move aims to enhance security and regulatory controls.
The directive emphasises the need for banks to manage transactions conducted through websites, especially those not requiring a one-time password (OTP), by setting conservative daily limits on both the total value and number of such transactions.
Banks are instructed to create a mechanism, accessible through branches or electronic banking services, allowing customers to adjust their bank card payment limits.
This system should be personalised to each customer’s profile, with notifications for any changes made.
Additionally, banks must seek approval from the Central Bank for these adjustments.
The Central Bank’s directive is part of its ongoing efforts to bolster regulatory controls, improve internal systems, and enhance security measures for all bank cards, including ATM, credit, and prepaid cards.
Banks are required to implement stringent controls on payment operations to ensure security.
Furthermore, the Central Bank stresses the importance of complying with regulations for electronic money payments.
This includes developing policies and systems to detect and address fraud, with mechanisms for reporting fraudulent activities to relevant authorities.
Banks must provide continuous updates on fraud cases as specified by the Central Bank.
Compliance with these instructions is mandatory, and banks are required to submit a detailed timeline for implementing these new requirements.
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