Financial Crime World

Title: Kuwait Central Bank’s New Regulations for E-Payment and Fintech Industry

Overview

The Central Bank of Kuwait (CBK) has recently overhauled its financial regulations to accommodate the electronic payment, settlement, and storage of funds industry. The new regulations, outline in Resolution No. 45/471/2023, replace the earlier regulations under Resolution No. 44/430 of 2018.

Scope and Reach

The updated regulations apply to:

  • Banks
  • Fintech start-ups
  • E-wallet providers
  • Online retailers
  • E-commerce platforms

While some conventional banking and transactional activities are excluded, the new regulations exted to an array of formerly unregulated areas.

New Frontiers

Classification of Licensable Activities

CBK has introduced licensable activities classified as:

  • E-payment
  • E-money
  • E-payment service operations
  • Buy Now Pay Later services

Buy Now Pay Later Services

For the first time, CBK has established regulations governing Buy Now Pay Later services. This development opens doors for Kuwaiti businesses, including retailers and e-commerce platforms, to offer products on installment plans to Kuwaiti consumers.

Eased Route to Licensing

  • Previously, entities wishing to be independently licensed as e-payment service providers had to be large shareholding companies authorized by the CBK for lending or currency exchange activities.
  • Small and medium enterprises could only secure licenses by acting as agents for such companies.
  • The new regulations liberate the path for start-ups, enabling them to obtain licenses independently.

Strengthened Compliance Framework

Compliance Requirements

CBK has bolstered the regulatory framework on:

  • Corporate governance
  • Risk management
  • Anti-money laundering and terrorist financing
  • Cybersecurity
  • Business continuity
  • Consumer protection
  • Data privacy

Al Tamimi & Company: Your Partner in Compliance

For businesses seeking guidance on the new CBK e-payment regulations, Al Tamimi & Company is available to support your licensing and compliance needs. We can help you navigate how these regulations apply to your specific business. Contact Omar Handoush or Yousef Alshereedah for further assistance.

Subheadings

  1. Overview
  2. Scope and Reach
  3. New Frontiers
  4. Eased Route to Licensing
  5. Strengthened Compliance Framework
  6. Al Tamimi & Company: Your Partner in Compliance

Bullet Points

  • The Central Bank of Kuwait (CBK) has recently updated its financial regulations to accommodate the electronic payment industry.
  • The new regulations apply to banks, fintech start-ups, e-wallet providers, online retailers, and e-commerce platforms.
  • CBK has introduced licensable activities like: e-payment, e-money, e-payment service operations, and Buy Now Pay Later services.
  • The new regulations open doors for Buy Now Pay Later services for Kuwaiti businesses.
  • Previously, entities wishing to be independently licensed as e-payment service providers had to be large shareholding companies.
  • The new regulations enable start-ups to obtain licenses independently.
  • CBK has strengthened the regulatory framework on corporate governance, anti-money laundering, cybersecurity, and consumer protection.
  • Al Tamimi & Company is available to support your licensing and compliance needs regarding the new CBK e-payment regulations.