Kuwait Banks Face New Electronic Payment Regulations

The Central Bank of Kuwait has introduced updated regulations governing electronic payment service providers, electronic money service providers, and local banks. The new guidelines, issued in May 2023, aim to enhance compliance with existing law No. 20 of 2014 on Electronic Transactions.

Key Requirements for E-Payment Service Providers

To operate in Kuwait, e-payment service providers (EPSPs), electronic money service providers (EMSPs), and local banks must register with the Central Bank’s Register, which contains basic company information and other details to be defined by the bank. EPSPs and EMSPs must also submit additional documents, including:

A letter of guarantee from a local bank
Memorandum and Articles of Association, Commercial Registration, and audited financial statements for three years
Corporate governance structure and anti-money laundering (AML) plan
Customer protection, data protection, and security threat plans
Risk management framework and accounting system documentation

Registration Process for E-Payment Service Providers

The registration process involves four steps:

Submit the registration form electronically with all required documents.
Receive an initial approval valid for six months from the Central Bank.
Complete the registration documents as per section 2 of the guidelines.
Receive the final decision on approval or rejection from the Central Bank.

Expert Guidance from KPMG Kuwait

KPMG Kuwait provides specialized services to help e-commerce and fintech companies navigate these new regulations, including:

Business plan development
Market assessment
Financial feasibility studies
Valuation
Transaction services
Sell-side/buy-side advisory
Restructuring
Internal audit services
Anti-money laundering (AML) and CFT policy & procedure manual
Information technology policy & procedure manual
Readiness assessment

Contact KPMG Kuwait for expert guidance on electronic payment regulations in Kuwait.