Kuwait introduces ew rules announced for overseas money transfer

KUWAIT CITY: The Central Bank of Kuwait has ordered exchange companies to use the Kuwait Mobile ID application for customer identity verification during online international money transfers.

This measure aims to reduce fraud and improve operational transparency. The new regulation requires all exchange firms to authenticate customers through the Kuwait Mobile ID app before processing international remittances.

The verification process requires complete documentation to confirm that the person who starts the transaction actually owns the account.

The system prevents unauthorized transactions, which occur when hackers access accounts or when criminals steal credentials or commit identity theft.

Digital authentication tools have become essential because online financial transactions are increasing throughout the world. Exchange companies need to create electronic links with the Public Authority for Civil Information because this authority holds national identity data.

Major firms have developed systems that work with the new regulations, but smaller exchange companies must update their systems to meet the regulatory requirements before the deadline.

The Central Bank of Kuwait introduced its new regulation as part of a comprehensive financial regulation tightening process, which will affect all financial institutions in Kuwait during 2026.

The central bank reduced the daily cash transaction limit at exchange companies from KD 3,000 to KD 1,000, which forces customers to conduct larger transfers through banking channels instead of cash transactions.