Kuwait sets new rule for all online overseas money transfers

KUWAIT CITY: The Central Bank of Kuwait has directed exchange companies to use the Kuwait Mobile ID application to verify customers for all online overseas money transfers.

The move is aimed at strengthening cybersecurity and improving transparency across the financial system.

According to Arab Times Online, the new regulatory requirement obliges exchange firms to verify customer identities through the application and document each authentication process, ensuring that the individual initiating a transaction is the legitimate account holder.

The step is intended to curb fraud and prevent unauthorized withdrawals that may occur through compromised applications or identity theft.

The initiative aligns with Kuwait’s broader push toward financial digitization, reinforcing secure digital infrastructure and expanding the use of advanced verification tools.

By integrating the Kuwait Mobile ID app into transfer processes, authorities aim to provide greater assurance to customers, financial institutions, and regulators that transactions are conducted safely and legitimately.

Officials noted that the app enables citizens and expatriates to access services securely without the need for physical civil ID cards. It offers features such as digital signatures, identity verification, and secure document storage.

Its use in financial transfers is expected to significantly reduce risks associated with cyberattacks and fraudulent activities.

The new framework also requires exchange companies to establish electronic links with the Public Authority for Civil Information to activate authentication services. While major exchange firms are already equipped with such systems, others are upgrading their platforms to comply within the regulatory timeline.

Authorities emphasized that the move will improve governance and oversight of outbound financial transactions and support Kuwait’s ongoing digital transformation, as financial applications become increasingly central to banking and remittance services.