Kuwait Central Bank Sets New Rules for OTP-Free Transactions
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The Central Bank of Kuwait has introduced stricter guidelines for local banks to enhance the security of payment operations involving bank cards. These measures include setting conservative daily limits and improving fraud detection systems.
Stricter Limits on Online Transactions
Banks have been instructed to impose daily caps on the total value and number of online transactions made using bank cards, particularly those that do not require a one-time password (OTP). This step aims to minimize risks associated with unsecured payment methods.
Customizable Payment Limits
The Central Bank has also mandated that banks provide customers with tools to adjust payment limits on their cards. This feature, accessible through bank branches or online banking platforms, will be tailored to each customer’s profile. Customers must be notified of any changes to their card limits.
Strengthened Fraud Prevention
To combat fraud, banks are required to develop comprehensive policies and systems to detect and report fraudulent activities. They must establish mechanisms to address fraud cases and regularly update the Central Bank on these matters.
Regulatory Compliance
All local banks must comply with the new regulations and seek approval from the Central Bank for any adjustments. A detailed timeline for implementing these changes must also be submitted.