Kuwait news: Open Banking and SWIFT transfers

Monday 28 November 2022 14:38 CET | News

Recently, the Central Bank of Kuwait has requested banks to update their plans for the implementation of the Open Banking Services project, according to  


Open Banking in Kuwait

Open Banking allows users to gain access to services for analysing transactions that take place on their accounts in various banks, in addition to the electronic payment service. According to relevant sources cited by Al-Rai, the regulator's request in this regard came in response to the measures taken by the banks to solicit technical and financial offers for the Open Banking project and study them from the technical and financial aspects in accordance with the specified evaluation criteria.

Following meetings held between bank representatives and the Central Bank's working group for Open Banking services, and between banks and Deloitte, the financial institutions agreed to assign Deloitte to the project. The Central Bank asked the banks to determine the appropriate governance policy for the project, as well as a monthly report on the measures taken according to the plan for the steps to implement the project, Al-Rai continues.

The Central Bank had previously agreed to test a product that operates within the Open Banking Services model within the experimental regulatory environment. This happened by applying it to banking transactions for a category of volunteer customers to fully evaluate it before it is finally launched in the local market. The product has entered the stage of initial market offering within the regulatory framework of the experimental regulatory environment and is considered the first of its kind in Kuwait, Al-Rai reports.

Al-Rai’s sources emphasised that the Central Bank is keen to support modern financial technologies and support Open Banking services, in a way that contributes to the development of advanced business models in the field of financial services.

On the other hand, the Central Bank announced the allocation of the latest issuance of bonds and securitisation to the Central Bank, with a total value of KWD 240 million (approximately USD 781 million) for a period of 3 months, with a return rate of 4.125 percent, Al-Rai concludes.

Kuwait banks to provide SWIFT money transfer for Egyptian expats

According to informed sources cited by Arab Times, major exchange companies in Kuwait have completed their preparations to provide a service for transferring the value of USD deposits to Egyptian residents who wish to export their cars to Cairo. They explained that the traditional online transfer system provided by exchange companies in Kuwait does not comply with the requirements of the law on customs exemption for cars of Egyptians abroad in exchange for a dollar deposit, as it requires that it be deposited through bank transfer only.

This is what prompted the companies to make the banking transfer service through the SWIFT system available for the Egyptians residing in Kuwait. The bank transfer process, which is compatible with the exemption law with exchange companies, is carried out with a fee of USD 35 (equivalent to about KWD 10.5) on the entire amount, whatever it is, and paid once. Some banks provide the service for free through their applications and with fees of up to KWD 8 through their branches without calculating the commission of the intermediary bank.

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Keywords: Open Banking, regulation, central bank, SWIFT
Categories: Banking & Fintech
Companies: Central Bank of Kuwait
Countries: Kuwait
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Banking & Fintech

Central Bank of Kuwait

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