The Central Bank of Kuwait has instructed all exchange companies to use the My Identity application as a mandatory requirement for authenticating customers in online international money transfers. Under the directive, firms must verify identities through the app and maintain detailed records of every authentication process to ensure full compliance and traceability. This requirement forms part of broader measures to strengthen digital security, according to the central bank. The Central Bank of Kuwait further specified that all providers must complete electronic integration with the Public Authority for Civil Information within an established timeline set by regulators.
The My Identity app enables secure access to both government and private services without the need for physical documents, according to details released with the directive. Its functions encompass identity verification, digital signatures, authentication tools, an electronic wallet and a digital identification card. The Central Bank of Kuwait expects the system to deliver added protection against unauthorized transactions on digital platforms.
Kuwait has intensified regulatory oversight on money transfers to counter risks of fraud and financial crime, the Central Bank of Kuwait has stated in related instructions. Exchange companies must now require customers to prove the source of funds in certain cases, including when transfer amounts exceed income levels listed in their profiles or when transactions occur frequently, according to a Lexis Middle East review of the rules. The measures apply even to transfers drawn from personal bank balances.
These steps align with international standards promoted by the Financial Action Task Force to combat money laundering and terrorist financing, a Lexis Middle East assessment found. The Central Bank of Kuwait has separately ordered exchange firms to participate in centralized reporting of electronic fraud cases. Such actions build on earlier regulatory updates aimed at tightening controls across the financial sector.
Public Authority for Civil Information data reflects increasing adoption of digital services among Kuwait’s population, which has driven the update in authentication standards. The Central Bank of Kuwait enacted a digital banking law in 2022 that has supported wider rollout of secure online payment systems, according to a U.S. Trade and Development Agency country guide. Officials expect the My Identity integration to reduce instances of identity-related fraud in money transfers.
Kuwait’s central bank has maintained a consistent focus on cybersecurity and risk management in electronic payments over recent years, issuing multiple instructions to banks and exchange companies. The latest directive on the My Identity app extends those efforts by embedding advanced verification directly into routine transfer processes. Industry participants have begun implementing the changes to meet the compliance deadlines established by the Central Bank of Kuwait.
