Regulatory Alerts2021-05-04
Standards and Controls Regulating the Relation of Banks to Their Customers with Regard to the Extension of Banking Services
The Central Bank of Kuwait issued a comprehensive regulatory framework mandating local and foreign banks to operate under transparent customer relations, clear contractual obligations, and commensurate fee structures following the cancellation of maximum limits on banking service charges. Banks must ensure accurate pricing disclosure, provide customers with signed contract copies upon initiation or renewal, restrict cash and in-kind incentives tied to credit facilities, and maintain dedicated complaints units linked to an automated reporting system. The directives further standardize staff lending practices, govern account openings for non-Kuwaiti workers and government institutions, mandate smart card acceptance, and require continuous statistical reporting to enhance market competition and consumer protection.