The Central Bank of Kuwait (CBK) has finalized a framework enabling local banks to share customer data securely with authorized open banking providers, subject to explicit customer consent. This follows consultation on the draft published in June 2025 and accompanies an update to the 2023 electronic payment instructions. The framework covers account information services, supporting consolidated account views and spending analysis, and payment initiation services, allowing customers to issue payment orders through authorized providers. The updated instructions prohibit provision of the regulated services across borders and outward remittances.
Dedicated open banking providers must be joint stock companies registered with the CBK. They must maintain minimum capital of KWD 100,000 for account information services or KWD 500,000 for payment initiation services, with the latter category permitted to offer either or both services. Local banks are exempt from registration. Customer consent must specify its purpose and duration and be revocable at any time without preconditions. Data holders and authorized providers must comply with requirements governing consent creation, verification, cancellation and renewed authentication, alongside technical specifications for application programming interfaces. Open banking providers must also establish independent control functions and audit and risk committees.