Online remittance transfer cap reduced by 75%

Money exchange companies have reduced the maximum limit for personal financial transfers executed by customers through their mobile applications to 3,000 Kuwaiti dinars per transaction per day, down from a previous cap of 10,000 dinars, while other companies have lowered the limit to 2,500 dinars.

This represents a reduction in the allowed online transfer limits by between 70 and 75 percent, a move that is part of a package of regulatory and operational measures aimed at strengthening financial oversight and raising security and compliance standards in money transfer operations through digital channels.

The move comes amid the significant expansion in the use of money exchange applications and intensifying competition among companies to attract customers and facilitate transfers. This has highlighted the need to tighten regulatory and operational controls governing electronic transfers, thereby reducing the risks of financial fraud and customer data theft, and closing channels that could be exploited for money laundering or the processing of illegal transfers.

Concurrently with the reduction in transfer caps, money exchange companies have strengthened verification procedures regarding the purpose of transfers and supporting documents, as well as confirming the identity of the customer, the ultimate beneficiary, and the flow of funds. These measures aim to enhance the efficiency of monitoring processes and improve the transparency of transfers.

The new limits apply to all personal transfers executed by customers through electronic applications, whether they are citizens or residents. No similar restrictions apply to transfers conducted in person at money exchange company branches, where higher amounts can be transferred after fulfilling verification and compliance requirements.

In-branch transactions allow company officials to verify that the transfer requester is the owner of the bank account and the source of funds, match their identity and documents, and confirm the purpose of the transfer and the beneficiary entity. This reduces the likelihood of accounts or applications being compromised or their owners’ identities being impersonated.