KUWAIT CITY, Aug 31: After more than five months of suspension, the fate of bank prize draws in Kuwait remains uncertain, caught in a regulatory tug-of-war between the Central Bank of Kuwait (CBK) and the Ministry of Commerce and Industry (MoCI).

The CBK recently issued a directive allowing banks to resume all types of customer prize draws — provided they first obtain a license from the Ministry of Commerce. However, Commerce Minister Khalifa Al-Ajeel has insisted that his ministry has no jurisdiction over banking draws, leaving the process in limbo.

Banking sources stated that immediately after the CBK’s circular, several banks approached the Ministry of Commerce to request licenses. Ministry officials, however, declined to issue them, citing a lack of authority. This deadlock has left banks unable to proceed with their prize draws until a clear legal and regulatory resolution is reached.

The CBK’s conditions for reinstating prize draws are extensive. They include appointing an independent external auditor to supervise the draws, review their technical mechanisms, and ensure transparency in distributing prizes. A technical advisor would also be engaged to standardize draw criteria across banks. Internal audit units within each bank are required to monitor the draws, while external auditors conduct additional oversight. The names of winners must be announced immediately across all available communication channels.

Minister Al-Ajeel has repeatedly argued that bank draws fall exclusively under the oversight of the CBK, not the Ministry of Commerce. He has formally communicated this stance to the Central Bank, citing several legal points:

Al-Ajeel emphasized that since banks fall under the CBK’s regulatory framework, it is the Central Bank that must resolve all issues related to bank prize draws. The Ministry, he stressed, cannot issue licenses for such activities.

The minister further highlighted that the legislature entrusted the CBK with regulating credit policy, monitoring the banking system, and safeguarding the national economy. The Central Bank, therefore, has both the authority and the responsibility to oversee prize draws conducted by banks.

Meanwhile, the Ministry of Commerce continues to regulate promotional raffles, offers, and consumer-related marketing activities in the non-banking sector, under the Trade Law (1980) and the Consumer Protection Law (2014).

With more than five months of suspended prize draws, customers are raising questions about the fate of their entitlements. According to banking officials, one option under study is to consolidate all delayed draws and hold them simultaneously. This would cover all categories — daily, weekly, monthly, quarterly, and semi-annual — in a transparent process monitored by auditors.

Banks are considering whether to conduct the consolidated draws in a single day or spread them over several days, depending on technical and logistical feasibility.

Industry sources estimate that nearly 3 billion Kuwaiti dinars are currently deposited in prize draw accounts across local banks. The amounts vary depending on each bank’s market share and its expansion strategy in offering such products.

Until consensus is reached between the Central Bank and the Ministry of Commerce, the suspension will remain in place — leaving both customers and banks waiting for clarity on when Kuwait’s lucrative prize draw system will resume.