Kuwait's Central Bank sets 7 rules for fair bank draws

01/09/2025

KUWAIT CITY, Sept 1: Following the circular issued in late March to postpone draws for re-evaluation, the Central Bank of Kuwait has set seven regulations for local banks to resume draws, reports Al-Seyassah daily. The daily obtained a copy of the circular, emphasizing that the regulations aim to enhance transparency and ensure the integrity of procedures, especially since some of these prizes are offered to customers as part of certain banking products.

In the circular, the Central Bank stated that after reviewing the evaluation results submitted by banks following the decision to postpone the draws in March to guarantee the implementation of governance rules, resuming the draws requires obtaining authorization from the Ministry of Commerce and Industry, in accordance with Law No. 2/1995 regarding the regulation and supervision of advertising and promotion of goods and services.

The circular obligates banks to follow these regulations:

1. Rotate the external audit office responsible for examining the draws conducted on customer accounts.

2. The external audit office shall review all draws conducted on customer accounts by the bank, regardless of the value of the draw prize.

3. The work of the external audit office shall include monitoring the software used to select winners, and standardize the technical requirements of these programs through the appointment of a technical consultant for these requirements.

4. An external audit office, other than the one assigned by the bank, shall be assigned to supervise the draw process, taking into account that it shall be rotated periodically in accordance with the vision of the Ministry of Commerce and Industry.

5. The internal audit department shall conduct an independent audit and examination of all draw operations conducted by the bank, including the annual internal audit plan for these operations.

6. Live automated coverage of the draw process, and publish the names of the winners of all draws on the website, social media and various media outlets.

7. Detailed records of the draw results should be maintained for reference when needed.