Kuwait’s Central Bank Introduces Seven Rules to Strengthen Fairness in Bank Prize Draws

The Central Bank of Kuwait (CBK) has issued a set of seven regulatory guidelines for local banks to govern prize-based draws, reinforcing transparency and ensuring fair practices in promotional banking activities.

The move follows a March directive that temporarily suspended such draws pending a comprehensive re-evaluation. According to the CBK circular, the resumption of draws now requires prior authorization from the Ministry of Commerce and Industry, in line with Law No. 2 of 1995 on the regulation and supervision of advertising and promotional campaigns.

The new framework is designed to safeguard governance standards and bolster customer trust, particularly as these draws are often linked to banking products and services.

Under the updated regulations, banks must:

1. Rotate audit firms overseeing draw operations on customer accounts.

2. Ensure the external audit office reviews all draws, irrespective of prize value.

3. Include technical oversight of draw software, standardized through an independent technical consultant.

4. Engage a separate audit firm to supervise draw processes, rotated periodically as guided by the Ministry of Commerce and Industry.

5. Require the internal audit department to independently review draw operations, incorporating them into the bank’s annual audit plan.

6. Provide live automated coverage of draw events and publish winners’ names across websites, social media, and other media outlets.

7. Maintain detailed records of draw results for future verification.

By introducing these measures, the CBK seeks to enhance integrity, protect customers, and ensure that promotional draws remain transparent and accountable within the banking sector.