Regulatory Alerts2020-10-05
Acceptance of primary and final guarantees via the Etimad platform
SAMA mandates the implementation of Minister of Finance Decision No. 3555 for preliminary and final guarantees submitted via the Etimad platform. All such guarantees must incorporate an unconditional and irrevocable clause that prevents release or disposal without written consent or upon expiration. This requirement applies to requests delivered through direct or electronic channels, standardizing guarantee management for competitors.
Translated Document
In reference to Minister of Finance Decision No. (3555) dated 16/08/1441 H concerning the acceptance of the preliminary or final guarantee submitted by the competitor through the Electronic Portal (Etimad Platform) in accordance with specific regulations. This includes what is stipulated in paragraph (1) of item (First), which states: "The preliminary or final guarantee must include the following clause: 'We hereby unconditionally and irrevocably undertake that this guarantee shall not be released or disposed of upon the client's request or by submitting the original guarantee to us, except after obtaining your written consent or upon its expiration without a written request for extension from you, delivered to us either directly or through electronic means.'" SAMA would like to confirm the implementation of the provisions of paragraph (1) of item (First) mentioned in the above Minister of Finance Decision.
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