Regulatory Alerts2020-02-02
Enabling Bankruptcy Trustees to Exercise Their Powers Granted Under the Bankruptcy Law and Its Executive Regulations
The Saudi Central Bank issued this circular to direct operating banks to fully enable bankruptcy trustees to access debtor bank account information, execute transactions, and manage accounts during financial reorganization or liquidation. The directive mandates banks to immediately suspend claims and freeze orders against debtors upon receiving trustee requests or official court notifications, adhering strictly to specified suspension periods and applicable banking rules. Banks are further required to verify trustees' court-granted authorities, comply with liquidation account opening and transaction suspension rules, and implement these measures across all branches effective immediately.
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