Regulatory Alerts2021-06-27
Rules for Dealing with E-Commerce Payment Service and Support Providers
The Saudi Central Bank (SAMA) issued this circular to clarify the regulatory framework for e-commerce payment service and support providers, distinguishing between licensed payment services requiring escrow accounts and unlicensed technical connection services that only need Saudi Payments approvals. The directive mandates that banks and financial institutions exclusively transact with licensed payment providers while permitting contracts with technical support companies, provided they hold valid Saudi Payments approvals and comply with third-party outsourcing rules. Effective January 1, 2027, regulated entities must notify SAMA of any unlicensed payment activities and submit their adopted procedures to the Payment Systems and Companies Supervision Department.