Regulatory Alerts2019-12-17
Prohibiting Seizure of Agricultural Subsidies
The Saudi Arabian Monetary Authority (SAMA) confirms that agricultural subsidy amounts credited to bank accounts under court-ordered execution are exempt from seizure, in accordance with Article 21 of the Execution Law. Banks must apply designated SARIE system codes (AGR in field 26T and AGRSUBSIDY/ in field 70) to accurately identify these protected transfers, while beneficiaries may request the release of pre-existing deposits upon submitting supporting documentation. This directive takes immediate effect and applies to all financial institutions operating within the Kingdom.
In the Name of Allah, the Most Gracious, the Most Merciful
Saudi Arabian Monetary Authority Headquarters
Banking Policies Department
Ref. No.: 41027511 Date: 20/04/1441 Attachments: None
Circular
To: Respected Banks and Financial Institutions, Peace, mercy, and blessings of Allah be upon you,
Subject: Prohibition of Seizure on Agricultural Subsidy Amounts.
The Authority wishes to inform you of the receipt of a telegram from His Excellency the Minister of Justice, stating that agricultural subsidy amounts are not subject to seizure in bank accounts held under court orders. As these subsidies fall under the government subsidies covered by Article 21 of the Execution Law,
Accordingly, the Authority confirms to all banks and financial institutions operating in the Kingdom that agricultural subsidy amounts credited to the accounts of the executed party (held under court orders) are not subject to seizure. Please note that a specific tariff code has been designated: (Code (AGR) in field 26T and code AGRSUBSIDY/ in field 70) for payments issued from agricultural subsidy program accounts executed via the SARIE system, enabling banks and financial institutions to identify these transfers and distinguish them from other remittances.
Furthermore, we hope to enable beneficiaries of agricultural subsidy amounts deposited in their accounts prior to the issuance of these instructions, upon their request and after submitting supporting documents.
For your information and action, effective from the date hereof.
Yours sincerely,
Fahd bin Ibrahim Al-Shathri Deputy Governor for Supervision
Distribution Scope:
- Banks and financial institutions operating in the Kingdom.
P.O. Box 2992, Riyadh 11169 | Telex Address: MARKAZI | Telex No.: 404400 | Tel: 4633000 | Fax: 4662414