Regulatory Alerts2021-01-03
Companies and Institutions Must Not Be Required To Restore Revoked Commercial Registers
The Saudi Central Bank (SAMA) has issued a circular directing all domestic banks and commercial institutions to cease requiring companies and entities with revoked commercial registers to restore those registers before receiving financial dues. Under this directive, payments must be disbursed to the agent representing partners for companies or directly to the owner for institutions, with identity and partnership verification conducted through the Wathiq portal using the latest memorandum of association. This regulatory clarification immediately streamlines financial recovery processes by eliminating redundant register restoration requirements for all banking transactions involving revoked commercial entities.
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