LogoRegulatory Alerts
2021-01-03

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.

Saudi Central Bank logo

Saudi Arabia

Saudi Central Bank

Click to view thumbnail

Saudi Central Bank

Reference No.: 42033072 Date: 1442/05/19 Attachments: None

Circular

To: Respected Banks, Greetings,

Subject: Companies and Institutions Must Not Be Required To Restore Revoked Commercial Registers.

I refer to the request by banks and commercial institutions for companies whose commercial registers have been revoked to restore those registers in order to receive the financial dues owed to them, whether via checks or otherwise. And in continuation of the existing coordination between the Saudi Central Bank (SAMA) and the Ministry of Commerce, I inform you that all banks and commercial institutions must not require companies and institutions to restore their revoked commercial registers in order to receive their financial dues, subject to the following considerations:

  1. If the beneficiary is a company, the financial dues shall be paid to the agent on behalf of the partners, after verifying the names of the partners according to the latest memorandum of association with the assistance of services provided by the Wathiq portal.
  2. If the beneficiary is an institution, the financial dues shall be paid to its owner, after verifying it with the assistance of services provided by the Wathiq portal.

For information and action as of its date, Yours sincerely,

Fahd bin Ibrahim Al-Shathri Deputy Governor for Supervision

Distribution Scope: Banks and commercial institutions operating in the Kingdom.

P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000

Share