Regulatory Alerts2013-12-01
Emphasis on Opening Bank Accounts and Providing Necessary Services to Commercial Enterprises Subject to the Wage Protection Program
The Saudi Arabian Monetary Authority (SAMA) issued this circular to mandate all domestic banks to prepare for and comply with the Ministry of Labor's Wage Protection Program (WPS) by receiving, processing, and returning results for commercial enterprises' payroll files according to approved technical specifications. The directive requires banks to ensure adequate ATM cash availability, facilitate account openings for program beneficiaries, and implement necessary operational procedures aligned with the Ministry's phased rollout that initially targets enterprises employing over 3,000 workers and private schools. Banks are instructed to disseminate these requirements across all relevant departments and branches to guarantee seamless integration of the wage disbursement monitoring system.