Regulatory Alerts2007-04-25
Rules for Dealing with Old or Damaged Machines in Local Banks
The Saudi Central Bank requires licensed local banks and exchange houses to establish formal policies and procedures for disposing of damaged or obsolete machines, including ATMs, POS terminals, and computers, to ensure the confidentiality of recorded data is preserved. These entities must prevent discarded equipment from being treated as ordinary waste, thereby mitigating risks of tampering or unauthorized reuse while fulfilling their regulatory obligations. The directive further mandates strict compliance with information security standards throughout the disposal lifecycle to protect sensitive banking data from unauthorized access or misuse.
In the Name of Allah, the Most Gracious, the Most Merciful
Saudi Central Bank Head Office
Banking Supervision Department No.: 15088 /M.A.T./287 Attachments:
"Circular"
Date: 8 Sha'ban 1428 Corresponding to: 21 August 2007
To the Esteemed ................................................................., Greetings,
Subject: Rules for Dealing with Old or Damaged Machines in Local Banks.
The Bank wishes to inform all licensed banks and exchange houses of the necessity for due diligence when dealing with damaged machines and other bank-owned assets intended for disposal, such as ATMs, POS terminals, computers, imaging devices, and related documents and records, as well as tapes and discs for imaging or recording, etc.
In this regard, the Bank emphasizes the importance of banks establishing appropriate policies and procedures for the disposal mechanism to ensure the confidentiality of recorded information is maintained, and that they are not discarded as ordinary waste after use, which may allow tampering with these machines or their non-compliant use. The Bank also reiterates the necessity for local banks and exchange houses to comply with their regulatory responsibilities regarding damaged machines and the information they contain.
Yours sincerely,
Deputy Governor for Technical Affairs Dr. Abdulrahman bin Abdullah Al-Humaidi
Distribution Scope: Local banks and exchange houses
P.O. Box 2992, Riyadh 11169, Central Telex: 404400, Tel: 4662440, Fax: 4662865