Safeguarding Safeguarded Funds

Saudi Central Bank Reference No.: 46004465 Date: 1446/01/18 Attachments: None

Circular

To: Respected Parties,

Peace, mercy and blessings of God be upon you,

Subject: Regarding the Safeguarding and Preservation of Safeguarded Funds.

Based on the authorities of the Saudi Central Bank under the Payments and Payment Services System issued by Royal Decree No. (M/26) dated 1443/03/22H, and its Executive Regulations issued on 1444/11/24H and communicated via Circular No. (44093096) dated 1444/12/16H.

Accordingly, the Saudi Central Bank reaffirms to all payment service providers the importance of complying with the provisions regarding the safeguarding and preservation of safeguarded funds as stipulated in Article (Ninety-Three) of the Executive Regulations, subject to compliance with the following:

First: The submission of the no-objection request by payment service providers must be accompanied by policies and controls related to the management and operation of the safeguarded funds account, including the designation of authorities and authorized persons, subject to observing the following:

• Enhancing the principle of multiple oversight based on risk assessment, including activating the role of internal supervisory functions within the company.
• Limiting the authorities of account managers to designated executive positions.

Second: The payment service provider must perform and document the reconciliation process to verify that the total balance of electronic wallets or the total value of executed payment transactions matches the total safeguarded funds account.

For information and necessary action.

Yours sincerely,

Yazeed bin Ahmed Al-Sheikh Deputy Governor for Supervision

Distribution Scope:

• Payment service companies operating in the Kingdom.