Regulatory Alerts2024-07-03
Urging the Acceptance of Payment of Gulf Employees' Insurance Contributions through Electronic Means, and Providing the Required Information and Data
The Saudi Central Bank issued a circular urging commercial banks operating in the Kingdom to accept electronic payments of insurance contributions from Gulf Cooperation Council (GCC) employees working within member states. The directive mandates that banks provide specific registration details—namely the establishment name and its pension/social security authority record number—for all related account transactions to resolve existing data gaps. Furthermore, the Bank requires active cooperation with GCC pension and social security authorities to ensure seamless processing and accurate deposit of contribution funds.
Saudi Central Bank
Reference No.: 45077562 Date: 1445/12/27 Attachments: None
Circular
To: Respected Banks, Peace, mercy and blessings of God be upon you,
Subject: Urging the Acceptance of Payment of Gulf Employees' Insurance Contributions through Electronic Means, and Providing the Required Information and Data.
I refer to the framework for implementing the unified system for providing insurance coverage across Gulf Arab countries, and to the receipt by the Saudi Central Bank of a letter from the General Secretariat of the Gulf Cooperation Council (GCC) highlighting several challenges related to the payment of insurance contributions by GCC employees working within member states and the deposit of contribution amounts into the accounts of these states' pension and social security authorities held at commercial banks. These challenges include, among others, the lack of required information and data from the civil pension and social security accounts of GCC countries.
Accordingly, the Saudi Central Bank urges the acceptance of payment of Gulf employees' insurance contributions through electronic means. It further emphasizes the importance of providing the required information and data from the pension and social security authorities in GCC countries (establishment name – registration number/establishment record with the pension and social security authority) for all transactions on pension accounts, and cooperating with representatives of these authorities in GCC countries.
Yours sincerely,
Yazeed bin Ahmed Al-Sheikh Deputy Governor for Supervision
Distribution Scope:
- Banks and financial institutions operating in the Kingdom.