Regulatory Alerts2021-06-27
Deactivation of Point-of-Sale Terminals Tied to Frozen Bank Accounts of Juristic Persons
The Saudi Central Bank issued this circular requiring all domestic banks and financial institutions to deactivate point-of-sale terminals linked to frozen bank accounts of juristic persons. The directive mandates the immediate freezing of all related accounts and transactions for these entities upon the expiry of their required business licenses. This regulatory measure takes effect as of the circular's date to enforce strict compliance across the Kingdom’s banking sector.
Number: 42080025 Date: 1442/11/17 Attachments: None
Circular
To: Distinguished Banks,
Greetings, peace and blessings of Allah be upon you,
Subject: Deactivation of Point-of-Sale Terminals for Frozen Bank Accounts of Juristic Persons.
Based on the authorities vested in the Saudi Central Bank under relevant systems and regulations, and in light of its supervisory and oversight role over financial institutions subject to its supervision.
You are hereby informed that banks and financial institutions operating in the Kingdom must deactivate point-of-sale (POS) terminals for frozen bank accounts of juristic persons, with emphasis on freezing all accounts and transactions of juristic persons upon the expiry of the validity period of the required license to conduct business.
For information and necessary action, effective as of the date hereof.
Yours faithfully,
Fahd bin Ibrahim Al-Shathri Deputy Governor for Supervision
Distribution Scope:
- Banks and financial institutions operating in the Kingdom.
P.O. Box 2992, Riyadh 11169, Kingdom of Saudi Arabia | Tel: +966 11 463