Procedures for Depositing and Transferring Salaries and Subsidies

P.O. Box 2992, Riyadh 11169, Kingdom of Saudi Arabia | Tel: +966 11 463 3000 Classification: Circular

To: Respected Banks and Financial Institutions, Peace, mercy, and blessings of God be upon you,

Subject: Procedures for Depositing and Transferring Salaries and Subsidies.

In light of the banking sector's primary role in depositing and transferring subsidies and salaries for employees across various entities, Reference: Therefore, and to ensure depositing and transferring within specified deadlines without delay, and without prejudice to related instructions; The Central Bank confirms that all banks and financial institutions must comply with the following:

1. Depositing and transferring salaries and subsidies from various entities, and government salaries received via the Central Bank, immediately upon completion of their data.
2. Verifying the availability of qualified human resources and necessary technical resources, and raising the level of system performance monitoring readiness from a technical and operational perspective during salary and subsidy depositing and transferring processes; taking necessary measures, and finding alternative plans for their timely deposit in case of any technical system issues or operations, ensuring no impact on the bank's systems during the salary and subsidy depositing and transferring period.
3. Conducting necessary evaluations for any changes during the salary and subsidy depositing and transferring period. Notifying the Central Bank in case of any delay in the deposit process through a "Treasury Support Message" via the Saudi Electronic Funds Transfer System, clarifying delay reasons and specifying the expected deposit time; to submit necessary reports to relevant authorities.
4. Establishing an appropriate mechanism for internal escalation of issues that prevent/delay the salary and subsidy depositing and transferring process. Notifying the Central Bank - via the Executive Management of the Operational Resilience Supervision Representative - immediately upon occurrence of any technical issue that may prevent/delay the process, clarifying its nature and measures taken to address it.
5. Without prejudice to paragraphs (3) and (4) above; notifying the Central Bank in case of any delay in the deposit process for government salaries received via the Central Bank; before 11:00 AM on the same day of deposit.
6. Providing the Central Bank with detailed reports on government salary deposit operations received via the Central Bank within (3) working days, including data on executed and returned transactions.
7. Providing the Central Bank with contact details for specialists responsible for depositing government salaries received via the Central Bank.

Effective from its date, to be notified and acted upon accordingly, with the Central Bank receiving the contents of paragraphs (5), (6), and (7) via the following email address: SA.GOV.SAMA@FinancialRights. These instructions supersede the Central Bank's instructions issued under Circular No. (41043218) dated 22/06/1441 AH regarding salary payment deposit procedures.

Yours sincerely, Yazeed bin Ahmed Al-Sheikh Deputy Governor for Supervision

Distribution Scope:

• Banks and financial institutions operating in the Kingdom.