Regulatory Alerts2019-02-20
Prohibiting Seizure of Funds Deposited by Charities Into Bank Accounts Seized Under Court Orders
The Saudi Central Bank (SAMA) mandates that all domestic banks and financial institutions refrain from seizing funds deposited by licensed charities into court-seized accounts of executed parties, provided the deposits originate from authorized charity accounts and occur after the seizure order is executed. This directive implements a Ministry of Justice exemption aligned with Article 21 of the Execution Law, treating charity deposits similarly to Citizen Account allocations. To facilitate operational compliance, SAMA has assigned specific identification codes—(CODE (CHA) in field 26T and /CHARITY/ in field 70)—for fast payment system transfers, enabling banks to accurately identify and process these exempt transactions.
In the name of Allah, the Most Gracious, the Most Merciful
Saudi Central Bank (SAMA) Headquarters
Banking Policies Department Ref. No.: 37488 / 67 Date: 15/06/1440 (AH) Attachments: None
Circular
To: Respected Banks, Peace, mercy and blessings of God be upon you,
Subject: Prohibiting Seizure of Funds Deposited by Charities in Bank Accounts Seized Under Court Orders.
The Bank acknowledges receipt of a letter from the Minister of Justice, Ref. No. 39/4264947 dated 16/04/1440, concerning the exemption of funds deposited by charities into bank accounts seized under court orders. The amounts received from charities against the executed party generally fall within Article (21) of the Execution Law, similar to the Citizen Account.
Therefore, the Bank confirms that all banks and financial institutions operating in the Kingdom shall not seize any amounts subsequently received from charities into the executed party's accounts seized under court orders, provided that these amounts are received after the execution of seizure orders and originate from accounts of charities licensed by the Ministry of Human Resources and Social Development. Please note that a specific identification code has been assigned: (CODE (CHA) in field 26T and code /CHARITY/ in field 70) for payments issued from charities' accounts executed through the banks' fast payment system, to identify and distinguish these transfers from others.
For information and action effective as of the date hereof.
Yours sincerely,
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, Telegram: MARKAZI, Fax: 404400, Tel: 4632000, Fax: 4662414