Regulatory Alerts2020-03-12
Readiness of Banks and Payment Service Providers to Receive Requests for Electronic Payment Methods for Personal Service Activities
The Saudi Central Bank mandates all banks and payment service providers to be fully prepared to receive requests for opening bank accounts, e-wallets, and authorized electronic payment methods (POS devices or QR codes) for merchants operating in personal service activities. This requirement, effective from 01 April 2020, obligates financial institutions to process these requests across all channels while applying designated Merchant Category Codes (MCCs) and adhering to established regulatory and operational rules. Furthermore, institutions must internally circulate the directive to ensure staff adequately handle related requests and inquiries in compliance with the National Program for Combating Commercial Concealment.
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