Regulatory Alerts2021-10-21
Duration Instructions for issuing a clearance letter, account transfer and indebtedness
The Saudi Central Bank issued the Duration Instructions for issuing a clearance letter, account transfer and indebtedness to standardize processing timeframes for financing institutions across the Kingdom. The circular mandates that banks and financing companies execute customer requests within specified working days—one to seven days depending on the service type—and supersedes prior timeframe regulations while exempting cases with existing judicial rulings or pending proceedings. Institutions must leverage technological systems and electronic verification to ensure compliance, thereby enhancing customer protection, transactional fairness, and market competition.
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