Regulatory Alerts2021-05-02
Circular: Instructions for Banking Obligations and Transactions in Accordance with the Bankruptcy Law and Its Implementing Regulations
The Saudi Central Bank issued clarifying instructions for banking obligations and transactions in light of the Bankruptcy Law and its Implementing Regulations, replacing previous guidance. These instructions detail banks' responsibilities, such as enabling access to debtor information for the trustee or committee, adhering to claim suspension orders, and submitting claims within specified periods. Furthermore, they outline the requirements for opening and managing bank accounts for debtors undergoing financial reorganization, liquidation, or administrative liquidation, and for providing bank statements for up to ten years.
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