Regulatory Alerts2019-12-25
Prohibiting Seizure of Funds Deposited Under "Hafiz" Program
The Saudi Central Bank (SAMA) has issued a circular instructing all domestic banks and financial institutions to prohibit the seizure of funds deposited into debtors' accounts under the state-sponsored "Hafiz" job seeker program. This directive aligns with Article 21 of the Execution Law, which exempts these state grants from financial enforcement following court orders. Additionally, SAMA mandates that beneficiaries who deposited funds prior to this circular's issuance shall be permitted to access them upon request.
In the Name of Allah, the Most Gracious, the Most Merciful
Saudi Central Bank (SAMA) Headquarters
Banking Policies Department No.: .................... Attachments: None
No.: 41029946 Date: 28/04/1441 (Hijri) Attachments: None
Circular
To the Respected,
Peace, mercy, and blessings of Allah be upon you,
Subject: Prohibition on Seizure of Funds Deposited under the "Hafiz" Program.
The Institution has received a letter from His Excellency the Minister of Justice, No. 419273054, dated 19/4/1441 (Hijri), stipulating that funds deposited under the "Hafiz" Program are not subject to seizure, as they represent a state grant for job seekers and fall under Article (21) of the Execution Law, thereby exempting them from financial enforcement against this program entitlement.
Accordingly, the Institution confirms to all banks and financial institutions operating in the Kingdom that funds deposited under the "Hafiz" Program into the accounts of debtors subject to execution are not subject to seizure pursuant to court orders. Furthermore, we hope to enable beneficiaries of the "Hafiz" Program who have deposited funds into their accounts prior to the issuance of these instructions to access them upon request.
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, Telex: 404400, Phone: 4633000, Fax: 4662414