Regulatory Alerts2019-04-29
Allowing cash withdrawals and ATM card issuance for customers with seizure and ban decisions
The Saudi Central Bank’s Banking Policy Department mandates that financial institutions allow customers subject to court-ordered account seizure or transaction bans to withdraw legally exempt funds, including statutory salary portions, via ATM cards and to issue or renew such cards. This directive exempts ATM card issuance and renewal from existing prohibition orders, provided that implementing procedures ensure compliance with core seizure and ban regulations. All regulated banks and financial institutions must fully operationalize these measures by the end of the second quarter of 2019.
In the name of Allah, the Most Gracious, the Most Merciful
Saudi Central Bank Headquarters
Banking Policy Department Ref. No.: 52985/67 Date: 24/08/1440 AH Enclosures: None
Circular
To the Esteemed, Peace, mercy, and blessings of Allah be upon you,
Subject: Allowing cash withdrawals for amounts exempt from seizure via ATM cards for customers subject to seizure and ban decisions, and permitting them to issue and renew ATM cards.
Please be informed that the following has been decided:
First: Allowing cash withdrawals for amounts exempt from seizure in bank accounts under court orders, including the statutory salary portion, via ATM cards.
Second: Exempting the issuance or renewal of ATM cards from services prohibited for customers subject to a ban order.
Third: Establishing procedures and controls ensuring that the provisions in (First) and (Second) do not interfere with the application of seizure and ban rules.
For information and implementation within a maximum period ending by the end of Q2 2019.
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, Tel: 4633000, Fax: 4662414