Circular

Dear Sirs,

Peace, mercy, and blessings of God be upon you,

Subject: Time duration instructions for issuing a clearance letter, account transfer and indebtedness.

Based on the powers delegated to the Saudi Central Bank by its system issued by Royal Decree No. /M dated 11/4/1442 AH, the Banking Control System issued by Royal Decree No. /M dated 22/2/1386 AH, and the Financing Companies Control System issued by Royal Decree No. /M dated 13/8/1433 AH, and referring to the time durations for issuing a clearance letter, account transfer and indebtedness included in several Central Bank instructions related to this matter.

Attached are the time duration instructions for issuing a clearance letter, account transfer and indebtedness, which in turn cancel the time durations specified in several Central Bank instructions related to this matter. This instruction excludes cases issued with court decisions as well as cases pending before competent authorities.

For your information and to act accordingly within thirty working days from its date.

And accept my regards,

Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision

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Distribution Scope:

• Banks and institutions operating in the Kingdom
• Financing companies operating in the Kingdom

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Time Duration Instructions for Issuing a Clearance Letter, Account Transfer and Indebtedness

(First Issue - Rabi' al-Awwal 1443 AH / October 2021 CE)

Important Note:
To keep pace with amendments and modifications regarding instructions issued by the Saudi Central Bank, the Saudi Central Bank emphasizes the necessity of always relying on the versions published on its website: www.sama.gov.sa

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Table of Contents

Page Number	Section
3	Chapter One: Definitions and General Provisions
4	Chapter Two: Customer Request Processing Durations
4	Chapter Three: Final Provisions

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Chapter One

Definitions and General Provisions

1. Definitions:

The following words and expressions, wherever they appear in these instructions, have the meanings indicated opposite each of them, unless the context requires otherwise:

• The Central Bank: The Saudi Central Bank.
• The Instructions: Time duration instructions for issuing a clearance letter, account transfer and indebtedness.
• Financing Entities: Banks, commercial banks, and financing companies subject to the supervision and control of the Saudi Central Bank.
• Banks: Banks and commercial banks licensed to conduct banking business in accordance with the provisions of the Banking Control System.
• Customer: A natural person benefiting from the products or services of financing entities.
• Account Transfer: Transferring a customer's account balance from one bank to another with closing the transferred-from account.

2. General Provisions:

2.1 These instructions aim to determine the time durations that financing entities must comply with when receiving a customer's request to issue a clearance letter, transfer an account, and transfer indebtedness, to contribute to protecting customers and achieving fairness in transactions and enabling competition.

2.2 These instructions do not prejudice the provisions contained in related instructions and any subsequent updates thereto, including - by way of example and not limitation - the following:

• Principles for protecting bank customers communicated under Central Bank Circular No. (34100009596) dated 3/8/1434 AH.
• Updated consumer financing controls communicated under Central Bank Circular No. (351000116619) dated 10/9/1435 AH.
• Central Bank Circular No. (361000083199) dated 11/11/1436 AH regarding instructions for purchasing customer indebtedness (Consumer Financing Buyout).
• Controls for issuing and operating credit cards and monthly discount cards communicated under Central Bank Circular No. (361000090389) dated 26/6/1436 AH.
• Principles for protecting financing company customers communicated under Central Bank Circular No. (361000110320) dated 14/8/1436 AH.
• Central Bank Circular No. (391000028242) dated 10/3/1439 AH regarding the transfer of mortgage financing indebtedness.
• Central Bank Circular No. (391000086876) dated 9/8/1439 AH regarding the purchase of mortgage financing indebtedness between financiers.

Chapter Two

Customer Request Processing Durations

3. Clearance Letter:
Financing entities must execute the customer's request to issue a clearance letter - regardless of its purpose, including salary transfer - in the absence of any existing financial obligations due from the customer, within a period not exceeding one working day from the date of receiving the request, and seven working days for customers holding a credit card and/or a monthly discount card.

4. Account Transfer:
Banks must execute the customer's request to transfer the account within a period not exceeding one working day from the date of receiving the request.

5. Debt Transfer:
5.1 Consumer Financing:
Financing entities (selling the debt) must execute the request of a customer wishing to transfer the debt by completing the forms for transferring consumer financing debt within a period not exceeding one working day from the date of receiving the request.

5.2 Mortgage Financing:
A- Financing entities (selling the debt) must execute the request of a customer wishing to transfer the debt by completing the forms for transferring mortgage financing debt within a period not exceeding three working days from the date of receiving the request. B- Financing entities (selling the debt) must complete the processing of the customer's request within a period not exceeding five working days from the date of receiving approval from the financing entity (wishing to purchase the debt) on the transfer of the debt.

Chapter Three

Final Provisions

6. These instructions exclude cases issued with court decisions as well as cases pending before competent authorities.

7. Financing entities must take all measures and procedures that ensure compliance with the time durations specified in these instructions, and should rely on technical systems and electronic services to process customer requests, including issuing documents and verifying their authenticity electronically.

8. The time durations contained in these instructions replace the time durations contained in other related Central Bank instructions.