Circular to Banks Operating in the Kingdom

In the name of God, the Most Gracious, the Most Merciful

Number: 14394
Date: 10 / 2 / 1438 AH
Corresponding to: 7 / 11 / 2016 AD

Circular to Banks Operating in the Kingdom

Greetings,

Due to the receipt of a number of complaints regarding some banks operating in the Kingdom holding the value of installments due on loans granted to individuals from the credit accounts belonging to borrowing customers before the salary arrives, which causes confusion for the customer and restricts their freedom to dispose of their funds without legal justification, and which violates the simplest rules of treating customers with fairness and transparency.

I inform you of the necessity to stop holding any part of customers' credit accounts other than attachment requests received from competent authorities in accordance with the law and established procedures. Banks must take the necessary technical measures to deduct installments upon the borrower's salary arrival or on the date agreed upon with the borrower according to the signed contract.

What is stated above shall be effective from the beginning of 2017.

Please accept our highest regards,

The Governor
Dr. Ziad Fariz