Regulatory Alerts2022-05-15
Mechanism for Reporting Judicial Decisions Issued Against Certain Financial Institutions
The Saudi Central Bank (SAMA) issued this circular requiring financial institutions to utilize the Ministry of Commerce's "Electronic Authorization" service and the "Najiz Portal" to receive, view, and respond to judicial notifications against them electronically. This mechanism permits institutions to designate authorized representatives for service of process and enables real-time tracking of all court orders issued in their favor or against them. Consequently, financial institutions can file claims within the statutory notification period as mandated by Articles 32 and 46 of the relevant regulatory systems, thereby streamlining judicial compliance.
1 Abdulaziz T. Alotaibi From: Payment Policy Sent: Sunday, May 15, 2022 4:15 PM Cc: Payment Policy; Al-Yazeed Y. - Aiman I. Binkhamees; Dr.Yazeed Aleissa
Subject: Circular - Mechanism for Reporting Judicial Decisions Issued Against Certain Financial Institutions Attachments: Electronic Authorization Guide.pdf
Gentlemen / To Whom It May Concern,
Peace, mercy, and blessings of God be upon you.
With reference to the esteemed Royal Order No. 14388 dated 25/03/1439H, which adopts the following electronic means for judicial notifications (text messages sent via authenticated mobile phones, email, notification through one of the accounts approved by any of the automated systems), and as stipulated in paragraph (14) of Article 32 of the Executive Regulations of the Execution System, which states: "No notification shall be carried out at the place of residence before sunrise or after sunset, and the court is authorized to carry out notification at any time - when necessary - it may be carried out at any time, and if the notification is electronic."
In light of the above, the Saudi Central Bank (SAMA) confirms that financial institutions should utilize the "Electronic Authorization" service provided by the Ministry of Commerce, which allows a financial institution to add an authorized representative to receive judicial notifications issued against it. Additionally, institutions can view all court orders issued in favor of or against the financial institution through the "Najiz Portal." This will enable financial institutions to file claims within the notification period stipulated in "Article 32 of the System for Taking Regulatory Actions Against Financial Institutions," as referenced in Article 46 of the same system (see attached Electronic Authorization Guide).
Yours sincerely,
W . S A M A . G O V . S A