Regulatory Alerts2017-12-13
Instructions for Payment of Amounts to Beneficiaries of the Citizen Account Program
The Saudi Central Bank’s Banking Policy Department issues binding instructions to all local and foreign bank branches regarding the disbursement of financial entitlements under the Citizen Account Program. The directive mandates that banks must not deduct transferred program funds to settle existing debts, must exclude these entitlements from beneficiaries’ financial solvency and credit assessments, and recognizes that judicial account attachments legally cover these incoming funds. To facilitate tracking, the instructions designate tariff code 70/CITIZEN in field 26T and code (CIT) for all transfers routed through Al Rajhi Bank to beneficiaries’ accounts.
In the Name of Allah, the Most Gracious, the Most Merciful Arab Monetary Authority Headquarters
Banking Policy Department Ref. No.: 391000034675 Date: 1439/03/25 Attachments: None
Urgent Circular / Important
To: The Respected [Title/Name] With greetings...
Subject: Instructions for Payment of Amounts to Beneficiaries of the Citizen Account Program.
I refer to Cabinet Decision No. 197 dated 1438/03/23 AH, which established the Citizen Account Program and designated the Ministry of Human Resources and Social Development as the implementing authority, and I refer to the telegram from His Excellency the Undersecretary of the Ministry of Finance for Financial and Accounting Affairs, No. 9244 dated 1438/08/22 AH, based on the letter from His Excellency the Minister of Human Resources and Social Development No. 54996 dated 1438/08/07 AH, regarding the payment of financial entitlements to beneficiaries of the Citizen Account Program.
Please be informed that in preparation for the payment of financial entitlements to beneficiaries of the Citizen Account Program, the tariff code (code) 70 / CITIZEN in field 26T and code (CIT) has been designated for the amounts to be transferred from the Citizen Account Program at Al Rajhi Bank to beneficiaries' accounts at Al Rajhi Bank and all other banks, facilitating the identification of the transfer purpose to beneficiaries' accounts and distinguishing them from other transfers such as salary transfers, etc. Banks are required to comply with the following instructions:
First: No deduction or withholding of any amounts for debts owed to the bank from the amounts transferred from the Citizen Account Program to beneficiaries' accounts. Second: The financial entitlements of beneficiaries under the program shall not be considered in their financial solvency, repayment capacity, and credit behavior. Third: If any of the beneficiaries' accounts is attached pursuant to decisions issued by judicial or legally authorized authorities, then based on the provisions of the Execution Law and related regulations, the attachment shall include amounts received from the Citizen Account Program.
For your information and action, and the Institution appreciates the cooperation of all banks in supporting the national "Citizen Account" program. Yours sincerely, with greetings and appreciation...
Ahmed bin Abdullah Al-Sheikh Acting Deputy Governor for Supervision
On behalf of / Hashim bin Uthman Al-Haqeel Acting Deputy Governor for Banking Operations
Distribution Scope:
- Local Banks
- Branches of Foreign Banks
As-Saghir (Signature)
P.O. Box 2992, Riyadh 11169, Telegram Address: MARKAZI, Telex: 404400, Phone: 4633000, Fax: 4662414