Regulatory Alerts2015-01-13
Fees for Wage Protection Program Transfers Between Accounts Within the Bank
The Saudi Arabian Monetary Authority mandates that all financial transfers under the Wage Protection Program between accounts within the same bank be provided free of charge. Financial institutions must adhere to the established SARIE and SPAN pricing policies for interbank transfers and prepaid cards, ensuring no additional fees are applied. Furthermore, banks are required to execute a formal Service Agreement that clearly outlines all applicable charges and secures the counterparty's acceptance prior to implementation.
In the name of Allah, the Most Gracious, the Most Merciful
Saudi Arabian Monetary Authority Headquarters
Banking Policy Department No.: 9041011542 No.: 361000045859 Date: 23/03/1436 AH Attachments:
Circular
Subject: Fees for Transfers Between Accounts Within the Bank under the Wage Protection Program
Dear Sir/Madam, Peace, mercy, and blessings of Allah be upon you,
With reference to the Authority's Circular No. 35100012318 dated 28/01/1435 AH, Circular No. 35100061537 dated 12/05/1435 AH, and Circular No. 35100063555 dated 17/05/1435 AH, which emphasize the importance of cooperation and support for the national "Wage Protection Program". In light of complaints received by the Authority regarding fees charged on financial transfers to internal accounts (current or prepaid accounts) through this program,
the Authority confirms compliance with the following instructions:
- Transfers between accounts within the bank shall be free of charge for all types of bank accounts.
- Adherence to the service fees outlined in the Authority's Pricing Policy for the Saudi Electronic Payments System (SARIE) regarding interbank financial transfers.
- There shall be a "Service Agreement" for this program, and the bank must clarify all its terms and the fees it will charge in return, ensuring acceptance by the other party prior to signing the agreement.
- Adherence to the prepaid card fees outlined in the Authority's Saudi Payments Network (SPAN) Pricing Policy, with no additional fees charged.
Yours sincerely,
Abdulaziz bin Abdulrahman Al-Hulaisi Deputy Governor for Supervision