Oversight Framework on Payment Systems and their Operators

March, 2026 CE
Ramadan, 1447 AH

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Table of Contents:

Page	Articles
3	Article One: Definitions
5	Article Two: Introduction
6	Article Three: Objective
6	Article Four: Regulatory Framework
7	Article Five: Objectives of the Framework
7	Article Six: Scope of the Framework
7	Article Seven: Classification
7	Article Eight: Supervisory Methodology
8	Article Nine: Supervisory Activities
9	Article Ten: Obligations of Payment System Operators
9	Article Eleven: Applicable Principles for Financial Market Infrastructures

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Article One: Definitions

(1) The terms and phrases in this Oversight Framework carry the meanings set forth in the Payment System and its Services Law and its Executive Regulations, unless the context otherwise requires.

(2) For the purpose of applying the provisions of this Oversight Framework, the terms and phrases listed below – whenever they appear in the Framework – carry the meanings specified next to each of them, unless the context otherwise requires.

Definitions Table:

Term	Definition
The System	The Payment System and its Services Law issued by Royal Decree No. (M/66) dated 22/3/1443 AH.
The Regulation	The Executive Regulations of the Payment System and its Services Law issued by the Central Bank on 24/11/1444 AH.
The Framework	The Oversight Framework on Payment Systems and their Operators.
The Kingdom	The Kingdom of Saudi Arabia.
The Central Bank	The Saudi Central Bank (SAMA).
IOSCO	International Organization of Securities Commissions.
CPMI	Committee on Payments and Market Infrastructures.
Payment System (PS)	The set of instruments, procedures, and rules for processing and settling payment orders and related clearing operations within or outside the Kingdom.
Payment System Operator (PSO)	The legal entity licensed by the Central Bank as an operator of one or more payment systems.
Systemically Important Payment System (SIPS)	Payment systems classified as systemically important according to the criteria specified in the Regulation.
Non-Classified Payment System (Non-SIPS)	Payment systems not classified by the Central Bank as a systemically important payment system.
Bank for International Settlements (BIS)	An international organization responsible for issuing guidelines regarding the Principles for Financial Market Infrastructures, in cooperation with relevant regulatory/supervisory authorities.
Financial Market Infrastructure (FMI)	Any system that enables the settlement of transactions among its participants, including, but not limited to: payment systems, clearing systems, and settlement systems.
Guideline on Payment System Obligations for Financial Market Infrastructures	A document issued by the Central Bank clarifying the requirements for a payment system's compliance with the Principles for Financial Market Infrastructures.
Financial Market Infrastructures Disclosure Framework (CPSS-IOSCO Disclosure Framework)	A document issued by the Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions, specifying standard disclosure requirements for the general public for Financial Market Infrastructures, including payment systems.
Principles for Financial Market Infrastructures (PFMIs)	The principles issued by the Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions in April 2012 CE, and all subsequent amendments and issuances.
Member	Any person who has an account in a payment system and can issue payment orders or be the beneficiary thereof.
Customer	Any person who receives payment services or uses a payment system.
Self-Assessment	An evaluation process conducted by a payment system operator to determine its level of compliance with the Principles for Financial Market Infrastructures.
Supervisory Assessment	An independent assessment organized by the Central Bank to measure the extent of a payment system's compliance with relevant regulatory frameworks and international principles.

Article Two: Introduction

The Central Bank is the competent authority for the regulation, supervision, and oversight of payment systems and their operators in the Kingdom in accordance with the provisions of the Law and its Executive Regulations.

Supervision of payment systems is one of the roles and duties of the Central Bank, through which it enhances safety and efficiency by monitoring both existing and potential systems and their operators, evaluating them against safety and efficiency targets, and making necessary changes.¹

The roles and duties of supervision performed by the Central Bank also include establishing controls and standards in accordance with the Principles for Financial Market Infrastructures issued by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO); to enhance the application of best practices, assess risks, and ensure compliance with regulations that maintain the stability, safety, and efficiency of payment systems and their operators, which is essential to ensure the smooth functioning of financial markets; thereby preserving and achieving trust and reliability for all members and customers.

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¹ See "Central Bank Oversight of Payment and Settlement Systems, www.bis.org/cpmi/publ/d11.pdf".

Article Three: Objective

This document aims to define and describe the oversight framework for payment systems and their operators, which the Bank exercises in accordance with its supervisory responsibilities. It also clarifies the regulatory framework, supervisory objectives, and obligations of payment systems, as well as stating the supervisory methodology adopted for overseeing payment systems and their operators.

Article Four: Regulatory Framework

The Bank exercises its supervisory duties under the Central Bank Law issued by Royal Decree No. (M/66) dated 22/3/1443 AH, based on Paragraph (7) of Article (Four) thereof, which stipulates the Bank's commitment to "establishing, developing, and operating the infrastructure for the national payment system and settlements and clearing, issuing rules, instructions, and licenses, and exercising oversight and supervision over payment systems, settlements, and clearing within its jurisdiction."

The Bank also relies on a number of related laws, regulations, and instructions for its regulation and supervision of payment systems and their operators, the most prominent of which are as follows:

• Article Three of the Payment System and its Services Law issued by Royal Decree No. (M/66) dated 22/3/1443 AH: "The Law applies to payment systems and their operators, and payment services and their providers."
• Paragraph (6) of Article Seven of the same Law: "The Central Bank shall regulate, supervise, and oversee payment systems and their operators, and payment services and their providers, in accordance with the provisions of the Law and what the Regulations specify. It shall, in particular: ... establish a classification and specific controls for payment systems based on their degree of importance. It shall classify any payment system as a 'systemically important payment system.'"
• Paragraph (1) of Article Three of the Executive Regulations of the Payment System and its Services Law issued on 24/11/1444 AH: "The Central Bank shall implement its duties and authorities under the provisions of the Law and all related regulations and policies, observing the best international standards and practices in doing so."
• Paragraph (3) of the aforementioned Article: "The Central Bank is competent to exercise oversight and supervision over payment systems, and shall, in particular, ..."
• The Guideline on Payment System Obligations for Financial Market Infrastructures issued in March 2024 CE.
• Central Bank of Saudi Arabia Instruction No. (341000117778) dated 8/10/1434 AH titled "Application of the Principles for Financial Market Infrastructures (PFMIs)."

Article Five: Objectives of the Framework

The Framework aims to achieve the following main supervisory objectives:

• Assisting in enhancing the safety and efficiency of payment systems.
• Assisting in ensuring that payment system operators develop effective procedures to mitigate disruption risks.
• Assisting in managing systemic risks in the field of payment systems.

Article Six: Scope of the Framework

The scope of the Framework, as stated in the Regulation, includes:

• The National Payment System, which Article One of the Regulation defines as: "The payment system owned or operated directly or indirectly by the Central Bank."
• Payment systems operated in the Kingdom, whether within the Kingdom or cross-border, in accordance with Paragraph (3) of Article (One Hundred and Two).
• Other payment systems that require cooperative oversight between the Bank and other competent authorities.

The scope of supervision includes both Systemically Important Payment Systems (SIPS) and non-classified payment systems (Non-SIPS), to ensure that payment systems comply with the laws and policies issued by the Bank related to payment systems, such as the Real-Time Gross Settlement system.

Article Seven: Classification

The Bank classifies a payment system as a systemically important payment system or a potential systemically important payment system according to specific criteria. A payment system is classified as a systemically important payment system when the criteria stipulated in Article (One Hundred and One) of the Regulation are met. If these criteria are not met, it is considered a non-classified payment system.

Article Eight: Supervisory Methodology

Based on the Bank's membership in the Committee on Payments and Market Infrastructures (CPMI) and its participation in developing the internationally adopted Principles for Financial Market Infrastructures (PFMIs), the Bank seeks to fulfill its supervisory responsibilities according to a principles-based approach as follows:

• Supervision in accordance with the requirements set out in regulatory frameworks.
• Supervision in accordance with the Principles for Financial Market Infrastructures (PFMIs).

Article Nine: Supervisory Activities

The Bank oversees payment systems and their operators through the following activities:

(1) Continuous Monitoring

Through the collection, analysis, and review of data related to each payment system; to monitor the level of performance, risk, and compliance, and to ensure its safety, efficiency, and stability.

(2) Assessment

(a) Self-Assessment:

In accordance with Paragraph (1) of Article (One Hundred and Six) of the Regulation, which states: "The operator of a payment system must conduct a self-assessment to determine its compliance with the Principles for Financial Market Infrastructures at least once a year, or upon any significant change in operating systems, or upon request by the Central Bank." And Paragraph (4) of the same Article, which states: "The operator of a non-classified payment system must conduct a self-assessment to determine its compliance with the Principles for Financial Market Infrastructures periodically, as agreed with the Central Bank, or as determined by the Central Bank."

Payment system operators must also comply with Appendix (A) of the Principles for Financial Market Infrastructures: Disclosure Framework and Assessment Methodology document; for the self-assessment of each applicable principle.

The operator of a systemically important payment system is also responsible for disclosing the summary of its self-assessment after obtaining a no-objection letter from the Bank, in accordance with Paragraph (3) of Article (One Hundred and Six) of the Regulation, which states: "The operator of a payment system must -after obtaining a no-objection letter from the Central Bank- publicly disclose its answers to the summary of the self-assessment of the Principles for Financial Market Infrastructures, in line with the Disclosure Framework issued by the Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions (CPMI-IOSCO Disclosure) (Framework for Financial Market Infrastructures)."

(b) Supervisory Assessment

The Bank conducts periodic and independent supervisory assessments to measure the extent of compliance of payment systems with applicable regulatory requirements, as well as evaluating the extent of their compliance with the Principles for Financial Market Infrastructures. The Bank may also require the operator of a payment system to conduct an independent assessment of the payment system it operates, by an independent third party if necessary.

(3) Making Changes

Making changes is a fundamental function of payment system supervision, implemented through the issuance of policies, rules, and instructions, and the application of international best practices.

Article Ten: Obligations of Payment System Operators

The primary responsibility for ensuring the safety and efficiency of a payment system lies with the payment system operator, who must comply with the requirements set forth in the following regulatory framework:

(1) The Payment System and its Services Law issued by Royal Decree No. (M/66) dated 22/3/1443 AH.
(2) The Executive Regulations of the Payment System and its Services Law issued on 24/11/1444 AH.
(3) The Guideline on Payment System Obligations for Financial Market Infrastructures issued in March 2024 CE.
(4) All regulatory documents issued by the Bank related thereto.
(5) The Principles for Financial Market Infrastructures (PFMIs) directed to central banks, issued in August 2015 CE.
(6) The Financial Market Infrastructures Disclosure Framework, issued in 2012 CE by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO), which is binding on payment systems and other financial market infrastructures.

Article Eleven: Applicable Principles for Financial Market Infrastructures

(18) out of the (24) Principles for Financial Market Infrastructures apply to payment systems owned and operated by the Central Bank; in accordance with the Bank for International Settlements (BIS) guidelines on "Applying the Principles for Financial Market Infrastructures to Central Bank Financial Market Institutions," issued in August 2015 CE.

The Regulation also addressed these principles in Chapter Two of Chapter Nine, titled "Requirements for the Principles for Financial Market Infrastructures."