Rules, Procedures and Instructions Regulating Saudi Payment Systems

In the Name of Allah, the Most Gracious, the Most Merciful Saudi Arabian Monetary Authority Headquarters

Banking Policies Department
Ref: 361000085193
Date: 1436/06/16
Attachments:

Circular

Subject: Rules, Procedures and Instructions Regulating Payment Systems in the Kingdom of Saudi Arabia.

Dear Sir,

Greetings,

Based on the regulations and instructions that authorized the Authority to supervise banks, financial institutions, and currency exchange practitioners, and to issue the necessary rules and procedures for them.

Please find attached a copy of His Excellency the Governor's Decision No. 361000082764 dated 1436/6/11H regarding the Rules, Procedures and Instructions Regulating Payment Systems in the Kingdom of Saudi Arabia. Licensed banks, financial institutions, and currency exchange practitioners are required to continue complying with and operating in accordance with these rules, procedures, and instructions, as well as any amendments the Authority may introduce in the future. Please be advised that the Authority will monitor the implementation and application of these rules, procedures, and instructions in accordance with the provisions of the Banking Control System and its implementing regulations. The Authority will also take regulatory action against any violation or non-compliance in this regard.

For your information.

Yours sincerely,

Abdulaziz bin Abdulrahman Al-Halissi
Deputy Governor for Supervision

Distribution Scope:

• Branches, departments, and committees of the Authority.
• Banks operating in the Kingdom.
• Licensed currency exchange practitioners.

P.O. Box 2992, Riyadh 11169, Tel: 4633000 - Fax: 4662414

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In the Name of Allah, the Most Gracious, the Most Merciful Saudi Arabian Monetary Authority Headquarters

Banking Policies Department
Ref: 361000082764
Date: 1436/06/11
Attachments:

Decision No. (361000082764) dated (1436/6/11H)

The Governor of the Saudi Arabian Monetary Authority, based on the powers delegated to him by the regulations, and after reviewing the related systems and instructions, including:

1. The Saudi Arabian Monetary Authority System, issued by Royal Decree No. 23 dated 1377/5/23H, particularly Article (1) Clause (c) and Article (3) Clause (d), which authorized the Authority to supervise commercial banks and currency exchange practitioners and to issue specific instructions for them whenever deemed necessary.
2. The Banking Control System, issued by Royal Decree No. M/5 dated 1386/2/22H, particularly Article (16) Clause (3).
3. Decision of His Excellency the Minister of Finance and National Economy No. 2149/3 dated 1406/10/14H regarding the rules for implementing the provisions of the Banking Control System.
4. The Anti-Money Laundering System, issued by Royal Decree No. M/31 dated 1433/5/11H, and its Executive Regulations, particularly Article (7) thereof, which authorized supervisory authorities to issue instructions related to the "Know Your Customer" principle, instructions related to precautionary measures and internal controls to detect any crimes specified in this system, and to verify the compliance of financial institutions with implementing relevant directives, as well as establishing, implementing, monitoring, and updating effective written controls to prevent the exploitation of these institutions in money laundering operations and to assist in detecting suspicious transactions.
5. Cabinet Decision No. 59 dated 1420/3/28H, which authorized the Authority to license the issuance of electronic cash cards and equivalents, and to supervise them in accordance with the instructions, standards, and conditions it adopts.
6. Decision of His Excellency the Minister of Finance No. 1357 dated 1432/5/1H regarding the rules governing the practice of currency exchange business.

P.O. Box 2992, Riyadh 11169, Tel: 4633000 - Fax: 4662414

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In the Name of Allah, the Most Gracious, the Most Merciful Saudi Arabian Monetary Authority Headquarters

Banking Policies Department
Ref:
Date:
Attachments:
Corresponding to:

Decides the following:

First: Consolidate the rules, agreements, standards, instructions, and manuals listed below under the title "(Rules, Procedures and Instructions Regulating Payment Systems)", which include:

1. Saudi Payment Network Operating Rules.
2. Prepaid Payment Services Rules in the Kingdom of Saudi Arabia.
3. Operating Rules and Instructions for the Saudi Quick Financial Transfers System (Sari).
4. Service Provision Agreement for the (SADAD) System with the Bank.
5. Service Provision Agreement for the (SADAD) System with the Remitter.
6. Automated Teller Machine Service Level Agreement.
7. Saudi Payment Network Standards and Procedures.
8. Check Clearing Rooms Instructions.
9. Check Specifications, Contents, and Printing Procedures Manual.
10. Direct Debit Service Manual for the Saudi Quick Financial Transfers System (Sari).

Second: All relevant entities shall continue to comply with and operate in accordance with the aforementioned and any amendments introduced by the Authority. Please be advised that the implementation and application of these rules, procedures, and instructions will be monitored in accordance with the provisions of the Banking Control System and its implementing regulations.

And Allah is the Granter of Success,

Fahd bin Abdullah Al-Mubarak
Governor

P.O. Box 2992, Riyadh 11169, Tel: 4633000 - Fax: 4662414