Article 40 of the Saudi Commercial Court Law
المادة 40 من النظام التجاري نظام المحكمة التجارية · الفصل الخامس: في الصيارف
The article prevents the money changer from accepting or paying coins that are filed down, short of their weight or counterfeit.
Official text (Arabic)
This article has not been amended since the law was issued.
يجب على الصراف أن لا يقبل ولا يدفع نقودا مبرودة أو ناقصة عن وزنها ولا زائفة .
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 40 explained in plain English
This article sets a rule to protect confidence in dealing with money. The money changer must neither accept nor pay three types of coins:
- Filed-down coins: that is, metals from which a part has been filed away.
- Coins short of their weight.
- Counterfeit coins.
The prohibition is double: the money changer may not take these coins from customers, nor give them to them. It is understood that the money changer, by virtue of his profession of exchanging currency, is required to verify the money that passes through his hands.
Article 41 follows to provide that every money changer is responsible for his work, the regularity of his books and the work of the employees with him, where a penalty follows under the chapter on penalties. The present article does not set the penalty itself.
Note that the descriptions given (filed down and short of their weight) relate mainly to the metal coins that were in circulation when the law was issued. If you find yourself in a dispute over counterfeit money, consult a specialist lawyer.
Practical example
A customer came to a money changing shop in Jeddah wanting to exchange banknotes that the money changer found to be forged. Under this article the money changer may not accept them, and may not pay any customer counterfeit or short coins.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCriminal Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Criminal Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 40 of the Saudi Commercial Court Law
May a money changer accept counterfeit currency?
No. The money changer must neither accept nor pay coins that are filed down, short of their weight or counterfeit.
Does the prohibition include paying customers?
Yes. The text prevents both accepting and paying.
More articles on Brokers and Money Changers
- Article 30
The article defines the broker (dallal) as a person who mediates between seller and buyer to complete the sale for a fee.
الدلال : هو من يتوسط بين البائع والمشتري لإتمام البيع بأجرة.
- Article 31
The article refers the broker's rights, duties and fee to established custom and usage.
يتبع فيما للدلال من الحقوق وفيما عليه من الواجبات وفيما يستحقه من الأجرة العرف المطرد والعادة.
- Article 32
The article requires a broker dealing in commercial goods between merchants to keep a daybook in which he records his work daily with specified details and with no blanks or erasures.
يجب على كل دلال يتعاطى الدلالة في البضائع التجارية بين التجار أن يتخذ له دفتر يومية يقيد فيه أعماله بعد إتمامه يوما فيوما بصورة واضحة مع بيان اسم البائع والمشتر
- Article 33
The article requires brokers to present their books with the necessary explanations if the Commercial Court requests them, with no right to refuse.
يجب على الدلالين أن يقدموا دفاترهم مع ما يلزم من الإيضاحات إذا طلبت منهم المحكمة التجارية وليس لهم حق الامتناع بوجه من الوجوه.
- Article 34
The article requires a broker, where goods are sold through him by sample, to keep the sample until the day of delivery, marked so as to prevent confusion.
إذا بيعت بضاعة بواسطة دلال على أنموذج - أي عينة معلومة - وجب عليه حفظها إلى يوم تسليم البضاعة مع التأشير عليها بما يلزم لمعرفتها بدون اشتباه.
- Article 35
The article defines the money changer (sarraf) as a person who practices the profession of exchanging currency, coins and banknotes.
الصراف : هو من يتعاطى مهنة تبديل العملة نقودا وأوراقا نقدية .
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.