Article 41 of the Saudi Commercial Court Law
المادة 41 من النظام التجاري نظام المحكمة التجارية · الفصل الخامس: في الصيارف
The article makes every money changer responsible for his work, books and employees, regulates the exchange of coins at the Finance request, and assigns the application of the money changer provisions to municipal councils where there is no Commercial Court.
Official text (Arabic)
This article has not been amended since the law was issued.
كل صراف مسئول عن أعماله وانتظام دفاتره وأعمال الأشخاص المستخدمين عنده مما تترتب فيها عقوبة بمقتضى فصل العقوبات :
أ- يجب على الطرفين أن يقوموا بكل أمر حكومي إذا بدا للحكومة أي طلب من طريق المالية من قبيل التبديل في المسكوكات بطرق التوزيع والتساوي بين الطرفين مع مراعاة الوقت والحال .
ب- يجب على المالية أن لا تأخذ شيئا من الطرفين بطريق التبديل إلا بنقد حينما تقبض تسلم .
ج- يجب أن يكون سعر الجنيه أو الريالات بسعر ذلك اليوم الذي تريد المالية تبديل ما تريد تبديله من المسكوكات بغير زيادة ولا نقصان .
د- يجب على المالية أن لا تكلف الصرافين في كل وقت بتبديل المسكوكات وإنما يكون تكليفهم حين اللزوم الضروري وبعد موافقة مجلس الوكلاء .
هـ- في البلدان التي لا يوجد فيها محكمة تجارية تقوم المجالس البلدية فيها بتطبيق المواد الخاصة بالصرافين بدلا عن المحكمة التجارية .
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 41 explained in plain English
This article gathers several provisions concerning money changers:
First: Responsibility. Every money changer is responsible for his work, the regularity of his books and the work of the persons employed with him, where a penalty follows under the chapter on penalties. The money changer does not escape responsibility by placing it on his employees.
Second: Exchanging coins at Finance's request, which contains the following items:
- (a) Both parties must carry out every government order if the government requests, through Finance, the exchange of coins, by distribution and equal shares between the two parties, with regard to time and circumstance.
- (b) Finance takes nothing from the two parties by way of exchange except in cash, so when it receives, it delivers.
- (c) The price of the pound or the riyals is the price of the day on which Finance wants to make the exchange, with no increase or decrease.
- (d) Finance does not require the money changers to exchange at every time, but when absolutely necessary and after the approval of the Council of Deputies.
Third: The applying body. (e) In towns where there is no Commercial Court, the municipal councils apply the articles on money changers in its place.
The text does not specify exactly who the "two parties" are. Because these provisions reflect an old currency regime, it is advisable to consult a lawyer who specializes in banking and finance on any practical matter.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 41 of the Saudi Commercial Court Law
Is a money changer responsible for his employees' mistakes?
Yes. Every money changer is responsible for his work, the regularity of his books and the work of the persons employed with him where a penalty follows under the chapter on penalties.
At what price does the exchange that Finance requests take place?
At the price of the pound or the riyals on the day on which Finance wants to make the exchange, with no increase or decrease.
Who applies the money changer provisions if there is no Commercial Court?
The municipal councils apply the articles on money changers in place of the Commercial Court.
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.