In force
Saudi Payments and Payment Services Law
نظام المدفوعات وخدماتها
The Payments and Payment Services Law of Saudi Arabia. This page presents the official Arabic text of each article with plain-English explanations for residents and businesses.
- Articles
- 20
- In force
- 20
- Amended
- 0
- Issued
- 22/3/1443 AH
Issued by: مرسوم ملكي رقم (م/26) وتاريخ 1443/3/22هـ · قرار مجلس الوزراء رقم (171) وتاريخ 1443/3/20هـ
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Payments and Payment Services Law by topic
Definitions and Objectives of the Payments Law7 articlesLicensing of Payment Services4 articlesProtection of Payment Service Customers2 articlesSystemically Important Payment System and Settlement Finality6 articlesPayments Violations and Penalties1 articlePayment Disputes and Amicable Settlement2 articlesPayments Supervision and Inspection2 articles
Articles of the Saudi Payments and Payment Services Law
- Article 1Defines the key terms of the Payments and Payment Services Law, such as payment systems and services, payment order, member, customer, consumer, collateral and settlement finality.
- Article 2Sets three aims of the Law: the soundness of the payments infrastructure, protecting the rights of those who deal with it, and encouraging innovation and competition in this field.
- Article 3Sets the scope of the Law: payment systems and their operators, and payment services and their providers.
- Article 4Prohibits any person from operating payment systems or providing payment services in the Kingdom without a license from the Central Bank.
- Article 5Authorizes the Central Bank to set the cases and criteria in which a person residing outside the Kingdom is treated as operating payment systems or providing their services inside it.
- Article 6Provides that final payment orders, settlement operations, clearing arrangements, default management arrangements and collateral are binding and effective and cannot be amended, cancelled or invalidated.
- Article 7Makes the Central Bank the regulator, supervisor and overseer of payment systems and services, and lists thirteen specific powers.
- Article 8Requires operators of payment systems and providers of their services to give access on fair commercial terms, keep customers' funds separate from their own, and keep data confidential.
- Article 9Requires the operator of a payment system classified as "important" to work, from the date it is notified, under special rules it sets for this purpose as the regulations specify.
- Article 10Sets four elements the rules of an important payment system must include, among them when a payment order becomes final, enforcing against collateral, and managing members' default.
- Article 11Requires a member of an important payment system to disclose its memberships when bankruptcy or judicial deposit procedures are opened for it, and to notify the operator of what it knows about other members.
- Article 12Sets penalties for violating the Law and regulations up to SAR 25 million, the Central Bank's competence to impose them, appeal within 60 days, publication of the decision, and officers' liability.
- Article 13Subjects disputes between parties to payment systems and payment service providers to amicable settlement before court, lasting no more than 30 days from registration unless extended by written agreement.
- Article 14Makes the competent judicial body decide disputes between parties to payment systems and their service providers and interested persons' appeals against Central Bank decisions, subject to Article 13.
- Article 15Regulates the appointment of Central Bank inspectors and their powers to oversee and detect violations, prohibits preventing them from working, and requires those inspected to cooperate with them.
- Article 16Allows the Central Bank to disclose any information about a person subject to the Law to any third party if disclosure is necessary to implement the Law.
- Article 17Allows the Central Bank, as the regulations provide, to exempt a person or group of persons from some licensing requirements to encourage innovation, having regard to transparency, fairness and the Law's aims.
- Article 18Provides that the regulations of the Payments and Payment Services Law are issued by decision of the Board of Directors of the Central Bank.
- Article 19Provides that the Payments and Payment Services Law repeals every provision that conflicts with it.
- Article 20Provides for publishing the Law in the Official Gazette and its taking effect 180 days after the date of publication.