Article 12 of the Saudi Payments and Payment Services Law
المادة 12 من نظام المدفوعات وخدماتها
Sets 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.
Official text (Arabic)
This article has not been amended since the law was issued.
1- دون إخلال بأي عقوبة أشد ينص عليها نظام آخر، يعاقب كل من يخالف أيّاً من أحكام النظام أو اللوائح بعقوبة أو أكثر من العقوبات التالية:
أ- الإنذار.
ب- تعليق الترخيص مؤقتاً.
ج- غرامة لا تتجاوز خمسة وعشرين مليوناً (25،000،000) ريال.
د- إلغاء الترخيص.
2- يصدر المجلس -بقرار منه- جدولاً لتصنيف المخالفات ولتحديد العقوبات ضمن حدها المنصوص عليه في الفقرة (1) من هذه المادة، مراعياً في ذلك طبيعة كل مخالفة وجسامتها، والظروف المشددة والمخففة لها.
3- يختص البنك المركزي بالنظر في مخالفات أحكام النظام واللوائح، وفي إيقاع العقوبات، وفقاً للجدول المشار إليه في الفقرة (2) من هذه المادة.
4- يكون لكل ذي مصلحة التظلم من قرارات البنك المركزي ذات الصلة خلال (ستين) يوماً من تاريخ التبليغ بالقرار.
5- يجوز تضمين القرار القضائي الصادر من الجهة القضائية المختصة أو القرار الصادر من البنك المركزي بالعقوبة -بحسب الأحوال- النص على نشر منطوقه على نفقة المخالف في صحيفة محلية تصدر في مقر إقامته أو مقر ممارسته للنشاط، أو نشره في أي وسيلة أخرى مناسبة، وذلك بحسب نوع المخالفة المرتكبة وجسامتها وتأثيرها، على أن يكون النشر بعد اكتساب القرار الصادر من الجهة القضائية المختصة الصفة القطعية أو تحصن القرار الصادر من البنك المركزي بفوات ميعاد التظلم عليه أو بتأييد الجهة القضائية المختصة له.
6- تطبيق العقوبة على الشخص ذي الصفة الاعتبارية لا يعفي الشخص ذا الصفة الطبيعية -سواء كان عضو مجلس إدارة أو مديراً أو أي مسؤول لدى ذلك الشخص ذي الصفة الاعتبارية- من المسؤولية والعقوبة المستحقة إذا ثبت أن المخالفة أو الجريمة تمت بموافقته أو بإهمال منه أو تغاضٍ.
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 12 explained in plain English
This is the penalties article of the Law, and its provisions are:
- Penalties: anyone who violates the provisions of the Law or the regulations is punished with one or more of: a warning, temporary suspension of the license, a fine not exceeding SAR 25,000,000, and cancellation of the license. This is without prejudice to any harsher penalty provided for in another law.
- Schedule of violations: the Board of Directors of the Central Bank issues, by its decision, a schedule that classifies violations and sets their penalties within the above limit, having regard to the nature and gravity of each violation and its aggravating and mitigating circumstances.
- The competent body: the Central Bank is competent to consider violations and impose penalties under this schedule.
- Appeal: any interested person may appeal the relevant decisions of the Central Bank within 60 days of the date of notification of the decision.
- Publication: a judicial decision or a Central Bank decision may include publishing its operative part at the violator's expense in a local newspaper published where he resides or carries on his activity, or by another appropriate means, depending on the type, gravity and effect of the violation. Publication occurs only after the judicial decision has become final, or the Central Bank's decision has become immune from challenge by expiry of the appeal period or by being upheld by the competent judicial body.
- Individual liability: punishing the company or legal entity does not relieve a board member, manager or other officer from liability and punishment if it is proved that the violation or offense was committed with his approval, negligence or connivance.
The article does not set the amount of the penalty for any particular violation; that is left to the schedule the Board issues. Article 13 follows, on amicable settlement of disputes. Anyone against whom a penalty decision has been issued would do well to consult a lawyer specializing in banking and finance and payment systems before the appeal period expires.
Practical example
A payment company in Dammam was notified on a certain date of a Central Bank decision imposing a fine on it for violating the regulations. It may appeal the decision within 60 days of the date of notification. If the decision includes publishing its operative part at its expense, it is published only after it becomes immune from challenge by expiry of the appeal period or by being upheld by the competent judicial body.
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 12 of the Saudi Payments and Payment Services Law
What is the maximum fine for violating the Payments Law?
The fine may not exceed SAR 25,000,000, without prejudice to any harsher penalty provided for in another law.
How long is the period to appeal a Central Bank penalty decision?
Any interested person may appeal within 60 days of the date of notification of the decision.
Is a company's manager personally punished for his company's violation?
Punishing the company does not relieve a board member, manager or other officer of liability if it is proved that the violation or offense was committed with his approval, negligence or connivance.
Who determines the penalty for each violation?
The Board of Directors of the Central Bank issues a schedule that classifies violations and sets their penalties within the stated limits, and the Central Bank imposes penalties under it.
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.