Article 2 of the Saudi Payments and Payment Services Law
المادة 2 من نظام المدفوعات وخدماتها
Sets 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.
Official text (Arabic)
This article has not been amended since the law was issued.
يهدف النظام إلى ما يلي:
1- تعزيز سلامة وكفاية البُنى التحتية لنظم المدفوعات وخدماتها في المملكة.
2- تعزيز حماية حقوق الأطراف المتعاملة مع نظم المدفوعات وخدماتها.
3- تحفيز الابتكار والمنافسة في مجال تشغيل نظم المدفوعات وتقديم خدماتها في المملكة.
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 2 explained in plain English
This article explains the purpose of the Payments and Payment Services Law, which is three aims:
- Enhancing the soundness and adequacy of the infrastructures of payment systems and services in the Kingdom, meaning that the systems and tools through which funds pass are secure and able to do their work.
- Enhancing the protection of the rights of the parties dealing with payment systems and services, who under the definitions in Article 1 include members, customers, consumers and others who deal with these systems and services.
- Encouraging innovation and competition in operating payment systems and providing their services in the Kingdom.
This article does not in itself create a specific right or obligation, but it is important for understanding the rest of the Law, as it shows the direction in which the other articles are read. The combination of soundness and protection on one side, and innovation and competition on the other, shows that the Law seeks a regulated and secure payments market without closing the door on new solutions.
This is connected to Article 3, which sets the scope of the Law over payment systems and their operators and payment services and their providers.
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 contentBanking, Finance & Securities lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Banking, Finance & Securities lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Dr. Saleh Altayyar & Partners Law Firm
Frequently asked questions about Article 2 of the Saudi Payments and Payment Services Law
What are the aims of the Payments and Payment Services Law?
Enhancing the soundness and adequacy of the infrastructures of payment systems and services, enhancing the protection of the rights of the parties dealing with them, and encouraging innovation and competition in operating payment systems and providing their services in the Kingdom.
Does the Payments Law care about protecting users?
Yes. One of its stated aims is enhancing the protection of the rights of the parties dealing with payment systems and services.
More articles on Definitions and Objectives of the Payments Law
- Article 1
Defines 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.
يقصد بالكلمات والمصطلحات الآتية -أينما وردت في هذا النظام- المعاني الموضحة أمام كل منها، ما لم يقتضِ السياق غير ذلك: النظام: نظام المدفوعات وخدماتها. البنك المر
- Article 3
Sets the scope of the Law: payment systems and their operators, and payment services and their providers.
يسري النظام على نُظم المدفوعات ومشغليها، وخدمات المدفوعات ومقدميها.
- Article 5
Authorizes 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.
يحدد البنك المركزي الحالات والمعايير التي يُعدّ بناء عليها الشخص المقيم خارج المملكة في حكم المشغل لنظم المدفوعات أو المقدم لخدمات المدفوعات داخل المملكة، لغرض
- Article 18
Provides that the regulations of the Payments and Payment Services Law are issued by decision of the Board of Directors of the Central Bank.
تصدر اللوائح بقرار من المجلس.
- Article 19
Provides that the Payments and Payment Services Law repeals every provision that conflicts with it.
يلغي النظام كل ما يتعارض معه من أحكام.
- Article 20
Provides for publishing the Law in the Official Gazette and its taking effect 180 days after the date of publication.
ينشر النظام في الجريدة الرسمية ويعمل به بعد (مائة وثمانين) يوماً من تاريخ نشره.
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.