Article 9 of the Saudi Payments and Payment Services Law
المادة 9 من نظام المدفوعات وخدماتها
Requires 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.
Official text (Arabic)
This article has not been amended since the law was issued.
يلتزم مشغل نظام المدفوعات الذي يصنف بأنه نظام مدفوعات مهم، من تاريخ إشعاره بذلك؛ بالعمل وفق قواعد خاصة بـ (نظام المدفوعات المهم) يضعها لهذا الغرض، بحسب ما تحدده اللوائح.
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 9 explained in plain English
Some payment systems are more influential than others, so some are classified as an "important payment system." Under Article 1, an important system is one that the Central Bank classifies as such under criteria it sets, having regard to the volume, value and nature of its operations and its link to settlement and clearing systems inside and outside the Kingdom.
This article states what follows from this classification for the operator:
- When the obligation starts: from the date it is notified that its system has been classified as an important payment system, not before.
- What the obligation is: to work under rules specific to the important system.
- Who sets the rules: the operator itself sets them for this purpose.
- The framework: as the regulations specify.
The article does not detail what these rules must contain; Article 10 is devoted to stating the required content, such as when a payment order becomes final, the rules for enforcing against collateral, and managing members' default. These special rules are in addition to the obligations that Article 8 imposes on all operators of payment systems and providers of their services.
Practical example
A company operates a system for settling payments between a number of financial institutions, and the Central Bank notified it that its system has been classified as an important payment system. From the date of this notification it must work under rules specific to the important system, which it sets as the regulations specify.
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 9 of the Saudi Payments and Payment Services Law
When does the operator of an important payment system become bound by the special rules?
From the date it is notified that its system has been classified as an important payment system.
Who sets the rules of an important payment system?
The operator sets them for this purpose, as the regulations specify, and Article 10 states what they must include.
More articles on Systemically Important Payment System and Settlement Finality
- 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 6
Provides that final payment orders, settlement operations, clearing arrangements, default management arrangements and collateral are binding and effective and cannot be amended, cancelled or invalidated.
تعد أوامر المدفوعات النهائية وعمليات التسوية وترتيبات المقاصة وترتيبات إدارة التعثر والضمان؛ ملزمة،ً ونافذة، وغير قابلة للتعديل أو الإلغاء أو الإبطال.
- Article 7
Makes the Central Bank the regulator, supervisor and overseer of payment systems and services, and lists thirteen specific powers.
يتولى البنك المركزي التنظيم والإشراف والرقابة على نظم المدفوعات ومشغليها، وخدمات المدفوعات ومقدميها، وفقاً لأحكام النظام وما تحدده اللوائح. وله على وجه خاص الآت
- Article 10
Sets 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.
يجب أن تشتمل القواعد الخاصة بــنظام المدفوعات المهم على الآتي: 1- الوقت الذي يصبح فيه أمر المدفوعات الذي أنشأه عضو معين نهائيّاً، والوقت الذي يخضع فيه لنهائية ا
- Article 11
Requires 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.
يلتزم أي عضو في نظام مدفوعات مهم بالآتي: 1- الإفصاح للبنك ولمشغل نظام المدفوعات عن أي نظم مدفوعات مهمة يكون عضواً فيها، وذلك عند قيد أو افتتاح أي من إجراءات الإ
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.