Law of Payments and Payment Services

Purpose and scope

• Regulates payment systems and their operators, and payment services and their providers (Article 3), aiming at safe payment infrastructure, protection of users' rights, and innovation and competition (Article 2).

Key rules, rights and obligations

• Operating a payment system or providing payment services without a central bank licence is prohibited (Article 4); the central bank regulates and supervises, sets licensing and capital conditions and protects client funds and data (Article 7).
• Operators and providers must offer services on fair terms, keep client funds in transit separate from their own, and keep client information confidential (Article 8).
• Final payment orders, settlements and netting arrangements are binding, enforceable and irrevocable (Article 6).

Violations, penalties and common problems

• Penalties: warning, temporary suspension of the licence, a fine of up to twenty-five million riyals, or cancellation; penalising a legal person does not exempt its responsible officers (Article 12).
• Obstructing central bank inspectors is prohibited (Article 15).

Procedures and key deadlines

• Anyone concerned may challenge central bank decisions within sixty days of notice (Article 12).
• Disputes between payment system participants and service providers go through amicable settlement before the competent judicial body (Articles 13 and 14).

An advisory summary prepared by Al-Bayan Al-Wadih Law Firm. It is not an official text and does not replace the law, its implementing regulations, or advice from a specialised lawyer. The official published text and its amendments prevail.