Saudi Arabia Drafts Regulation For The Provision Of Payment Services

Saudi Arabia Drafts Regulation For The Provision Of Payment Services

by 13. January 2020

The Saudi Arabian Monetary Authority “SAMA” announces the launch of a Draft Regulation governing the Provision of Payment Services in the Kingdom, inviting the public and those interested – in furtherance of the principle of transparency and participation – to express their observations and views on the Draft as of 10/05/1441 AH corresponding to 05 / 01/2020.

This step comes in accordance with the SAMA’s jurisdiction to operate, monitor and supervise payments and financial settlement systems in the Kingdom, as well as its authority to issue rules, instructions and licenses in this regard, based on the Council of Ministers’ Resolution No. 226 of 2/5/1440 AH.

The Draft comes as part of SAMA’s efforts to achieve the objectives of the financial sector development program, which is one of the pillars of the Kingdom’s 2030 vision, in enabling financial institutions to support private sector growth by opening financial services to non-banking actors (payment services providers and financial technologies), supporting development of the national economy. It also aims to support the achievement of “SAMA’s strategic goals” in promoting financial inclusion and reliance on technology in the field of payments to reduce cash transactions, as well as regulating the payments sector and coping with developments in it according to international best practices.

Upon preparing the Draft Regulation for the provision of payment services in the Kingdom”, SAMA has conducted studies and made similar comparisons with some countries within the Group of Twenty, in addition to holding workshops, meetings and discussions in cooperation with the relevant consultation offices and the participation of members, relevant bodies, and global payment service providers. This is to ensure providing a minimum of regulatory requirements and conditions for the provision of payment services and the issuance of licenses to payment service providers and financial technologies and their governance in accordance with regulatory and supervisory procedures to ensure the safety and stability of the financial sector.

The Saudi Arabian Monetary Authority invites the public, specialists, and those interested in the draft regulation governing the provision of payment services in the Kingdom, to provide their views and comments no later than 20/5/1441 AH corresponding to 15/1/2020, via e-mail (PSCC@SAMA.GOV.SA). It should be borne in mind that all the views and observations will be studied for adopting the final version of these rules, which can be viewed through the link: http://www.sama.gov.sa/en-US/Laws/Pages/paymentlaw.aspx

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