The Law of Payments and Payment Services in the Kingdom of Saudi Arabia is a set of rules, tools, and procedures that regulate the operations of the payment sector and its services in the Kingdom. It aims to protect the rights of the parties interacting with the law and to stimulate innovation and competition in the payment sector and its services.
The history of the Law of Payments and Payment Services in Saudi Arabia
The Law of Payments and Payment Services was issued in 2021 during the reign of the Custodian of the Two Holy Mosques King Salman Bin Abdulaziz. The Saudi Central Bank prepared the draft Implementing Regulations for the Law of Payments and Payment Services and presented them for consultation in 2022. The Implementing Regulations for the Law of Payments and Payment Services were issued in 2023.
Features of the Law of Payments and Payment Services in Saudi Arabia
The Law of Payments and Payment Services in the Kingdom specializes in detailing the infrastructure of the payments sector and its services. According to the provisions of the Law of Payments, the Saudi Central Bank is responsible for regulating and supervising payment systems, their operators, and payment service providers.
The Law of Payments aims to update the regulatory and supervisory frameworks governing payments and the services provided under it. Updating these regulatory frameworks, enhances the stability of the Kingdom's economy and financial sector, contributing to the robustness and resilience of the financial sector. The Law of Payments seeks to attract investors to the Kingdom by facilitating payment laws and simplifying their use for individuals and investors. This effort benefits the strengthening of the financial and economic sectors and supports the achievement of the objectives of Saudi Vision 2030.
The Law of Payments and Payment Services provides detailed provisions regarding disputes arising from the application or violation of its provisions. It also specifies the penalties imposed on violators, which include the revocation of the license granted for providing payment services, a fine not exceeding SAR25 million, or the temporary suspension of the license, accompanied by a prior warning issued to the violator.
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