Chapter 1: Designation of Systemically Important Payment Systems
Article 101
SAMA shall consider the following criteria in order to determine whether a Payment System is, or is likely to become, a Systemically Important Payment System:
(a) Whether the Payment System could pose a risk to financial stability in the Kingdom or could trigger or transmit systemic disruption to the other Payment Systems. Factors informing this may include size, criticality, interconnectedness to the financial markets and the
absence of alternative Payment Systems;
(b) Evaluating the Payment System’s degree of connection to financial market infrastructures, whether within or outside the Kingdom, including settlement and clearing systems;
(c) The estimated aggregate value, average value, or volume of transfer orders transferred, cleared or settled through the Payment System on a normal day on which the Payment System is operational and the nature of those transfer orders; and
(d) The estimated number of direct and indirect Members in the Payment System. Article 102
(1) Where SAMA determines that it will commence a designation assessment under Article 101 provisions, SAMA shall issue a notice to the Operator. Such designation assessment may occur simultaneously with the licensing of an Applicant and a designation assessment may occur more than once according to the cases determined by SAMA (for instance, in the event that the previous designation assessment resulted in recommendations for re-assessment or if it was found through the results of the assessment that the payment system may become a Systemically Important Payment System
(2) The operator, its staff and senior management, its board members, and its critical service providers, as well as their agents and any other relevant Persons shall cooperate with SAMA and provide all the documents, information and data related to the characteristics of the Payment System, and clarify its standing against the designation criteria.
(3) SAMA may require of the Operator or other relevant Persons- whether they were established, located or incorporated in the Kingdom or outside the Kingdom- that:
(a) Data or information or documents regarding the Payment System and its operations are made available as SAMA may determine.
(b) Access to the Operator’s staff or such other Persons or representatives is granted to SAMA; and
(c) Such reports or assessments as SAMA determines are necessary to facilitate its determination are provided.
(4) Notwithstanding other applicable laws, SAMA may coordinate with any competent central bank or regulatory authority in other jurisdictions for the purpose of requesting such data or information or documents as may be relevant to a designation assessment.
(5) SAMA shall determine the duration of the designation process depending on the particular circumstances of each case, including the nature and complexity of the Payment System and the interconnection of its operations.
(6) Before deciding on the designation, SAMA may coordinate with the formal representative of the Payment System in question and the international bodies concerned with the supervision and oversight of the Payment System.
(7) SAMA shall notify the Payment System Operator of the outcome of a designation assessment. Where SAMA designates a Payment System as a Systemically Important Payment System, its notification shall state the scope of that designation, including a reference to the date from which this categorization will take effect for the purposes of the Payment System’s compliance with the provision of the Law and the Implementing Regulation, the Operating Rules of the Payment System, and the activities that are allowed to be carried out through the Systemically Important Payment System.
(8) SAMA shall publish a notice of designation and record a designation of a Payment System as a Systemically Important Payment System on its public register.
(9) SAMA may enter Payment System Operators that are already subject to its supervision into the register of licensed Payment System Operators after satisfying the relevant requirements.
(10) SAMA may require the Operator of Systemically Important Payment System to cease or amend any of the operations of the Payment System in accordance with the provisions of the Law and the Implementing Regulation and as SAMA may determine. Article 103
SAMA shall set the frameworks and principles related to the interdependence of the various Payment Systems inside and outside the Kingdom.