Part 10: Supervision and Control
Article 118
(1) SAMA is responsible for the monitoring of actions conducted by Payment Service Providers and Payment System Operators and evaluating their compliance, and the monitoring and examination of potential violations of the Law, the Implementing Regulation, and any instructions, decisions or circulars issued by SAMA.
(2) In conducting its supervisory functions, SAMA may conduct supervisory or inspection visits to the licensee's headquarters, branches and agents, including the power to request reports and risk assessments that it deems necessary for the exercise of its functions. Article 119
A committee or more may be formed comprising Payment Service Providers and Payment System Operators after obtaining approval from SAMA to be responsible for studying the proposals and recommendations necessary to develop the Payment Systems and Payment Services sector.
Article 120
(1) Licensees will be required to provide data and submit reports periodically as mandated by SAMA.
(2) A Licensee is obliged to submit to SAMA quarterly financial reports (to be reviewed by an external auditor), which include any information that SAMA deems necessary.
(3) A Licensee is obliged to submit to SAMA annual financial statements (reviewed and audited by an external auditor) in a way determined by SAMA.
(4) SAMA may amend and supplement the list and contents of the reports required to be submitted by a Licensee. SAMA may require that a Licensee hires an external auditor to review specific areas of its operations and report directly to SAMA in the manner specified by SAMA. Article 121
(1) A Licensee must notify SAMA as soon as possible, and within ten calendar days in any event, if it becomes aware that any of the following events have occurred or are likely to occur:
(a) Any event that prevents access to or disrupts the operations of one or more of its Relevant Payment Services offered by it or Payment Systems operated by it;
(b) Any breach of its obligations under the Implementing Regulation or other applicable laws, regulations and decisions;
(c) Any legal proceeding against it or any criminal proceeding against any member of its Senior Positions, either in the Kingdom or outside;
(d) The commencement of any bankruptcy, winding up or other liquidation proceedings, or the appointment of any receiver, administrator or provisional liquidator under the law of any country;
(e) Any disciplinary measure or sanction taken against it or imposed on it by a regulatory body other than SAMA, whether in the Kingdom or outside;
(f) Any change in supervisory or regulatory requirements to which it is subject beyond those of SAMA, whether in the Kingdom or outside;
(g) Fraud; and
(h) Any other event specified by SAMA.
Unless any other applicable laws, regulations or rules specify a shorter timeframe, in which case the notification must be made within that shorter timeframe.
(2) Notwithstanding the specific notification obligations set out in Paragraph (1) of this Article, a Licensee must notify SAMA immediately upon identification of any ‘Medium’ or higher classified cyber incident or any operational incident that may affect Clients in compliance with related instructions. Article 122
(1) Inspectors, appointed based on a decision of the Governor of SAMA pursuant to Paragraph (1) of Article 15 of the Law, shall receive notices, collect information, control necessary evidence and complete legal procedures.
(2) Inspectors may seek assistance from criminal investigation employees if necessary.
(3) Inspectors may hire specialists either as individuals or companies when conducting their survey, examination, and seizing materials connected with violations. The duty of such individuals and companies shall be confined to showing places and materials that require search and capturing during an investigation.
(4) Inspectors shall be subject to any relevant laws, rules, procedures and permissions related to their work. Article 123
(1) SAMA may require a report on any matter about which SAMA has required or could require the giving of specified information, or production of specified documents, as SAMA deems necessary and desirable to meet the objectives of the Law, from any of the following:
(a) A Payment Service Provider;
(b) A Payment Systems Operator;
(c) Member of Senior Positions, employee, Agent, or external auditor of the payment service provider or the payment system operator; or
(d) A controller.
(2) The Person appointed to make a report, as required by the above Paragraph, must be a Person either nominated or approved by SAMA and must, in SAMA’s views, have the skills necessary to make a report on the matter concerned. Article 124
Notwithstanding relevant provisions as applicable – which in the event of possible contradiction will take precedence - a Licensee must not partially or totally shut down its business activities or apply for a winding up, liquidation or other bankruptcy proceedings without first receiving a non-objection letter from SAMA, which may request information and documents to be provided by the Licensee in this regard.
Article 125
SAMA may exclude a Person or group of Persons from certain licensing requirements for purposes of stimulating innovation and development in the provision of Relevant Payment Services and the operation of Payment Systems, taking into account transparency and justice.
Article 126
An inspector appointed pursuant to a decision from the Governor under Paragraph (1) of Article 15 of the Law shall:
(1) Be a Saudi national;
(2) Be of good conduct;
(3) Have not been sentenced of a breach of trust offense or a crime involving moral turpitude, unless rehabilitated; and
(4) Hold a bachelor's degree from the Kingdom of Saudi Arabia, or the degree has been equated. Article 127
(1) SAMA may direct the licensee to take one –or more- corrective actions to ensure their commitment to the provisions of the Law and the Implementing Regulation and any relevant instructions, decisions or circulars issued in implementation thereof as follows:
(a) To take any actions to correct the existing situation in the form and time specified.
(b) To close one of its branches or platforms.
(c) To stop using one or more of its Agents or distributors.
(d) Suspending, restricting or prohibiting specific provided services or products.
(e) The development of progressive cessation restrictions and controls.
(2) Subject to the relevant provisions contained in Article 12 of the Law, SAMA shall issue a penalty decision against anyone who violates the provisions of the Law, Implementing Regulation, instructions or relevant decisions in accordance with the classification schedule of violations and the determination of penalties.
(3) Notwithstanding the competence of the Banking Dispute Committee, the Licensee must, if so directed by SAMA to revoke the license:
(a) Immediately stop practicing the activity related to the License revoked;
(b) Announce the dissolution of the Licensee in a manner as prescribed by SAMA, notwithstanding any other requirements under applicable laws, regulations and decisions;
(c) Enter into liquidation within a period not exceeding six months from the date the Licensee is notified of the License revocation, provided that this is done in accordance with the relevant laws and SAMA has the right to assign a liquidator to carry out the liquidation process; and
(d) Maintain and keep records and data at the disposal of SAMA for the period it specifies without prejudice to the provisions of the relevant laws.
(4) SAMA will monitor such corrective action plan in accordance with a timeframe and reporting mechanism that SAMA will stipulate. Article 128
Inspectors - appointed further to a decision from the Governor under Paragraph (1) of Article 15 of the Law - law enforcement personnel, experts and specialists assisting them shall not disclose confidential information which they come across in the course of their work even after terminating their services unless such disclosure is necessary for purposes of implementing the Law or the Implementing Regulation or any other applicable laws.