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Effective from Jun 13 2023 - Jun 12 2023 To view other versions open the versions tab on the right
1.
The payment service provider shall protect and preserve protected funds immediately upon receipt, taking into account compliance with the following requirements:
A.
Keep protected funds in a separate account with a licensed bank or any other means determined or permitted by SAMA.
B.
Adhere - on an ongoing basis - to all regulations, rules, instructions, controls and circulars issued by SAMA in relation to protected funds.
2.
Without prejudice to the provisions of Paragraph 1 of this Article, if the payment service provider continues to retain the protected funds at the end of the working day following the day of their receipt, he shall take the following measures:
A.
Keep the protected funds in a separate account maintained by the payment service provider with a licensed bank, to be named “Deposit and Protection of Client Funds of the Payment Service Provider,” taking into account including the name of the payment service provider.
B.
Obtain the approval of SAMA before investing protected funds, provided that the investment is made in safe and highly liquid assets and kept in an independent account with an approved custodian.
3.
The payment service provider shall verify that the protected funds account agreements with the licensed bank include all the obligations stipulated in the Regulations, or any instructions, controls or circulars issued by SAMA in this regard, provided that they include - as a minimum - the following matters:
A.
The agreement shall clearly define the roles and responsibilities of the licensed bank and payment service provider in accordance with the relevant laws, regulations and rules.
B.
The Protected Funds Trust Account is designated as an account held for the purpose of safekeeping the protected funds, and is not used for any other purpose and is not linked to any financial obligation to the payment service provider or any other person.
C.
The Protected Funds Trust Account shall be used exclusively for the safekeeping of protected funds, and shall not hold any other funds received, including the payment of fees or commissions, or be used to pay operational expenses or perform any other payment services.
D.
No other person - except for the payment service provider - has any right to dispose of the Protected Funds Trust Account.
E.
The Protected Funds Trust Account shall be subject to a daily settlement mechanism with the relevant payments and electronic money due, in accordance with the policies, procedures and controls of the payment service provider.
F.
Obtain a letter of no objection from SAMA before opening or closing the protected funds account or replacing it or merging it with another account.
G.
Continuous compliance with the requirements contained in the Regulations and any other requirements determined by SAMA.
4.
The payment service provider shall obtain a no objection from SAMA before applying any of the policies and procedures in relation to the safekeeping of protected funds, and SAMA may oblige the payment service provider to make any amendments thereto.
5.
Policies, procedures and controls relating to protected funds shall include regulating the mechanism for accessing protected funds and controlling the powers of employees associated therewith.
6.
The payment service provider shall obtain the approval of SAMA before adopting new or additional methods for safekeeping protected funds.
