Skip to main content
Custom print
Download Original PDF

  • Chapter 3: Payment Systems Authorities

    • Article 108

       

      (1)SAMA may request information or documents from the Payment System Operator or one of its Members when performing its duties and functions under the Law and the Implementing Regulation.
       
      (2)Notwithstanding any other powers of SAMA, The Payment System Operator or the Member of the Payment System is required to submit the information or documents within the period specified in the request and the Payment System Operator must procure that the relevant Member provides the requested information or documents.
       
      (3)SAMA may examine any books, accounts or transactions of the Payment System Operator when performing its functions and the Payment System Operator must procure cooperation from the Member as required.
       
      (4)SAMA may require a Payment System Operator or one of its Members to submit to SAMA a report prepared by one or more auditors on matters that SAMA requires for discharging or exercising its duties and powers under the Law and the Implementing Regulation and the Payment System Operator must procure cooperation from the relevant Member as necessary. 
       

    • Article 109

       

      (1)SAMA may require the Operator of a Payment System to establish rules for the operation of the system, including the operation of services that form part of the Payment System Operation arrangements and provided by a service provider related to the Payment System, or request any amendment or change on the rules.
       
      (2)A Payment System Operator must notify SAMA of any proposed amendment or change to its rules and not change the rules without the approval of SAMA.
       

    • Article 110

      SAMA may direct a Payment System Operator to take any action necessary to ensure the Payment System compliance with the Law and the Implementing Regulation. Such a direction shall specify the justifications and the actions to be taken or set the standards that must be met in the operation of the system or the services provided through it within the period which SAMA deems appropriate.

    • Article 111

      Notwithstanding any other powers of SAMA, SAMA may appoint one or more Persons other than its employees to inspect the operation of a Payment System or a service provider related to a Payment System and the provision of all services to such a system by a service provider. The Operator of a Payment System must- In accordance with the written permission granted to the person appointed by SAMA:

      (a) Grant an inspector access, on request and at any time, to premises on or from which any part of the system is operated or (as the case may be) premises on or from which any part of the services is provided; and 
       
      (b) Co-operate with an inspector and Provide all the necessary data, information and documents to help perform their functions.

    • Article 112

      SAMA may require the Operator of a Payment System to appoint an expert to report on the operation of the system and impose requirements about the experiences and specialization of the expert to be appointed, the content of the report, treatment of the report (including disclosure and publication) and timing. In the following cases:

      (a)The Operator is not taking –as required- sufficient account of guidance, standards and principles set out in the PFMIs; or
       
      (b) A report is necessary for any other reason to assist SAMA in the performance of its functions under the Law and the Implementing Regulation relating to Payment Systems.

    • Article 113

      Where action has been taken under default arrangements of a Payment System by the Payment System Operator in respect of a Member in the Payment System, SAMA may direct the Payment System Operator to give information relating to the default to any employee nominated by SAMA. The nominated employee is responsible for assessing and examining any matter arising out of or connected with the default of the Member in that Payment System. The liabilities of Members for any loss arising from the default of the concerned Member and the arrangements to handle any disputes over Members’ liability with respect to default transactions should be clearly set out in the rules and procedures, and any such disputes are subject to the disputes provisions included in the Law and the Implementing Regulation.  

       

      • Article 114

         

         (1)

        SAMA may, taking into account the considerations in Paragraph (2) of this Article, determine that the Cross-Border Payment System does not need to be licensed pursuant to the provisions of the Implementing Regulations or that certain provisions and obligations will not be applied or waived, in the event that the conditions of the Cross-Border Payment System comply with the following:

        (a)Where a Payment System falls or will fall within the jurisdictional scope set out in Article 4 of the Implementing Regulations, and
         
        (b) In addition to the Kingdom, it or its Operator operates or will operate in one or more additional jurisdictions.
         
         (2)

        In making such a determination, SAMA shall take into account the following considerations:

        (a)The extent to which the Payment System is or will be subject to a regulatory regime and lead or co-supervision by one or more overseas authorities outside the Kingdom, taking into account the nature and basis of that regime and supervision and whether SAMA has an adequate basis for co-operation with such authorities;
         
        (b)The accepted alternate basis for licensing on which SAMA can supervise and enforce the Payment System’s operations as they relate to the Kingdom, including as to rights to information, to give direction and to enforce non-compliance;
         
        (c) The extent to which an alternate basis of oversight and regulation of the Payment System facilitates SAMA having regard to the objective of the Implementing Regulation; and
         
        (d)The extent to which SAMA is able to supervise and ensure the Payment System’s compliance with the PFMI and is able to meet the responsibilities of market regulators identified under the PFMI.
         
         (3)SAMA shall announce the decision taken with regard to dealing with the Cross-Border Payment System and clarify the approach adopted in this regard, taking into account the principles of transparency and disclosure.
         
         (4) 

        Where a Cross-Border Payment System falls within Paragraphs (a) and (b) of Paragraph (1) of this Article, and it or its Operator conducts additional Payment System business outside the Kingdom or otherwise settles Payment Orders to overseas Members, the following must apply: 
         

        (a)There must be a Memorandum of Understanding in place between SAMA and the competent authority of the relevant jurisdiction in relation to the supervision of Payment Systems; and/or
         
        (b) SAMA must be satisfied that the jurisdiction in question is regulated on a basis that is equivalent or otherwise enables SAMA to supervise the Systemically Important Payment System in terms of information exchange, cooperation and enforceability.