The Saudi Central bank* (SAMA), in accordance with the authority vested on it under the following relevant Saudi laws, is the legislative body responsible for exercising regulatory and supervisory control over banks and money exchangers, issuing general rules and overseeing that all banks and money exchangers comply and effectively implement the relevant laws and regulations.

1. The Charter of Saudi Arabian Monetary Agency –issued via Royal Decree No. 23 dated 23/5/1377 H, Articles 1 (c) and 3 (d), which entrusts SAMA to supervise and regulate commercial banks and money-changers, and to set relevant rules whenever deemed necessary;
2. The Banking Control Law – issued via Royal Decree No. M/5 dated 22/2/1386 H Article 16 (3).
3. Decision No. 3/2149 dated 14/10/1406 H of His Excellency the Minister of Finance concerning the implementation of the provisions of the Banking Control Law.
4. Based on the provisions of Articles 4 & 6 of the Anti-Money Laundering Law and its Implementing Regulations issued via Royal Decree No. M/39 dated 25/6/1424 H, empowering regulatory authorities to issue rules related to "Know Your Customer" Principle, and instructions related to precautionary procedures and internal control to detect any of the crimes stated in this Law, ensure compliance of financial institutions with issued instructions; set, apply and update effective written controls and monitor their application to prevent the exploitation of these institutions in money-laundering operations and assist in detecting suspicious transactions.
5. Council of Ministers’ Decision, No. 59 Dated 28.3.1420 H which gives the authority to SAMA to authorize the issuance of Electronic Cash Cards and alike, and supervise according to instructions, standards and terms adopted by SAMA.

The Regulatory Rules shall be applicable to the issuance and operations of all aspects of prepaid payments as issued by licensed banks that have been authorized by the Saudi Central Bank* Agency.

SAMA is the sole authority empowered to apply these Regulations and to take necessary measures as it deems appropriate regarding any violations of these provisions including imposing punitive charges and / or enforcement actions as applicable under the Banking Control Law. These rules are to be read in conjunction with and supplement the regulations as annotated in the ‘Rules Governing the Opening of Bank Accounts and General Operational Guidelines in Saudi Arabia’ as issued by SAMA. Financial Service providers in the Kingdom of Saudi Arabia are expected to act as responsible businesses, ensuring their customers are educated and informed about the products and services offered, enabling them to make considered decisions about the products and services proffered and their use.

The purpose of the Regulatory Rules is to promote the informed use of prepaid payment services in the Kingdom. The framework defines the scope of prepaid payment services covered by the regulation, the license requirements to issue and acquire prepaid payment services, as well as defining the rights of end users relating to these payments.

The Regulatory Rules prescribes minimum levels of disclosure, gives accountholders the right to cancel prepaid service agreements, regulates certain prepaid payment service practices and provides a means for fair and timely resolution of transaction disputes, thereby providing detailed and sufficient information to educate and enhance the account holder and/or primary cardholder’s knowledge and awareness of prepaid payment service products and their associated terms and conditions.

Where a prepaid payment service is operated utilising the SPAN payment scheme brand these regulations should be read in conjunction with the SPAN Scheme Standard¹.

The Regulatory Rules is divided into two sections.

The first section provides a definition of prepaid payment services, of the stakeholders interacting within prepaid payment services and also of the various prepaid payment service segments.

The second section lays down the operating rules and guidelines governing prepaid payment services, including the regulations regarding merchants.

Prepaid payment services operating within the Kingdom, regulated by SAMA, are subject to the rules and regulations defined herein. In addition, Open Loop prepaid services operate through the Saudi Arabian Payments Network (SPAN) and are subject to the applicable Operating Rules and Procedures defined and published by the SPAN Scheme from time to time. These Prepaid Regulatory Rules should therefore be read in conjunction with the ‘SPAN Operating Rules and Regulations’ and ‘SPAN Operating Procedures’, collectively referred to as the ‘SPAN Business Books’.

¹The SPAN Scheme Standard relate to the SPAN Business Books, Operating Rules and Procedures

* The Saudi Arabian Monetary Agency was replaced By the name of Saudi Central Bank accordance with The Saudi Central Bank Law No. (M/36), dated 11/04/1442H, corresponding in 26/11/2020AD.