Referring to SAMA Circular No. BCI/796, dated 23/12/1429H The attached text is the new model for the slip of dishonored check form that should be implemented and used by branches of the central bank and operating banks in the Kingdom starting from 1/1/1430H, This form should be attached when returning the check to the clearinghouse or to the customer who presented the check, for each check individually.

We would like to inform you that SAMA has noticed that a number of bank branches are still using the old objection form, and that the branches using the new form do not complete all the necessary data concerning the drawer. SAMA has received a letter from the Ministry of Commerce and Industry indicating the importance of this data and the need for its completion, as issuing a check without sufficient funds is considered bad faith by the issuer and constitutes a crime that requires the drawer or issuer of the check to be punished according to the following articles: 94, 118, and 121 of The commercial paper Law The penalties include a monetary fine not exceeding 50,000 Riyals, imprisonment for a period not exceeding three years, and Defamation through the commercial and industrial chambers of the Kingdom. Demanding the enforcement of these penalties requires completing the details of the drawer and the check's signatory.

We hope to adhere to what is stated in the above-mentioned circular from the central bank and to take action accordingly. In the new model of the slip of dishonored check form Please note that SAMA will impose a suitable penalty on any bank that does not use the new objection form or does not complete all the required information.