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Circular for All Banks Operating in the Kingdom Regarding the Split of Dishonored Cheque Form

No: 291000000796 Date(g): 20/12/2008 | Date(h): 23/12/1429

Effective from 2008-12-28 - Dec 27 2008
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referring to Circular of the Central Bank No. M A T / 9 dated 1424/01/7H The attached is the objection form for the certified check to be used.

We would like to inform you that the central bank has re-examined the items of the check objection document that was communicated to the banks through the aforementioned circular. This was done in collaboration with the Banking Operations Committee, the Commercial Papers Committee, and the Legal Department of the Ministry of Commerce and Industry. As a result, some amendments have been made.

So, we attach ... A copy of the new form for a check dispute. The text to be applied and adhered to by the branches of the central bank and the operating banks in the Kingdom, which should be attached when returning the check to the clearing house or to the client submitting the check for each check individually. We would also like to point out that the responsibility of verifying the legitimacy of the checks submitted to the banks, including the verification of valid legal authorizations, inheritance papers, guardianship and custody documents, identity verification documents, account registration documents, and preservation of such documents, lies entirely with the banks before submitting the checks to the clearing house. The banks also bear the responsibility for any violations that may arise thereafter.

Therefore, we hope to adopt and implement it on your official documents starting from 01/01/1430 AH.

"And notify the central bank (Banking Inspection Department) with a copy of the actions taken."