Law of Payments and Payment Services

In this Law, the following words and phrases shall have the meanings assigned thereto, unless the context requires otherwise: Law: Law of Payments and Payment Services. SAMA: The Saudi Central Bank. Board: SAMA’s Board of Directors. Regulations: The implementing regulations and any other regulations issued by SAMA in accordance with this Law. Person: Any natural or legal person. Payment Systems: A set of instruments, procedures, and rules for processing and settling payment orders and clearing transactions related thereto within the Kingdom or abroad. Payment Services: Services related to the execution, transfer, or processing of payment transactions and payment instruments; management of transfer transactions and e-money payments through payment platforms or instruments; payment wallets in the form of electronic accounts or records; provision of payment information and account services; and other related services specified in the regulations. Payment Order: An order or set of instructions made by a member with regard to a money transfer request, as a cash claim in the form of a book entry, to the order of a beneficiary who is a member of any payment system, to be deposited in the beneficiary’s account; this shall include orders or instructions relating to the transfer or withdrawal of amounts to or from an account. Member: Any person who has a payment account through which he can make payment orders or who is a beneficiary thereof. Client: Any person who receives payment services or uses payment systems. Consumer: The ultimate beneficiary of a payment service. Funds: Banknotes or coins of any currency that are physically or electronically kept, and of any other type of currency specified in the regulations. Systemically Important Payment System (SIPS): Any payment system classified by SAMA as important pursuant to certain criteria set thereby based on the volume, value, and nature of transactions carried out through such system and its connection with settlement and clearing systems within the Kingdom and abroad. Guarantee: Cash, or any asset that may be converted into cash, that is provided pursuant to a lien or any other similar agreement to guarantee the rights and liabilities that may arise for the benefit of members under SIPS. Clearing Arrangements: Arrangements made between transacting parties to calculate net liabilities, in accordance with the relevant rules of payment Law of Payments and Payment Services systems. Default Management Arrangements: Clearing arrangements or any other arrangements relating to settlement of financial positions resulting from transactions associated with payment systems and services for the purpose of reducing or mitigating risks that may arise in the event that a payment system member, or payment service provider, is actually or potentially incapable of paying his due liabilities, including enforcement or transfer of guarantees. Settlement Finality: The point at which a payment order is deemed to be duly completed in a payment system, in accordance with the rules of said system, and is deemed binding and enforceable and may not be reversed, revoked, or modified by its issuing member or his agent, in accordance with SIPS rules. Final Payment Order: A payment order that is subject to a settlement finality, in accordance with SIPS rules.