Operating Rules for Cross Currency Payments using AFAQ Service

The Direct Participant shall not, nor shall it permit any of its clients to engage in or be part of Arbitrage or Speculative Activities to profit from any price differences that may exist from time to time between the Foreign Exchange Rates used within the Service and any rates used in other foreign exchange markets. 7.2. Qualified Payment Messages Payment messages transmitted for processing by the Service must meet the following criteria: a) Single Payment Messages only, b) Customer or Interbank payments in the format specified by SAMA, c) Same day value only - must be a working day in both the Sending and Receiving countries, d) Must include the currency code and amount in the currency of the Sending country as well as the exchange rate for that business day and the currency code and amount in the currency of the Receiving country in the appropriate fields. e) Follow message specifications set out in respective Message Format Guidelines. f) Be for credit to: • The Receiving Direct Participant itself (interbank payment), • A Financial Institution holding an account with the Receiving Direct Participant (Interbank payment), or, • A non-financial institution or person holding an account with the Receiving Direct Participant (Customer payment). 7.3. Payments Processing The payment for the Receiving Country, when transformed by the AFAQ Service, contains the opposite exchange rate and the two currency amounts in the opposite order. The Receiving Direct Participant, for checking of correct calculation of amounts, should use the original exchange rate used by the Sending Direct Participant (or Sending Domestic RTGS system). The AFAQ Service cc will process the transaction as per the following: 1) Payments from countries using the CSM a. Payment Message in the Sending Currency of countries using the CSM: i. DR: Settlement Account of the Sending Direct Participant; ii. CR: Shadow Account of the NCB of the Receiving Country; b. Payment Message in the Receiving Currency: i. DR: Shadow Account of the NCB of countries using the CSM, ii. CR: Control (Technical) Account of the NCB of the Receiving Country 2) Payment to countries using the CSM a. Payment Message in the Sending Currency: i. DR: Control (Technical) Account of the NCB of the Sending Country, ii. CR: Shadow Account of the NCB of the countries using the CSM. b. Payment Message in the Receiving Currency of countries using the CSM: i. DR: Shadow Account of the NCB of the sending country, ii. CR: Settlement Account of the Receiving Direct Participant (in the countries using the CSM). In all cases the entries of both payment messages are posted simultaneously. If the payment cannot be processed by the AFAQ Service cc for any of the reasons listed under Reasons for Rejection in APPX (2) , a rejection message will be sent back to the Sending RPG. The Sending RPG will generate a return payment and send it to the Sending the Direct Participant stating the reason for rejection. A returned payment message must not be resent with the same Unique Message Reference as the original one. It may, after correction of the reason(s) for rejection, be sent as a new payment by the Sending Direct Participant with a different Unique Message Reference, but UETR can be the same. 7.4. Completion of a Payment A payment is deemed to be completed, for the purpose of sending the Payment Completion Confirmation, once it has been validated and accepted by the Receiving Domestic RTGS system for onward transmission to the receiving Direct Participant. The final stage of processing of a payment within the receiving country is subject to the rules, regulations and processing procedures that govern the Receiving Domestic RTGS system. 7.5. Confirmation of Completion The Receiving Domestic RTGS system, after it has validated the incoming payment and accepted it for onward transmission to the Receiving Direct Participant, will generate and send a Payment Completion Confirmation through the Receiving RPG to the AFAQ Se