The Saudi Central Bank (SAMA) has issued Close-out Netting and Related Collateral Arrangements Regulations for the Kingdom of Saudi Arabia, applying to institutions under SAMA supervision. The regulations govern close-out netting agreements and financial collateral arrangements linked to one or more Qualified Financial Contracts where at least one party is subject to SAMA oversight. They are intended to support enforceability of netting and collateral arrangements irrespective of bankruptcy proceedings and are positioned as aligned with the Kingdom’s legal framework and relevant international standards and best practices. The regulations take effect immediately and apply to all financial institutions regulated and supervised by SAMA.
Saudi Arabian Monetary Authority 2025-02-25
Saudi Central Bank issues close-out netting and related collateral arrangements regulations with immediate effect
The Saudi Central Bank (SAMA) has issued regulations on Close-out Netting and Related Collateral Arrangements for institutions under its supervision. These regulations ensure the enforceability of netting and collateral arrangements linked to Qualified Financial Contracts, regardless of bankruptcy proceedings, aligning with Saudi Arabia's legal framework and international standards. The regulations are effective immediately for all SAMA-regulated institutions.