Implementing Regulations for Enforcement Services Providers

The following terms and expressions- mentioned throughout these regulations- shall have the meanings ascribed to them below, unless stated differently within the context:

– Law: The Enforcement Law.

– Regulations: Regulations of Enforcement Services Providers.

– Ministry: Ministry of Justice.

– Minister: Minister of Justice.

– Agency: The Ministry’s Agency for Enforcement.

– Deputy: The Ministry’s Deputy for Enforcement.

– Circuit: The Enforcement Circuit.

– Committee: The Committee formed under Article 4 of the Regulations.

– Licensee: A Natural person or legal person licensed by the agency to provide an enforcement service.

– Service: The enforcement service provided by the licensee in accordance with the provisions of the Law, its implementing regulations, and this Regulation.

The provisions of the Regulations shall apply to all enforcement services providers mentioned in the first paragraph of Article (ninety-three) of the Law.

 The following conditions are required in order to be licensed to provide the service:

1. The license applicant shall have a valid commercial register for the activity he wishes to provide the service, or have a valid license that authorizes him to provide the remunerated service in the Kingdom.
2.  The license applicant shall have experience of at least two years in the field of licensing for which he is seeking to be licensed, or in similar fields. The agency may waive this requirement when the condition set forth in Paragraph C/7 of this article is fulfilled.
3. The license applicant shall not have a ruling for initiation of any liquidation procedures stated in the bankruptcy law.
4. The credit history of the license applicant shall be free of any negative information affecting his credit balance, as deemed by the committee.
5. The license applicant shall provide an unconditional bank guarantee of one hundred thousand Saudi riyals issued by a local bank. The guarantee shall be valid during the authorization period and returned to its owner in the event that the license expires without the licensee having obligations or financial claims resulting from providing the service subject of the licensing. The agency may reduce the value to a quarter for some categories of licensees. Further, presenting an insurance document that covers the errors of the service provider may substitute for the guarantee.
6. The license applicant for the delivery of movable assets service shall be an authorized company.
7. In the event that the license applicant was a natural person, the following shall be observed:
   a- The license applicant should be legally competent, has not been previously convicted of any crime against honor or trust, unless he has been rehabilitated.
   b- The license applicant shall be qualified to provide the service as determined by the agency. Further, the judicial receiver shall have a valid license to practice the profession of accounting or law.
   c- The license applicant must pass the training programs and tests set by the agency.

A committee of three qualified and experienced members shall be formed upon the deputy’s decision. The term of membership shall be set to 3 years, and may be renewed for a similar period. The Committee shall undertake:

1. Studying and examining licensing applications submitted to the agency and making the necessary recommendations in this regard.
2. Recommending the imposition of penalties stipulated in the Regulations on the licensees.
3. Addressing the concerned authorities in order to request any information or clarifications necessary to carry out its duties.

The deputy issues a licensing decision, determining the type of service, its sub-category – if any – and the territorial jurisdiction in which the service is licensed. The license shall be set to 3 years, and may be renewed upon the licensee’s request ninety days at least prior to its expiration.

The agency shall establish a list of licensed services providers, in which the licensee shall be listed after the completion of procedures. The list shall include the basic information of the licensee, the type of licensed service, its sub-category – if any – and its territorial jurisdiction.

The service may not be referred to an unlicensed service provider that is included in the referral list in the scope in which he is licensed, with the exception of the following:
1- If the enforcement parties agree to select services providers not included in the list, then the circuit may select the services providers, provided that the latter commit to working in accordance with the provisions of the Law and the Regulations.
2- In the absence of a licensee within the territorial jurisdiction of the circuit, the latter may refer the service to a licensed service provider outside the territorial jurisdiction of the license. In case this was not possible, the circuit may refer the service to an unlicensed service provider, subject to the agency’s approval and the issuance of a temporary license.

Subject to what is referred to the Entrustment and Liquidation Center, the service shall be automatically transferred to the licensees in a way that guarantees fair opportunities. The deputy – based on the circuit’s recommendation if the parties agree or for a specific reason – may refer the service to another licensee or more.

The licensee may request the permanent or temporary suspension of his license, and the agency may accept the request subject to the referred requests of the suspension requestor. A licensee whose license is suspended may not request a suspension lift before ninety days from the date of suspension.

Subject to the obligations stipulated in the Law, the Regulations, as well as the relevant regulations and instructions, the licensee shall:

1. Establish an office in the Kingdom, and notify the agency of his address and any change.
2. Place his name, the license’s number, date on all his publications and correspondences related to the enforcement service actions.
3. Issue identification cards for his personnel to show when providing the service.
4. Maintain the confidentiality of information and data and refrain from disclosing thereof or publishing any writing or statement related to the work they undertake by any means, except as the nature of service provision requires.
5. Document his work procedures and retain a copy of thereof for a period of at least five years from the date of completion of the procedure.
6. Provide the agency with all requested periodic reports and documents related to service provision.
7. Perform the works referred to him and not refraining from accomplishing thereof within the scope of his license, except by virtue of an excuse acceptable to the agency.
8. Provide the service themselves or through one of his personnel who meet the requirements stated in Paragraph (7) of Article (3) of the Regulations. This shall not be affected if:
   a- Draw, in some of the ancillary business to provide the service, on someone who does not meet the requirements, provided that the person works under his direct supervision and responsibility.
   b- Assign – under their responsibility and supervision – some of the service outside the scope of his license to a licensee in that field, provided that the agency is notified and that the assigned work does not exceed one third of the value of the referral.
9. Attend the training programs established by the agency, along with those involved in the enforcement service.
10. Not perform a work related to an enforcement request that concerns him or one of his spouses, relatives, or in-laws to the fourth degree, or any work that he is a party to. This shall also apply to his direct personnel providing the service.
11. Not perform any work that would conflict with his current or potential interests or those of the personnel of the licensees working for him.
12. Not participate in the bids assigned to him or his personnel.
13. Not amend or cross out the forms or records he receives.
14. Without prejudice to his responsibility for the actions of his personnel, the licensee undertakes to inform the agency of the violations of his personnel regarding the provisions of the law, its regulations and the regulations. The deputy – based on the recommendation of the Committee stated under Article (4) of the regulations – may issue a decision preventing the violator from providing any service temporarily or permanently, after conducting an investigation.

The judicial sale agent shall- when necessary- receive the moveable property that shall be sold from the time the circuit decides to receive it, and undertakes preserving it until sold. He may entrust the moveable property with a licensed judicial custodian.

Before referring the service to a judicial receiver or a judicial custodian, the circuit may request an unconditional financial guarantee from the latter issued by a local bank, not exceeding five percent of the assessed value of the funds subject to custody or safeguarding. The guarantee shall be returned once the work is completed. A substitute for this would be presenting an insurance document that covers the errors of the service provider.

In the event of suspension, revocation or expiration of the license, the licensees must liquidate his business within a period not exceeding (sixty) days from the date of suspension, revocation or expiration. The agency may extend this period.

The circuit shall estimate the equivalent fee for the licensee, taking into consideration the manuals and schedules issued by the agency in this regard, with the exception of:
1-Requests referred to the Entrustment and Liquidation Center.
2-The parties agreeing on a specific fee.

Without prejudice to the civil right and the penalties stipulated in other regulations, the deputy may, by a reasoned decision – pursuant to the Committee’s recommendation – impose one of the following penalties on the licensee if the latter violate the provisions of the law, its implementing regulations, the Regulations or decisions and instructions issued hereby:
1-A warning notice.
2-Suspension of the license for a period not exceeding one year.
3-Revocation of the license and prohibition of requesting a new one, ever or temporarily.

The deputy shall issue the necessary decisions, manuals and forms to enforce the Regulations. The agency shall supervise the services providers, and it may digitize all or some of the procedures stated in the Regulations and require service providers to do so. The agency may use artificial intelligence technologies to carry out enforcement service.

The deputy determines – upon his decision – the minimum human and material capabilities needed to provide the service, as well as the certificates and documents required for licensing.

These regulations shall replace the regulations of enforcement service providers issued by Ministerial Decision no. (11326) on 14/05/1437 AH. Further, they shall not affect the validity of existing licenses and shall go into effect as of the day of their issuance.