New enforcement service regulations at the Board of Grievances: Full details
In a move aimed at enhancing the efficiency of the judicial system and ensuring swift justice, the Board of Grievances in the Kingdom of Saudi Arabia has approved a set of governing regulations regulating the work of enforcement service providers before its courts. This step complements the ongoing judicial development in the Kingdom, as the Board has established a precise regulatory framework that defines the mechanisms for licensing, selection, and the obligations of service providers, thus guaranteeing the protection of rights and the integrity of procedures.
The context of judicial development and the importance of the decision
These new regulations come within the framework of the comprehensive development underway in the Kingdom's administrative judiciary, which aims to automate procedures and improve the quality of services provided to litigants. These regulations are of paramount importance as they address regulatory gaps in the relationship between judicial departments, enforcement agencies, and service providers. This regulation is expected to expedite the implementation of administrative judgments, thereby enhancing the Kingdom's investment climate and reinforcing the principles of transparency and integrity—key objectives of the Kingdom's Vision 2030.
Scope of application and licensing conditions
Article 2 of the decision stipulates that these regulations apply to all enforcement service , emphasizing that only those who meet the regulatory requirements may provide such services. In the interest of procedural flexibility, the regulations make two exceptions where non-licensed providers may be utilized:
- The first scenario: The implementing parties agree to choose a specific service provider, provided that the department approves and fully complies with the regulations.
- The second case: If a licensed service provider is unavailable, the department may grant a temporary license to another service provider to complete the task.
Professional commitments and promoting integrity
The regulations established strict standards to ensure integrity and prevent conflicts of interest, requiring service providers to have a physical presence within the Kingdom and to document and retain all their operations for a minimum of five years. The regulations also emphasized:
- Conflict of interest prohibition: The service provider or his/her associates are prohibited from directly carrying out any execution request that pertains to them or their relatives up to the fourth degree.
- Strict confidentiality: Disclosure of information or data related to enforcement cases is prohibited.
- Identification cards: Requiring employees to carry identification cards to prevent impersonation and regulate field work.
- Prohibition of participation in auctions: The service provider is prohibited from participating in auctions that it supervises in order to ensure impartiality.
Financial guarantees and safekeeping of funds
To safeguard the assets of those against whom judgments have been issued, Articles 7 and 8 regulate the mechanisms for preserving assets. They obligate the judicial sales agent to receive and safeguard the movable assets, and authorize the judicial department to request financial guarantee from the custodian or judicial treasurer, not exceeding 5% of the value of the assets, or the submission of an insurance policy covering professional errors, to ensure that the assets are not damaged or tampered with.
Determining fees and completing the work
Regarding fees, the regulations entrust the judicial department with determining the "fair market rate" for service providers, unless the parties agree otherwise. The regulations also address cases of license cancellation or suspension, requiring the service provider to liquidate its operations within a maximum period of 60 days to ensure that the interests of litigants are not disrupted and that enforcement procedures proceed smoothly.
