Chapter 3 Chapter 3 Eligibility
Article 5
This Regulation shall apply to Eligible Accounts held at any Conventional Bank or Islamic Bank operating in the Kingdom.
Article 6
Without prejudice to the provisions of Article 5 of this Regulation, the Board may, at its discretion, exclude (in whole or in part) the following:
1) compensation payments to any Eligible Depositor and/or Investor of the defaulting bank who are entitled to claim in a similar scheme established in another jurisdiction.2) the requirement to contribute to the concerned Fund by any Bank in the Kingdom whose Eligible Accounts are (in whole or in part) covered by a similar scheme established in another jurisdiction, provided that evidence of such coverage is provided to the Board to its satisfaction.Article 7
This Regulation seeks to protect Eligible Depositors and/or Investors only.
The Board may, upon the approval of the CBB, vary the upper limit of amounts constituting Eligible Accounts covered under this regulation at any time. The Board will pay due regard to the size of the concerned Fund when setting the limits described above.
Article 8
Without prejudice to the provisions of Article 7 of this Regulation, this Regulation shall not apply to:
1) Accounts of shareholders with 10% or more shareholding (ordinary or preference), board members and senior managers of the defaulting bank.2) Accounts of persons whose identity cannot be ascertained.3) Accounts which, in the opinion of the Board, include amounts that have been illegally gained or obtained by illicit or dubious means.
