Skip to main content
Entire section Custom print Text Only Rich Text Print / Save as PDF
Download Original PDF

1.1. Introduction to the Framework

No: 000044021528 Date(g): 11/10/2022 | Date(h): 16/3/1444 Status: In-Force

The advancement of technology has brought rapid changes in the financial sector. While allowing customers instant access to products and services, this digital transformation has increased their vulnerability to fraud. Small scale incidents impacting individuals have been replaced by large scale cyber-enabled fraud attacks orchestrated by international organised groups. These attacks expose customers to ever more sophisticated threats and it is vital that financial institutions properly safeguard assets and mitigate the risk of customers being exploited. Fraud not only causes emotional harm and financial losses to customers, it can also damage the reputation and financial health of organisations, reducing confidence in the overall financial sector in the Kingdom of Saudi Arabia. 


 The financial sector recognizes the rate at which fraud risks are evolving and the importance of controls to prevent, detect and respond to suspected fraud. Delivering an effective approach to fraud risk management will help the Kingdom of Saudi Arabia achieve the 2030 Vision aim to build a stable, thriving, and diversified business environment while protecting members of society and making the Kingdom an unattractive place for fraudsters. 
 

The Saudi Central Bank* ("SAMA") has established a Counter-Fraud Framework (“the Framework”) to enable organisations it regulates ("the Member Organisations”) to effectively identify and address risks related to fraud. The objectives of the Framework are as follows: 

  1. To create a common approach for addressing fraud risks within the Member Organisations.

  2. To achieve an appropriate maturity level of fraud controls within the Member Organisations.

  3. To ensure fraud risks are properly managed throughout the Member Organisations.

The Framework will be used to periodically assess the maturity level and evaluate the effectiveness of the Counter-Fraud controls at Member Organisations. The Framework is based on SAMA requirements and industry fraud standards. 

* The "Saudi Arabian Monetary Agency" was replaced by the "Saudi Central Bank" in accordance with The Saudi Central Bank Law No. (M/36), dated 11/04/1442H, corresponding in 26/11/2020G.