* 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 to 26/11/2020G.

As an exception to the provisions of the previous Article, the licenses or authorizations previously issued to the persons carrying on banking business in the Kingdom and are effective at the time of promulgation of this Law shall continue to be recognized.

SAMA may, however, request such documents and information from these persons, as it may deem necessary. SAMA with the approval of the Council of Ministers may call upon them to comply with all or any of the provisions of Article 3 of this Law within such period as it may fix.

Any person not authorized basically to carry on banking business in the Kingdom is not allowed to use the word "Bank", or its synonyms, or any similar term in any language on his papers or printed matter, or in his commercial address, or his name or in his advertisements.

The deposit liabilities of a bank shall not exceed fifteen times its reserves and paid-up or invested capital. If the deposit liabilities exceed this limit, the bank must within one month of the date of submission of the statement referred to in paragraph 1 of Article 15, either increase its capital and reserves to the prescribed limit or deposit fifty percent of the excess with SAMA.

Every bank shall maintain with SAMA at all times a statutory deposit of a sum not less than fifteen percent of its deposit liabilities. SAMA may, if it deems it to be in the public interest, vary the aforesaid percentage provided that it shall not be less than 10 percent nor more than 17.5 percent. SAMA may, however, exceed these two limits with the approval of the Minister of Finance and National Economy.

In addition to the statutory deposit provided for in the previous paragraph, every bank shall maintain a liquidity reserve of not less than 15 percent of its deposit liabilities. Such reserve shall be in cash, gold or assets, which can be converted into cash within a period not exceeding 30 days. SAMA may, if deemed necessary, increase the aforesaid percentage up to twenty percent.

No bank shall grant a loan or extend a credit facility, or give a financial guarantee with respect to any natural or juristic person for amounts aggregating more than 25 percent of the Bank's reserves and paid-up or invested capital. SAMA may, in the public interest, and subject to such conditions as it may impose, increase this percentage up to 50 percent.

The provisions of the above paragraph do not apply to transactions between banks or between head offices and their branches or between these branches.

Every bank shall, before declaring distribution of any profits, transfer a sum equal to not less than 25 percent of its net profits, to the statutory reserve, until the amount of that reserve equals as a minimum of the paid-up capital.

No bank shall pay dividends or remit any part of its profits abroad, until its capital expenditures including aggregate foundation expenditures and losses incurred have been completely written off.

Any action taken to declare or pay dividends in contravention to the provisions of this Article shall be considered null and void.

Every bank shall annually appoint two auditors from amongst the approved list of auditors registered with the Ministry of Commerce and Industry. The Auditors shall submit a report on the Balance sheet and profit and loss account. This report shall include whether in the auditor's opinion the Bank's balance sheet duly and correctly represents its financial position and the extent of their satisfaction with any explanations or information they may have requested from the bank's managers or other staff.

With regards to banks taking the form of a company, the report referred to in the above paragraph shall be read together with the annual report of the Bank management in the General Meeting, which must be held within the six months following the end of the bank's financial year. The bank management should send copies of these two reports to SAMA.

The provisions of the first paragraph of this Article shall apply to foreign banks in respect of their branches operating in the Kingdom. They should send a copy of the Auditor's report to SAMA.

Every bank shall furnish SAMA by the end of the following month with a consolidated monthly statement of its financial position relating to the previous month, which shall be true and correct, and be in the form prescribed by SAMA. Every bank shall also furnish SAMA within six months of the close of its financial year with a copy of its annual balance sheet and profit and loss accounts certified by its auditors in the form prescribed by SAMA.

SAMA may, at any time, request any bank to supply it, within a time limit it will specify and in the manner it will prescribe, with any information that it deems necessary for ensuring the realization of the purposes of this Law.

SAMA may, with the approval of the "Minister of Finance and National Economy, conduct an inspection of the books and accounts of any bank, either by SAMA 's own staff or by outside auditors assigned by it. The examination of the bank's books and accounts should take place in the bank's premises. In such a case the bank staff must produce all the required books and records of accounts and other documents in their custody or within their authority and must furnish any information they have relating to the bank.

Any person who comes into possession of information during the performance of his duties in the implementation of this Law, shall not disclose such information or to make use of it in any manner.

SAMA shall periodically publish combined statements of the principal data contained in the returns mentioned in Article 15.

The Minister of Finance and National Economy, in exceptional circumstances, and with the prior approval of the Council of Ministers, may exempt any bank from any provision of this Law or from the regulations issued in execution thereof for a limited period and subject to such other conditions as may be laid down in each case.

The Chairman, the Managing Director, the members of the Board of Directors, head office Manager and Branch manager shall be responsible, each within his own jurisdiction, for any contravention of this Law or the decisions and rules issued for its execution.

The Minister of Finance and National Economy shall appoint a committee of three persons from outside SAMA and specify the conditions and measures to be observed in adjudging contraventions punishable under this Law at the request of SAMA.

The Deputy Premier and the Minister of Finance shall put this Law into effect and it shall come into force from the date of its publication.