| 13. | The Financial Institution’s board of directors shall be responsible for ensuring the fitness and propriety of candidates for Senior Positions, in accordance with the Financial Institution’s relevant policy, requirements and procedures.
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| 14. | The Financial Institution shall adopt clear and precise standards and procedures to assess and verify the fitness and propriety of the Senior Position holders or candidates. The fit and proper criteria shall, as a minimum, include the following:
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| | a. | Honesty, integrity and good reputation and fairness: The candidate must have personal qualities, such as honesty; integrity; good reputation and fairness, and must not have been convicted of any crime impinging on honor or integrity, unless rehabilitated.
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| | b. | Competence and capability: The candidate must have the necessary academic qualification, or adequate experience, skills to perform his/her role effectively, as well as the ability to understand the technical requirements of the business, the risks and the management process. In addition, the candidate must meet all requirements set by SAMA.
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| | c. | Financial capability efficiency: The candidate must have the efficiency and experience needed to manage his/her financial obligations and affairs prudently and properly, this does not mean the limited financial possibilities of the candidate.
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| | d. | Independence: The candidate must have the necessary independence to perform the tasks and duties of the proposed Senior Position and shall not have employment interests or obligations, or any other situations which might give rise to conflict of interests or which could, in any way, impair the candidate’s ability to independently perform the duties of the proposed position.
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| 15. | The assessment process carried out by the Financial Institution, on a regular basis or prior to requesting SAMA’s non-objection, shall be documented and supported by relevant documents and information. The Financial Institution shall check the validity of the information provided by the candidates for the Senior Positions from independent and reliable internal and external sources. The information and the results of the assessment process obtained by the Financial Institution shall be kept confidential. The approval of the candidate, if necessary, shall be obtained to access the information.
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| 16. | The Financial Institution shall explain the Fit and Proper Form to candidates and ensure the completeness and accuracy of the information provided. The Financial Institution shall also disclose in writing to SAMA any information it may find relevant to the fitness and propriety of the candidate and any changes that may affect the validity, accuracy and completeness of the information provided in the Form, even if after obtaining SAMA’s non-objection, within a period not exceeding (5) business days from the date on which such information was obtained or the change has occurred.
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| 17. | The Financial Institution and candidates for Senior Positions shall fully and clearly disclose to SAMA all information relevant to the fit and proper requirements. The information provided shall, as a minimum, include the following:
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| | a. | all the information and documents required in the Fit and Proper Form;
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| | b. | any material information that may affect SAMA's decision to issue non-objection on the nomination, appointment, interim appointment or the renewal of interim appointment term; and
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| | c. | any other relevant information becomes known to the financial institution or candidate.
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| 18. | SAMA may request any information or documents it deems necessary for evaluating requests for non-objection on the nomination, appointment, interim appointment or the renewal of interim appointment term and may request to interview the candidate as well. The Financial Institution shall provide SAMA with the required information and documents within a period determined by SAMA or within (10) business days, as a maximum, from the date of requesting such information and/or documents. If the Financial Institution fails to provide so within the specified period, SAMA shall have the right to close the request.
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| 19. | SAMA may conduct background checks using various means it deems appropriate to ensure the validity, accuracy and completeness of the information and documents provided by the Financial Institution, and to ensure the fitness and propriety of candidates. Accordingly, SAMA will take actions it deems appropriate whether to grant non-objection on requests received or to reject such requests without any responsibility whatsoever on SAMA. Subsequently, the Financial Institution shall inform the candidate in that. |
| 20. | SAMA may cancel the non-objection granted to the Financial Institution on the appointment, interim appointment or the renewal of interim appointment term for a current Senior Position holder if SAMA finds that he/she does not cooperate, neglects or omits his/her duties, or if SAMA detects any concealment, misrepresentation or misreporting of information or any violation or circumvention of these Requirements or any other instructions issued by SAMA without prejudice to the statutory procedures towards the financial institution and the person concerned. |
| 21. | The Financial Institution shall periodically, and at least annually, assess the fitness and propriety of the Senior Position holders. In the event of such assessments leading to any information or findings that may materially compromise the fitness and propriety of the candidates, the Financial Institution shall immediately report such information and findings to SAMA.
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| 22. | The Financial Institution shall notify SAMA in writing, in accordance with email addresses indicated in Appendix (C), when the person appointed commence his/her work, when resignation is accepted, when position holder leaves work and when employment is terminated for whatever reason, within (5) business days from the date of such events.
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| 23. | The Financial Institution shall provide SAMA with biannual reports (at the end of both June and December) including data of Senior Position holders and data on vacant Senior Positions, in accordance with Appendix (A) hereof.
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