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Banking Sector
Laws and Regulations
Licensing Provisions
Types of Licenses
Licensing Guidelines
Licensing Guidelines and Minimum Criteria
1. Objective of the Licensing Guidelines/Criteria and Overview of the Application Process
2. General Licensing Guidelines for Banks
1. Overview
2. Use of Restricted Words and Expressions
3. Minimum Licensing Criteria for Banks
A. Capital
B. Bank Ownership
C. Corporate Governance
D. Risk Management and Controls
E. Compliance & Anti Money Laundering and Combating Terrorism Financing (AML/CTF)
F. Information Technology (IT), Accounting Systems and Outsourcing
G. External and Internal Audit Arrangements
H. Supervision by Home Supervisor (Foreign Bank Branch Application)
4. Application Process Guidelines
1. Pre-Application Consultations
2. Information Required to Be Submitted with the Application
3. Submission of Application
4. Processing and Notification
Additional Licensing Guidelines and Criteria for Digital-Only Banks in Saudi Arabia Feb 2020
Introduction
Purpose and Scope
Licensing Conditions
Business Plan
Capital and Liquidity Requirements
Physical Presence
Governance
Risk Management and Control
Compliance & Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT)
Technology and Cybersecurity Risks
Independent Assessment
Outsourcing
Exit Plan
Prudential and Supervisory Requirements
Consumer Protection
Application Forms
Application Process
Anti Money Laundering and Combating the Financing of Terrorism
Cyber Risk Control
Cyber Resilience
Cyber Resilience Fundamental Requirements (CRFR)
Cyber Security Framework
Financial Sector Cyber Threat Intelligence Principles
Minimum Verification Controls
Business Continuity Management Framework
Financial Entities Ethical Red-Teaming
Information Technology Governance
Counter Fraud
Counter-Fraud Framework
Outsourcing and Third Party
Rules on Outsourcing
I. Introduction
A. Background
B. Definitions
II. Applicability of the Rules
C. Level of Application
D. Scope
E. Related Regulations and "No Objections" Requirements
III. Governance
F. Board of Directors
G. Reporting Requirements
IV. Outsourcing Policy and Procedures
H. Assessment of Outsourcing Options
I. Contractual Arrangements
J. Material Outsourcing
K. Data Confidentiality and Security
L. Control and Monitoring of Outsourcing
M. Risk Assessment
N. Business Continuity Management
O. Access to Outsourced Data
P. Monitoring the Relationship
Q. Audit Arrangements
R. Documentation Requirements
V. Outsourcing to Third-Party Service Providers Located Overseas
VI. Outsourcing for Foreign Bank Branches (Material and Non-Material)
Annex 1 - Annual Return on Outsourcing Services Provided and Received
Data Privacy
Governance and Internal Control
Key Principles of Governance in Financial Institutions
Requirements for Appointments to Senior Positions
Banks Remuneration Rules
1. General Requirements
1.1 Background
1.2 Objective
1.3 Scope of Application
1.4 Effective Date
1.5 Definitions
2. Governance of Remuneration
2.1 Board of Directors Responsibilities
2.2 Formation and Responsibilities of the Nomination and Remuneration Committee
2.3 Senior Management Responsibilities
2.4 Misconduct
2.5 Remuneration Policy
3. Performance Measurement
4. Determining Remuneration
4.1 Alignment of Remuneration with Risk
4.2 Remuneration Structure
4.3 Remuneration Adjustment
5. Remuneration Control
5.1 Disclosure Requirements
5.2 Compliance Report
5.3 Supervisory Review
Appendix-I: Coverage of the Compliance Report
Compliance Principles and Internal Control
Principles of Internal Auditing for Local Banks Operating in Saudi Arabia
Chapter One: Introduction, Definitions, and General Provisions
1. Introduction
2- Definitions
3. General Provisions
4. Scope of Application
Chapter Two: Roles and Responsibilities of the Board and Executive Management Regarding Internal Audit
Principle (1): Board Responsibilities for Internal Audit
Principle (2): Responsibilities of the Audit Committee towards the Unit
Principle (3): Roles and Responsibilities of Executive Management Regarding Internal Audit
Chapter Three: Functions, Tasks, and Responsibilities of the Unit.
Principle (4): Key Characteristics of the Unit
Independence and Objectivity
Professional Competence and Due Diligence
Professional Ethics for the Head of the Unit and Its Staff
Principle (5): Internal Audit Policy
Principle (6): Organization, Tasks, and Responsibilities of the Unit
Organizational Structure and Reporting
Requirements and Responsibilities of the Head of the Unit
SAMA's Non-Objection to Appointing or Changing the Unit Head
Internal Work Procedures for the Unit
Units and Entities Subject to Internal Audit and the Audit Cycle
Risk Assessment Methodology
Risk-Based Internal Audit Plan
Information Technology for the Unit
Quality Assurance and Performance Improvement Program
Periodic Reports to the Audit Committee
Database and Document/Report Storage
Principle (7): Scope of the Unit's Work
Principle (8): The Unit's Relationship with Second Line of Defense Units and External Auditors
(A) Relationship with Second Line of Defense Units
(B) Relationship with External Auditors
Principle (9): Internal Audit of the Bank’s Subsidiaries
Principles of compliance for commercial banks operating in the Kingdom of Saudi Arabia
Definitions
Introduction
Principles
Responsibilities of the Board of Directors Regarding Compliance.
Principle (1): Oversight of Non-Compliance Risk Management
Responsibilities of Senior Management Regarding Compliance
Principle (2) General Principle: Effective Management of Non-Compliance Risks
Principle (3) Preparation, Update, and Approval of Compliance Policy, Responsibility, Sanctions, Monitoring, and Reporting on Non-Compliance Risks
Principle (4) Responsibility for Establishing and Developing the Compliance Unit
Compliance Unit Principles
Principle (5) Independence
Principle (6): Resources
Principle (7) Responsibilities of the Compliance Unit
Principle (8): Relationship Between the Compliance Unit and the Internal Audit Unit
Other Matters
Principle (9) Matters Related to External Operations
Principle (10) Delegation of Compliance Unit Tasks
Shariah Governance Framework for Local Banks Operating in Saudi Arabia
Chapter One: Preliminary Provisions
Article 1: Introduction
Article 2: Objectives of the Shariah Governance Framework
Article 3: Definitions
Chapter Two: Composition of the Shariah Governance Framework
Article 4: Composition of the Shariah Governance Framework
Chapter Three: Responsibilities of the Board and the Executive Management
Article 5: Responsibilities of the Board of Directors
Article 6: Responsibilities of the Executive Management
Chapter Four: Formation, Appointment, and Membership of the Shariah Committee
Article 7: Formation of the Shariah Committee 1
Article 8: Membership of the Shariah Committee
Article 9: Shariah Committee Meetings
Chapter Five: Responsibilities and Duties of the Shariah Committee
Article 10: Responsibilities of the Shariah Committee
Article 11: Responsibilities and Duties of the Chairperson
Article 12: Responsibilities and Duties of the Shariah Committee Members
Chapter Six: Independence and Confidentiality of Information
Article 13: Independence
Article 14: Confidentiality of Information
Article 15: Maintaining Professional Ethics, Judgment, and Consistency to Ensure Compliance with Shariah Principles and Rules
Chapter Seven: Internal Control
Article 16: Internal Control
Chapter Eight: Islamic Window Operations
Article 17: Islamic Window Operations2
Chapter Nine: The Development Process of Shariah-Compliant Products
Article 18: The Development Process of Shariah-Compliant Products
Related Parties Rules for Banks
1. Introduction
2. Definitions
3. Scope and Level of Application
4. Governance and Risk Management
5. Exposure/Transaction Limits
5.1 Maximum Exposure/Transaction Limits
5.2 Exposures/Transactions Exempted from Related Parties Limits.
6. Security for Related Party Transactions
7. Reporting
8. Effective Date
Appendix-I
Prudential and Supervisory Requirements
Preface
Scope of Application of Basel Framework
Introduction
Objective
Definition
Application of the Framework on Banking Groups in Saudi Arabia and Reporting Requirements
Scope of Application
Pillar 2
Pillar 3
Reporting Requirements
Minimum Capital Requirements
Minimum Capital Requirements for Credit Risk
1. Introduction
2. Scope of Application
3. Implementation Timeline
4. SAMA Reporting Requirements
5. Overview of Risk-Weighted Assets Approaches for Credit Risk
6. Due Diligence Requirements
7. Standardized Approach: Individual Exposures
Exposures to Sovereigns
Exposures to Public Sector Entities (PSEs)
Exposures to Multilateral Development Banks (MDBs)
Exposures to Banks
Exposures to Covered Bonds
Exposures to Securities Firms and Other Financial Institutions
Exposures to Corporates
Subordinated Debt, Equity and Other Capital Instruments
Retail Exposure Class
Real Estate Exposure Class
Risk Weight Multiplier to Certain Exposures with Currency Mismatch
Off-Balance Sheet Items
Exposures that Give Rise to Counterparty Credit Risk
Credit Derivatives
Defaulted Exposures
8. Standardized Approach: the Use of External Rating
Recognition of External Ratings by SAMA
Implementation Considerations
9. Standardized Approach: Credit Risk Mitigation
Overview of Credit Risk Mitigation Techniques
Collateralized Transactions
On-Balance Sheet Netting
Guarantees and Credit Derivatives
10. IRB Approach: Overview and Asset Class Definitions
Categorization of Exposures
Definition of Corporate Exposures
Definition of Sovereign Exposures
Definition of Bank Exposures
Definition of Retail Exposures
Definition of Equity Exposures
Definition of Eligible Purchased Receivables
Foundation and Advanced Approaches
Corporate, Sovereign and Bank Exposures
Retail Exposures
Equity Exposures
Eligible Purchased Receivables
Adoption of the IRB Approach for Asset Classes
11. IRB Approach: Risk Weight Functions
Explanation of the Risk-Weight Functions
Risk-Weighted Assets for Exposures that are in Default
Risk-Weighted Assets for Corporate, Sovereign and Bank Exposures that are not in Default
12. IRB Approach: Risk Components
Risk Components for Corporate, Sovereign and Bank Exposures
13. IRB Approach: Supervisory Slotting Approach for Specialized Lending
Risk Weights for Specialized Lending (PF, OF, CF and IPRE)
Risk weights for Specialized Lending (HVCRE)
Expected Loss for Specialized Lending (SL) Exposures Subject to the Supervisory Slotting Criteria
Supervisory Slotting Criteria for Specialized Lending
14. IRB Approach: RWA for Purchased Receivables
Risk-Weighted Assets for Default Risk
Risk-Weighted Assets for Dilution Risk
Treatment of Purchase Price Discounts for Receivables
Recognition of Credit Risk Mitigants
15. IRB Approach: Treatment of Expected Losses and Provisions
Calculation of Expected Losses
Calculation of Provisions
Treatment of EL and Provisions
16. IRB Approach: Minimum Requirements to Use IRB Approach
Section 1: Composition of Minimum Requirements
Section 2: Compliance with Minimum Requirements
Section 3: Rating System Design
Section 4: Risk Rating System Operations
Section 5: Corporate Governance and Oversight
Section 6: Use of Internal Ratings
Section 7: Risk Quantification
Section 8: Validation of Internal Estimates
Section 9: Supervisory LGD and EAD Estimates
Section 10: Requirements for Recognition of Leasing
Section 11: Disclosure Requirements
17. Transition
Phase-in for Standardized Approach Treatment of Equity Exposures
Phase-in for the Removal of the Internal Ratings-Based Approach for Equity Exposures
18. Securitization: General Provisions
Scope and Definitions of Transactions Covered Under the Securitization Framework
Definitions and General Terminology
Operational Requirements for the Recognition of Risk Transference
Due Diligence Requirements
Calculation of Capital Requirements and Risk-Weighted Assets
Caps for Securitization Exposures
Treatment of Credit Risk Mitigation for Securitization Exposures
Simple, Transparent and Comparable Securitizations: Scope of and Conditions for Alternative Treatment
Simple, Transparent and Comparable Term Securitizations: Criteria for Regulatory Capital Purposes
Criterion A1: Nature of Assets
Criterion A2: Asset Performance History
Criterion A3: Payment Status
Criterion A4: Consistency of Underwriting
Criterion A5: Asset Selection and Transfer
Criterion A6: Initial and Ongoing Data
Criterion B7: Redemption Cash Flows
Criterion B8: Currency and Interest Rate Asset and Liability Mismatches
Criterion B9: Payment Priorities and Observability
Criterion B10: Voting and Enforcement Rights
Criterion B11: Documentation Disclosure and Legal Review
Criterion B12: Alignment of Interest
Criterion C13: Fiduciary and Contractual Responsibilities
Criterion C14: Transparency to Investors
Criterion D15: Credit Risk of Underlying Exposures
Criterion D16: Granularity of the Pool
Simple, Transparent and Comparable Short-Term Securitizations: Criteria for Regulatory Capital Purposes
Criterion A1: Nature of Assets (Conduit Level)
Criterion A1: Nature of Assets (Transaction Level)
Additional Guidance for Criterion A1
Criterion A2: Asset Performance History (Conduit Level)
Criterion A2: Asset Performance History (Transaction Level)
Additional Requirement for Criterion A2
Criterion A3: Asset Performance History (Conduit Level)
Criterion A3: Asset Performance History (Transaction Level)
Additional Requirement for Criterion A3
Criterion A4: Consistency of Underwriting (Conduit Level)
Criterion A4: Consistency of Underwriting (Transaction Level)
Additional Requirement for Criterion A4
Criterion A5: Asset Selection and Transfer (Conduit Level)
Criterion A5: Asset Selection and Transfer (Transaction Level)
Additional Requirement for Criterion A5
Criterion A6: Initial and Ongoing Data (Conduit Level)
Criterion A6: Initial and Ongoing Data (Transaction Level)
Additional Requirement for Criterion A6
Criterion B7: Full Support (Conduit Level Only)
Additional Requirement for Criterion B7
Criterion B8: Redemption Cash Flow (Transaction Level Only)
Additional Requirement for Criterion B8
Criterion B9: Currency and Interest Rate Asset and Liability Mismatches (Conduit Level)
Criterion B9: Currency and Interest Rate Asset and Liability Mismatches (Transaction Level)
Additional Requirement for Criterion B9
Criterion B10: Payment Priorities and Observability (Conduit Level)
Criterion B10: Payment Priorities and Observability (Transaction Level)
Criterion B11: Voting and Enforcement Rights (Conduit Level)
Criterion B11: Voting and Enforcement Rights (Transaction Level)
Criterion B12: Documentation, Disclosure and Legal Review (Conduit level Only)
Additional Requirement for Criterion B12
Criterion B13: Alignment of Interest (Conduit Level Only)
Criterion B14: Cap on Maturity Transformation (Conduit Level Only)
Criterion C15: Financial Institution (Conduit Level Only)
Criterion C16: Fiduciary and Contractual Responsibilities (Conduit Level)
Criterion C16: Fiduciary and Contractual Responsibilities (Transaction Level)
Additional Requirement for Criterion C16
Criterion C17: Transparency to Investors (Conduit Level)
Criterion C17: Transparency to Investors (Transaction Level)
Criterion D18: Credit Risk of Underlying Exposures (Transaction Level Only)
Criterion D19: Granularity of the Pool (Conduit Level Only)
19. Securitization: Standardized Approach
Standardized Approach (SEC-SA)
Resecuritisation Exposures
Alternative Capital Treatment for Term STC Securitizations and Short- Term STC Securitizations Meeting the STC Criteria for Capital Purposes
20. Securitization: External- Ratings-Based Approach (SEC- ERBA)
External-Ratings-Based Approach (SEC-ERBA)
Operational Requirements for Use of External Credit Assessments
Operational Requirements for Inferred Ratings
Alternative Capital Treatment for Term STC Securitizations and Short- Term STC Securitizations Meeting the STC Criteria for Capital Purposes
21. Securitization: Internal Assessment Approach (SEC- IAA)
Internal Assessment Approach (SEC-IAA)
22. Securitization: Internal- Ratings-Based Approach
Internal Ratings-Based Approach (SEC-IRBA)
Definition of KIRB
Definition of Attachment Point (A), Detachment Point (D) and Supervisory Parameter (p)
Calculation of Risk Weight
Alternative Capital Treatment for Term Securitizations and Short-Term Securitizations Meeting the STC Criteria for Capital Purposes
23. Securitizations of Non- Performing Loans
Securitization of Non-Performing Loans
24. Equity Investments in Funds
The Look-Through Approach
The Mandate-Based Approach
The Fall-Back Approach
Treatment of Funds that Invest in Other Funds
Partial Use of an Approach
Leverage Adjustment
Application of the LTA and MBA to Banks Using the IRB Approach
25. Capital Treatment of Unsettled Transactions and Failed Trades
Overarching Principles
Scope of Requirements
Capital Requirements for DvP Transactions
Capital Requirements for Non-DvP Transactions (Free Deliveries)
26. Illustrative Risk Weights Calculated Under the Internal Ratings-Based (IRB) Approach to Credit Risk
27. Illustrative Examples for Recognition of Dilution Risk When Applying the Securitization Internal Ratings-Based Approach (SEC-IRBA) to Securitization Exposures
28. Equity Investments in Funds: Illustrative Example of the Calculation of Risk-Weighted Assets (RWA) Under the Look-Through Approach (LTA)
29. Equity Investments in Funds: Illustrative Example of the Calculation of RWA Under the Mandate-Based Approach (MBA)
30. Equity Investments in Funds: Illustrative Examples of the Leverage Adjustment
Minimum Capital Requirements for Market Risk
1- Introduction
2- Definitions
3- Scope of Application
Methods of Measuring Market Risk
4- Trading Book Policy Statement (TPS) and Definition of a Trading Desk
5- Boundary Between the Banking Book and the Trading Book
Scope of the Trading Book
Standards for Assigning Instruments to the Regulatory Books
SAMA Supervisory Expectation
Documentation of Instrument Designation
Restrictions on Moving Instruments Between the Regulatory Books
Treatment of Internal Risk Transfers
6- Standardised Approach: General Provisions and Structure
General Provisions
Structure of the Standardised Approach
Definition of Correlation Trading Portfolio
7- Standardised Approach: Sensitivities-Based Method
Main Concepts of the Sensitivities-Based Method
Instruments Subject to Each Component of the Sensitivities-Based Method
Process to Calculate the Capital Requirement Under the Sensitivities-Based Method
Sensitivities-Based Method: Risk Factor and Sensitivity Definitions
Sensitivities-Based Method: Definition of Delta Risk Buckets, Risk Weights and Correlations
Sensitivities-Based Method: Definition of Vega Risk Buckets, Risk Weights and Correlations
Sensitivities-Based Method: Definition of Curvature Risk Buckets, Risk Weights and Correlations
8- Standardised Approach: Default Risk Capital Requirement
Main Concepts of Default Risk Capital Requirements
Instruments Subject to the Default Risk Capital Requirement
Overview of Drc Requirement Calculation
Default Risk Capital Requirement for Non-Securitisations
Default Risk Capital Requirement for Securitisations (Non-CTP)
Default Risk Capital Requirement for Securitisations (CTP)
9- Standardised Approach: Residual Risk Add-on
Instruments Subject to the Residual Risk Add-on
Calculation of the Residual Risk Add-on
10- Internal Models Approach: General Provisions
General Criteria
Qualitative Standards
Model Validation Standards
External Validation
Stress Testing
11- Internal Models Approach: Model Requirements
Specification of Market Risk Factors
Model Eligibility of Risk Factors
12- Internal Models Approach: Backtesting and P&L Attribution Test Requirements
Backtesting Requirements
PLA Test Requirements
Treatment for Exceptional Situations
13- Internal Models Approach: Capital Requirements Calculation
Calculation of Expected Shortfall
Calculation of Capital Requirement for Modellable Risk Factors
Calculation of Capital Requirement for Non-Modellable Risk Factors
Calculation of Default Risk Capital Requirement
Calculation of Capital Requirement for Model-Ineligible Trading Desks
Aggregation of Capital Requirement
14- Simplified Standardised Approach
Risk-Weighted Assets and Capital Requirements
Interest Rate Risk
Equity Risk
Foreign Exchange Risk
Commodities Risk
Treatment of Options
15- Transitional Arrangements for Profit and Loss (P&L) Attribution (PLA)
16- Guidance on Use of the Internal Models Approach
Trading Desk-Level Backtesting
Bank-Wide Backtesting
Examples of the Application of the Principles for Risk Factor Modellability
17- SAMA Reporting Requirements
18- Implementation Timeline
Minimum Capital Requirements for Operational Risk
1. Introduction
2. Scope of Application
3. Definitions
4. Implementation Timeline
5. SAMA Reporting Requirements
6. Disclosure
7. Policy Requirements
7.1 The Standardized Approach
7.2 The Business Indicator
7.3 The Internal Loss Multiplier
7.4 Minimum Standards for the Use of Loss Data Under the Standardized Approach
8. General Criteria on Loss Data Identification, Collection and Treatment
9. Specific Criteria on Loss Data Identification, Collection and Treatment
9.1 Building of the Standardized Approach Loss Data Set
9.2 Gross Loss, Net Loss, and Recovery Definitions
10. Exclusion of Losses from the Loss Component
11. Exclusions of Divested Activities from the Business Indicator
12. Inclusion of Losses and BI Items Related to Mergers and Acquisitions
13. Application of the Standardized Approach Within a Group
Annexure 1: Definition of Business Indicator Components
Annexure 2: Detailed Loss Event Type Classification
Minimum Capital Requirements for Counterparty Credit Risk (CCR) and Credit Valuation Adjustment (CVA)
1. Introduction
2. Scope of Application
3. Definitions
4. Implementation Timeline and SAMA Reporting Requirements
5. Counterparty Credit Risk Overview
Counterparty Credit Risk Explanation
Scope of Counterparty Credit Risk Charge
Methods to Calculate Counterparty Credit Risk Exposure
Methods to Calculate CCR Risk-Weighted Assets
Exemptions
Minimum Haircut Floors for Securities Financing Transactions (SFTs)
6. Standardized Approach to Counterparty Credit Risk
Overview and Scope
Replacement Cost and Net Independent Collateral Amount
Multiplier (Recognition of Excess Collateral and Negative Mark-to-Market)
7. Internal Models Method for Counterparty Credit Risk
Approval to Adopt an Internal Models Method to Estimate EAD
Exposure Amount or EAD Under the Internal Models Method
Maturity
Margin Agreements
8. Capital Requirements for Bank Exposures to Central Counterparties
Scope of Application
Central Counterparties
Exposures to Qualifying CCPs: Trade Exposures
Exposures to Non-Qualifying CCPs
9. Counterparty Credit Risk in the Trading Book
10. Minimum Haircut Floors for Securities Financing Transactions
Scope
Haircut Floors
11. Credit Valuation Adjustment (CVA) Framework
Credit Valuation Adjustment (CVA) Overview
Basic Approach for Credit Valuation Adjustment Risk
Standardized Approach for Credit Valuation Adjustment Risk
Regulatory CVA Calculations
Calculations
Application Guidance/ Illustrative Examples
12. The Application of the (SA-CCR) to Sample Portfolios
13. The Effect of Standard Margin Agreements on the Calculation of Replacement Cost with SA-CCR
Output Floor Requirements
1. Introduction
2. Scope of Application
3. Implementation Timeline
4. SAMA Reporting Requirements
5. Minimum Risk-Based Capital Requirements
Risk-Weighted Assets and Output Floor Requirements
RWA for Credit Risk
RWA for Market Risk
RWA for Operational Risk
Calculation of the Output Floor
Additional Requirements on Capital Adequacy for Shari’ah Compliant Banking
1. Introduction
2. Objective
3. Scope of Application
4. Definitions
5. Prudential Treatment (Credit Risk & Market Risk)
6. Equity Exposures
7. Effective Date
Leverage
Leverage Ratio Framework
1. Introduction
2. Scope of Application
3. Implementation Timeline
4. SAMA Reporting Requirements
5. Policy Requirements
6. Exposure Measure
7. Treatment of Exposure Measures Items
7.1 On-Balance Sheet Exposures
7.2 Derivative Exposures
7.3 Securities Financing Transaction Exposures
7.4 Off-Balance Sheet (OBS) Items
Large Exposures
Large Exposure (LEX) Rules for Banks
1. General Requirements
1.1. Introduction
1.2. Objectives of the Rules
1.3. Definitions
2. Scope and Level of Application
2.1. Level of Application
2.2. Scope of Counterparties
3. Governance and Risk Management
4. Maximum Exposure Limits
4.1. Exposure Limits
4.2. Measurement of Exposures and Capital Base
4.3. Breaches of Limits
5. Measurement of Exposures Values
5.1. General Measurement Principles
5.2. Eligible Credit Risk Mitigation (CRM) Techniques
5.3. Recognition of CRM Techniques in Reduction of Original Exposure
5.4. Recognition of Exposures to CRM Providers
5.5. Treatment of Specific Measurement Issues
5.6. Exposures Exempted from Exposure Limits
6. Additional Requirements
7. Regulatory Reporting
8. Implementation
9. Effective Date
Appendix-I
Appendix-II
Appendix-III
Appendix-IV
Appendix V
Appendix VI
Appendix VII
Appendix VIII
Appendix IX
Appendix X
Risk Management
Supervisory Review
ICAAP
SAMA'S Guideline Document on the Internal Capital Adequacy Assessment Plan (ICAAP)
I. Process of Constructing an ICAAP
1. Introduction and Overview
2. Objective
3. Major Building Blocs of the ICAAP
3.1 Bank's Role and Responsibility for the ICAAP
3.2 SAMA's Role and Responsibility in the ICAAP Process
3.3 ICAAP as a Part of Pillar 2
4. Major Challenges in Building an ICAAP
5. The ICAAP Process
5.1 Board Responsibility in the ICAAP Process
5.2 Strategic and Capital Planning in the ICAAP Process
5.3 Documentation and Corporate Governance in the ICAAP Process
5.4 Frequency of ICAAP Review
5.5 Risk Based and Comprehensive
5.6 Models and Stress Testing
5.7 Reasonable Results
II. Reporting Format and Contents
1. Overview of the Reporting Format and Contents
2. Executive Summary
3. Objective of an ICAAP
4. Summary of Bank's Strategies Including its Current and Projected Financial and Capital Positions
5. Capital Adequacy and ICAAP
6. Approach and Methodology
7. Details on Models Employed
8. Stress and Scenario Tests Applied
9. Capital Transferability Between Legal Entities
10. Aggregation and Diversification
11. Challenge and Adoption of the ICAAP
12. Use of the ICAAP within the Bank
13. Future Refinements of ICAAP
Attachment 1 Details on Stress Testing
Enhancements to the ICAAP Document
ILAAP
Guidelines on the Internal Liquidity Adequacy Assessment Plan (ILAAP)
A. Introduction
B. ILAAP Construction
1. General Definition of the ILAAP
2. Objectives of the ILAAP
3. Scope and Proportionality
4. Major Building Blocks of the ILAAP
4.1 Banks’ Roles and Responsibilities for the ILAAP
4.2 ILAAP as Part of Pillar 2
5. The ILAAP Process
5.1 ILAAP Governance
5.2 Strategic and Liquidity Planning
5.3 Documentation
5.4 Comprehensive Risk Quantification
5.5 Stress-Testing
5.6 Review and Independent Validations
5.7 ILAAP Reporting to SAMA
C. Reporting Format and Content
1. Background
2. Executive Summary
3. Objectives of an ILAAP
4. Governance and Risk Management
5. Summary of Bank's Strategies
6. Liquidity Adequacy and ILAAP
6.1 Liquidity Risk Appetite
6.2 Disclosure of Liquidity Requirements
6.3 Funding Strategy
6.4 Risks Covered and Assessed in the ILAAP
6.5 Intraday Liquidity Risk
7. Approach and Methodology
7.1 Current Methodology
7.2 Future Approach and Methodology
7.3 Internal Models: Pillar 1 and ILAAP Comparisons
8. Details on Models Employed
9. Liquidity Specific Stress-Testing
10. Liquidity Transferability Between Legal Entities
11. Aggregation and Diversification
12. Challenge and Adoption of the ILAAP
13. Use of the ILAAP within the Bank
14. Future Refinements of ILAAP
Annexure (1): Stress-Testing and Contingency Funding Plan (CFP)
A. Stress-Testing
1. Stress-Testing Under Pillar 1
2. Stress-Testing Under Pillar 2
i. Example of First Liquidity Stress
ii. Example of Second Liquidity Stress
3. Other Aspects Related to Stress-Testing
B. Early Warning Indicators
C. Contingency Funding Plan (CFP)
IRRBB
Interest Rate Risk in the Banking Book (IRRBB)
Annexure 1: Regulatory Returns Based on Table A and Table B of the Basel Document
Annexure 2: Frequently Asked Questions (FAQs) and Answers including National Discretions
Stress Testing
Rules on Stress Testing
1. General Requirements
1.1. Introduction
1.2. Concept of Stress Testing
1.3. Objective of the Rules
1.4. Scope of Application
1.5. Effective Date
1.6. BCBS Stress Testing Principles
2. Conducting Stress Tests
2.1. Types of Stress Tests
2.2. Stress Testing a Mandatory Requirement
2.3. Stress Testing Parameters
2.4. Frequency of Stress Tests
3. Role of Board and Management
3.1. Board of Directors
3.2. Senior Management
4. Stress Testing Framework
4.1. Approach to Stress Testing
4.2. Stress Testing Process
4.3. Designing Stress Tests
4.4. Other Requirements
5. Methodologies and Techniques
5.1. Sensitivity Analysis
5.2. Scenario Analysis
5.3. Financial Models
5.4. Reverse Stress Testing
6. Selection of Scenarios
6.1. Identification of Risk Factors
6.2. Levels of Shocks
6.3. Magnitude of Shocks
6.4. Scenario Assumptions
6.5. Development of Scenarios
7. Risk Coverage and Scenarios
7.1. Credit Risk
7.2. Market Risk
7.2.1. Interest Rate Risk
7.2.2. Foreign Exchange Risk
7.2.3. Equity Price Risk
7.2.4. Commodity Price Risk
7.3. Liquidity Risk
7.4. Operational Risk
7.5. Other Risks
8. Compilation and Communication of Results
9. Remedial Actions
10. Regulatory Reporting
11. Top-Down or Macro Stress Testing
12. Implementation and Monitoring
Annexure-I
I. Stress testing Framework
II. Stress Testing Methodologies
III. Scenarios and Assumptions
IV. Risk Factors
V. Stress Testing Results
VI. Communication of Results
VII. Remedial Actions
Rules on Stress Testing-Frequently Asked Questions(FAQs)
Credit Risk Management
Prudential Treatment of Problem Assets
Rules on Management of Problem Loans
1. General Requirements
1.1 Introduction
1.2 Objective of the Rules
1.3 Scope of Implementation
1.4 Definitions
2. Problem Loan Prevention and Identification
2.1 Early Warning Signals
3. Non-performing loans (NPL) Strategy
3.1 Developing the NPL Strategy
3.2 Implementing the NPL Strategy
4. Structuring the Workout Unit
4.1 Performance Management
5. Approaching Restructuring Cases
5.1 Viability of Restructuring
5.2 Code of Conduct
6. Workout Plan
6.1 Negotiating and Documenting Workout Plan
6.2 Monitoring the Workout Plan
7. Collateral
7.1 Governance
7.2 Types of Collateral and Guarantees
7.3 General Requirements for Collateral
7.4 Specific Requirements for Each Type of Collateral and Guarantees
7.5 Valuation Frequency
7.6 Specific Requirements for Valuers
8. Regulatory Reporting Requirements
9. Effective Date
Guidelines on Management of Problem Loans
1. Introduction
1.1 Purpose of Document
1.2 Scope of Implementation
2. Problem Loan Prevention & Identification
2.1 Early Warning Signals as a Tool for Preventing NPLs
2.2 Scope of EWS Process
2.3 Stages of EWS Process
1. Identification:
2. Corrective Action:
3. Monitoring:
2.4 EWS Structure and Institutional Arrangements
3. Non-performing Loans (NPLs) Strategy
3.1 Developing the NPL Strategy
1. Assessment
2. Design
3.2 Implementing the NPL Strategy
4. Structuring the Workout Unit
4.1 Staffing the Workout Unit
4.2 Incorporating Legal and Support Functions Into Workout Unit
4.3 Performance Management
4.4 Developing a Written Policy Manual
5. Workout Plan
5.1 Preparing for the Workout Process
5.1.1 Gathering of Information About the Borrower
5.1.2 Identifying Non-cooperative Borrowers:
5.1.3 Determining the Bank’s Legal Rights and Remedies
5.1.4 Ensuring Collateral’s Validity
5.1.5 Financial Viability Analysis
5.1.6 Business Viability Analysis
5.2 Identifying the Workout Options
5.2.1 Purpose of Workout
5.2.2 Workout Options
5.2.3 Short Term Restructuring Measures:
5.2.4 Long Term/Permanent Restructuring
5.2.5 Additional Measures
5.2.6 Utilizing New Information
5.3 Negotiating and Documenting Workout Plan
5.3.1 Developing the Negotiating Strategy
5.3.2 Drafting the Restructuring Agreement
5.4 Monitoring the Restructuring Plan
5.4.1 Monitoring Arrangements for Restructured Loans
5.4.2 When Restructuring Fails
Appendix 1: Samples of Early Warning Signals
Appendix 2: Loan Life Coverage Ratio
Appendix 3: Restructuring Principles
Appendix 4: Details of Relevant Agreements
Appendix 5: Glossary of Technical Terms
Sound Practices for Banks’ Interactions with Highly Leveraged Institutions (HLI)-BCBS
Preface
I Introduction
II Banks’ Involvement with HLIs and their Overall Credit Risk Strategy
III Information Gathering, Due Diligence and Credit Analysis of HLIs
IV Exposure Measurement
V Limit Setting
VI Collateral, Early Termination and Other Contractual Provisions
VII Ongoing Monitoring of Positions Vis-À-Vis HLIs
Guidelines on the Regulatory Treatment of Banks' Exposures to Central Counterparties
1. Introduction
2. General terms
3. Scope
4. SAMA Requirements for Banks Who Wish to Apply for Clearing Membership
5. Regulatory Treatment of a Bank's and its clients' Exposures to CCPs
6. Additional Requirements
Rules on Credit Risk Management
1. General Requirements
1.1. Overview
1.2. Objective of the Rules
1.3. Scope of Application
1.4. Effective Date
2. Board and Senior Management’s Oversight
2.1. Responsibilities of the Board Of Directors
2.2. Responsibilities of the Senior Management
3. Credit Policy and Procedures
4. Organizational Structure
4.1. Credit Risk Management Department or a Unit
4.2. Credit Risk Management Committee
5. Systems and Procedures
5.1. Credit Origination
5.2. Limit Setting
5.3. Delegation of Authority
5.4. Credit Administration
5.5. Credit Risk Measurement
5.6. Credit Risk Monitoring
5.7. Independent Credit Risk Review
5.8. Managing Problem Credits
6. Stress Testing of Credit Risk
7. Management Information System
8. Internal Controls System
loan Classification, Provisioning and Credit Review
Section I. Loan Classification
1.1 Introduction
1.2 Scope
1.3 Objectives
1.4 Assessment and Classification of Individual Loans
1.5 Split Classifications
1.6 Assessing Classification and Impairment of a Group of Loans
1.7 Recognition of Income
Section II Minimum Provisioning Requirements
2.1 General Provisions
2.2 Impaired Loans
2.3 Historical Data
2.4 Specific Provisions
2.5 Treatment of Differences between Supervisory and Accounting Provisions
Section III. Other Matters
3.1. Rescheduled Loans
3.2. Overdrafts
3.3. Collateral
3.4. The Basel Capital Accord and Provisioning
Section IV. Independent Credit Review System
4.1. Introduction
4.2. Objectives
4.3. Elements of an Independent Credit Review System
4.4. Qualifications of Credit Review Personnel
4.5. Independence of Credit Review Personnel
4.6 Frequency of Reviews
4.7. Scope of Reviews
4.8. Depth of the Reviews
4.9. Review of Finding and Follow-Up
4.10. Workpaper and Report Distribution
Annex 1 SAMA Prudential Return Classification of Loans For the Quarter Ending
Annex 2 SAMA Prudential Return Supervisory Loan Provisioning For the Quarter Ending
Annex 3 SAMA Prudential Return List of Individually Assessed Loans Where Exceptions Made to the 90, 180, 360 Day Rule for Classification For the Quarter Ending
Annex 4 Guidance Notes for Prudential Returns For Loan Classification and Provisioning
Liquidity Risk Management
Principles for Sound Liquidity Risk Management and Supervision
Liquidity Coverage Ratio (LCR)
SAMA’s General Guidance Concerning Amended LCR
Attachment
SAMA’s Specific Guidance to Complete Prudential Returns Concerning Amended LCR
Package of Prudential Return Concerning Amended LCR
SAMA's Comments Concerning Amended LCR - FAQs
National Discretion Items Concerning Amended LCR
Loans to Deposits Ratio Guidelines
1. Introduction
2. Implementation Timeline
3. Reporting Requirements
4. General Requirements
5. Weighted Denominator Calculation
Guidance Document Concerning Basel III: The Net Stable Funding Ratio (NSFR) - Based on BCBS Document of October 2014
1. Overview
2. Frequency of Calculation and Reporting
3. Scope of Application
4. Minimum Requirements and Other Guidance
5. General Guidance
A. Definition of Available Stable Funding
B. Definition of Required Stable Funding for Assets and Off-Balance Sheet Exposures
6. Specific Guidance - Liabilities and Capital
7. Specific Guidance Notes – Assets
8. Interdependent Assets and Liabilities
9. Off-Balance Sheet Exposures
Net Stable Funding Ratio Prudential Returns
Prudential Returns - 1 Summary of Liability Categories and Associated ASF Factors
Prudential Returns - 2 Summary of Assets Categories and Associated ASF Factors
Prudential Returns - 3 Summary of Off-Balance Sheet Categories and Associated RSF Factors
Prudential Template – 4
Framework on Monitoring Tools for Intraday Liquidity Management
Operational Risk Management
The Management of Operational Risk Through Appropriate Insurance Schemes
1. Overview on Operational Risk
2. Elements of Operational Risk
2.1 Criminal Risk
2.1.1 Fraud
2.1.2 Forgery
2.1.3 Counterfeit Currency
2.1.4 Robbery and Burglary
2.1.5 Electronic Crime
2.1.6 Retail Electronic Banking
2.2. Professional Risk
2.2.1 Professional Errors and Ommissions
2.2.2 Professional liability risk
2.2.3 Contingent Client - Related Liability Risks
2.3 Other Risks
2.3.1 Statutory and Regulatory Liability
2.3.2 Political Risks
3. Management of Operational Risk Through Insurance Schemes
3.1 Self Insurance
3.1.1 Through Contracts
3.1.2 Unfunded Retention
3.1.3 Funded Retention
3.1.4 Setting up own Insurance Companies
3.2 Regular Insurance
3.2.1 Relations with the Market
3.2.2 Type of Coverage
3.2.3 Deductibles
3.2.4 Managing Losses
3.2.5 Premium levels
3.2.6 Claims
3.3. Other Insurance Alternatives
3.3.1 Risk Retention Groups. Group Captives,. and Risk Sharing Pools
3.3.2 Agency Captives
3.3.3 Rent-a-Captive
3.4 Finite Risk Insurance - A Combined Approach
3.4.1 Loss Severity and Frequency
3.4.2. Multi-Year Duration
3.4.3 Profit Sharing
3.4.4 Disadvantages
4. Risk Management Evaluation Questionnaire
Management Oversight
Risk Assessment
Operational Risk Reduction and Control
Insurance Policies
5. Glossary of Terms
Risk Management for Shariah Compliant Banking
Risk Management Framework for Shari’ah Compliant Banking
1. Introduction
2. Definitions
3. Scope and Level, of Application
4. General Principle
5. Market Risk
6. Operational Risk
7. Effective Date
Disclosure and Reporting Requirements
Pillar 3 Disclosure Requirements Framework
Glossary
1. Introduction
2. Scope of Application
3. Implementation Dates
4. Guiding Principles of Banks' Pillar 3 Disclosures
5. Assurance of Pillar 3 Data
6. Reporting Location
7. Presentation of the Disclosure Requirements
8. Frequency and Timing of Disclosures
9. Retrospective Disclosures, Disclosure of Transitional Metrics and Reporting Periods
10. Proprietary and Confidential Information
11. Qualitative Narrative to Accompany the Disclosure Requirements
12. Overview of Risk Management, Key Prudential Metrics and RWA
13. Comparison of Modelled and Standardised RWA
14. Composition of Capital and TLAC
15. Capital Distribution Constraints
16. Links Between Financial Statements and Regulatory Exposures
17- Asset Encumbrance
18. Remuneration
19. Credit Risk
20. Counterparty Credit Risk
21. Securitisation
22. Market Risk
23. Credit Valuation Adjustment Risk
24. Operational Risk
25. Interest Rate Risk in the Banking Book
26. Macroprudential Supervisory Measures
27. Leverage Ratio
28. Liquidity
29. Worked Examples
30. Annexure 1: Frequently Asked Questions (FAQ)
31. Annexure 2: Frequency and Timing of Disclosures
Trade Repository Reporting and Risk Mitigation Requirements for Over-the-Counter (OTC) Derivatives Contracts
1. Introduction
2. Section A
2.1 Trade Reporting Requirements for Over-the-Counter (OTC) Derivatives Contracts
2.1.1 Application
2.1.2 Scope of Reporting
2.1.3 Manner of Reporting
2.1.4 Timing of Reporting
2.1.5 Reporting Error Amendments
2.1.6 Keeping of Records
2.1.7 Technical Support
3. Section B
3.1 Risk Mitigation Requirements for Non-Centrally Cleared Over-the-Counter (OTC) Derivative Contracts
3.1.1 Trading Relationship Documentation
3.1.2 Trade Confirmation
3.1.3 Valuation
3.1.4 Portfolio Reconciliation
3.1.5 Portfolio Compression
3.1.6 Dispute Resolution
3.1.7 Governance
Appendix A
Appendix B
Appendix C
Basel III: The Liquidity Coverage Ratio and Liquidity Risk Monitoring Tools - BCBS
List of Abbreviations
Introduction
Part 1: The Liquidity Coverage Ratio
I. Objective of the LCR and Use of HQLA
II. Definition of the LCR
A. Stock of HQLA
1. Characteristics of HQLA
(i) Fundamental Characteristics
(ii) Market-Related Characteristics
2. Operational Requirements
3. Diversification of the Stock of HQLA
4. Definition of HQLA
(i) Level 1 Assets
(ii) Level 2 Assets
(iii) Level 2B Assets
(iv) Treatment for Jurisdictions with Insufficient HQLA
(a) Assessment of Eligibility for Alternative Liquidity Approaches (ALA)
(b) Potential Options for Alternative Treatment
(c) Maximum Level of Usage of Options for Alternative Treatment
(d) Supervisory Obligations and Requirements
(v) Treatment for Shari’ah Compliant Banks
B. Total Net Cash Outflows
1. Cash Outflows
(i) Retail Deposit Run-Off
(a) Stable Deposits (Run-Off Rate = 3% and Higher)
(b) Less Stable Deposits (Run-Off Rates = 10% and Higher)
(ii) Unsecured Wholesale Funding Run-Off
(a) Unsecured Wholesale Funding Provided by Small Business Customers: 5%, 10% and Higher
(b) Operational Deposits Generated by Clearing, Custody and Cash Management Activities: 25%
(c) Treatment of Deposits in Institutional Networks of Cooperative Banks: 25% or 100%
(d) Unsecured Wholesale Funding Provided by Non-Financial Corporates and Sovereigns, Central Banks, Multilateral Development Banks, and PSEs: 20% or 40%
(e) Unsecured Wholesale Funding Provided by Other Legal Entity Customers: 100%
(iii) Secured Funding Run-Off
(iv) Additional Requirements
2. Cash Inflows
(i) Secured Lending, Including Reverse Repos and Securities Borrowing
(ii) Committed Facilities
(iii) Other Inflows by Counterparty
(a) Retail and Small Business Customer Inflows
(b) Other Wholesale Inflows
(iv) Other Cash Inflows
III. Application Issues for the LCR
A. Frequency of Calculation and Reporting
B. Scope of Application
1. Differences in Home / Host Liquidity Requirements
2. Treatment of Liquidity Transfer Restrictions
C. Currencies
Part 2: Monitoring Tools
I. Contractual Maturity Mismatch
A. Objective
B. Definition and Practical Application of the Metric
1. Contractual Cashflow Assumptions
C. Utilisation of the Metric
II. Concentration of Funding
A. Objective
B. Definition and Practical Application of the Metric
1. Calculation of the Metric
(i) Significant Counterparties
(ii) Significant Instruments / Products
(iii) Significant Currencies
(iv) Time Buckets
C. Utilisation of the Metric
III. Available Unencumbered Assets
A. Objective
B. Definition and Practical Application of the Metric
C. Utilisation of the Metric
IV. LCR by Significant Currency
A. Objective
B. Definition and Practical Application of the Metric
C. Utilisation of the Metric
V Market-Related Monitoring Tools
A. Objective
B. Definition and Practical Application of the Metric
1. Market-Wide Information
2. Information on the Financial Sector
3. Bank-Specific Information
C. Utilisation of the Metric/Data
Annex 1: Calculation of the Cap on Level 2 Assets with Regard to Short-Term Securities Financing Transactions
Annex 2: Principles for Assessing Eligibility for Alternative Liquidity Approaches (ALA)
Annex 3: Guidance on Standards Governing Banks’ Usage of the Options for Alternative Liquidity Approaches (ALA) Under LCR
1. General Rules
II. Specific Standards for Option 2
III. Specific Standards for Option 3
Annex 4: Illustrative Summary of the LCR
Interest Rates on Assets and Liabilities Reporting Guidelines
General
Scope and Submission
Reporting Guidance
Reporting Categories
A. Assets: Accrued Rates Receivable.
1. Loans to Governments and Quasi Government
2. Loans to Financial Institutions (Excluding Banks)
3. Loans to Corporates
4. Retail Loans
5. Loans to Banks
6. Investments
7. Placements with SAMA
B. Liabilities: Accrued Rates Payable.
8. By Product Type
9. By Counterparties
10. Margin Deposits
11. Bonds and Debt Securities
12. Deposits from Banks
Annexure - 1: Example of Calculating Weighted Average Rates
Annexure - 2: Validation Table
Annexure - 3: Examples of Governments and Quasi Government and Public Non-Financial Corporates
Macroprudential Policy
Countercyclical Capital Buffer (CCyB) in Saudi Arabia
A Framework for Dealing with Domestic Systemically Important Banks in Saudi Arabia
I. Introduction
II. The Assessment Methodology
III. The Scoring and Bucketing
IV. Higher Loss Absorbency (HLA)
V. Buckets and HLA Requirements
Domestic Systemically Important Banks (D-SIBs)
Statutory Deposit Recognition in Liquidity Reserves Ratio
Foreign Banks Branches
Foreign Bank Branch Instructions
1. SAMA Approach to Foreign Banks Branches (FBB) Regulation
1.1. Significant Retail Activities
1.2 Wholesale Activities
2. Corporate Governance and Risk Management
2.1. Introduction
2.2. General Requirements
2.3. Requirements in Relation to the Senior Management and their Responsibilities
2.4. Senior Management Function (SMF) and Responsibilities
2.5. Segregation of Functions
2.6. Mechanisms and Procedures
2.7. Business Continuity Management (BCM) & Disaster Recovery Planning (DRP)
2.8. Regular Monitoring
2.9. Compliance and Internal Audit Functions
2.9.1. Compliance & Anti Money Laundering and Combating Terrorism Financing (AML/CTF)
2.9.2. Internal Audit Function (IAF)
2.10. Risk Management and Control
2.11. Branch Head of Risk Management
2.12. Reporting Lines of FBB’s Head of Risk Management
2.13. Branch Risk Oversight Team
2.14. Outsourcing
2.15. Record Keeping and Retention Requirements
2.16. Foreign Bank Branch (FBB) Reporting Requirements
3. Funding Ratio (FR) Requirements
3.1. Introduction
3.2. Pre-Approved Assets for the Funding Ratio (FR)
3.3. Calculating the Funding Ratio (FR)
3.4. Reporting
4. Liquidity Requirements
4.1. Introduction
4.2. Liquidity Risk Governance - Senior Management Responsibilities
4.3. Liquidity Risk Management Framework
4.4. Management of Liquidity Risk
4.5. Funding Strategy
4.6. Contingency Funding Plan (CFP)
4.7. Liquidity Coverage Ratio (LCR)
4.8. SAMA Statutory Liquidity and Reserve Ratios
4.9. Net Stable Funding Ratio (NSFR)
4.10. Liquidity Risk Stress Testing
4.11. Local Operational Capacity (LOC)
5. Large Exposures
Attachment A
Attachment B
Attachment C
Attachment D
Business Activities and Financial Conduct
Banknotes, Currency, and Cash Movement
First: Introduction
Second: Definitions
Third: Policy Content
General Controls and Specifications for Security Inks, Money Bags and ATM Boxes
Regulations for the approval of specifications for service providers' cash bags and ATM boxes
Reporting and Awareness Controls on How to Handle Banknotes Marked with Security Inks
Controls for Receiving Seized Banknotes
Controls for Dealing with Unseized Banknotes
Controls for Examining and Replacing Banknotes Marked with Security Inks
Operational Cost Controls
Document Retention Controls
Fourth: References
Fifth: Adjusting the Document
Annexures
Annexure (1): Form for Requesting Compensation for Banknotes Marked with Security Inks
Annexure (2): Declaration of Banknotes to be Compensated
Annexure (3): Reporting and Seizure of Banknotes Marked with Security Inks
First: General Instructions
Second: Controls for Replicating Foreign Currency Legally Circulated within the Kingdom of Saudi Arabia
Third: Controls for Replicating Saudi Currency Legally Circulated within the Kingdom of Saudi Arabia
1. Introduction
1.1 Purpose of Document
1.2 Scope of Document
1.3 Audience of Document
2. Overview
3. New ATM Screen Workflows
3.1 Cash Withdrawal Transaction Stream
3.2 Non-Cash Transactions Stream
4. Appendix
4.1 Workflows for Cash Withdrawal Transactions Stream
4.1.1 Workflow for Cash Withdrawal (without Receipt)
4.1.2 Workflow for Cash Withdrawal with Receipt
4.2 Workflows for Non-Cash Transactions Stream
4.2.1 Workflow for Balance Enquiry
4.2.2 Workflow for Mini Statement
4.2.3 Workflow for Cash Deposit
Instructions on Forms for Straps of Banknote Stacks of Sixth Edition
1. General Instructions
2. Requirements to be Included in the Cards
3. Colors of the Cards
4. Card Models
Attachments
Compliance with Employing Citizens and the Requirements for Contracting with Recruitment Service Companies
Contract with Cash Transfer Companies and Using High-Specification Security Bags
Prohibition on Dealing with Representatives of Private Security Companies and Cash Transport Companies that are non-Saudis
Recommendations for the Cash Transfer System
Mechanism for the Entry and Exit of Saudi and Foreign Currency via King Fahd Causeway
First: Mechanism for the Entry and Exit of Saudi Currency through King Fahd Causeway Customs
Second: Mechanism for the Entry and Exit of Foreign Currency through King Fahd Causeway
Third: Regulations for the Entry of Gulf Cash Transport Vehicles into Saudi Arabia
Cash Transfers must be Coordinated with Security Authorities Well Enough in Advance
Internal Controls on ATMs and POSs
Criteria and Requirements for Operating a Cash Transportation Service
Follow-up circular on Instructions to Be Followed When Opening, Relocating or Closing Bank Branches, Instant Remittance Centers and ATMs, Whether Operational or Non-Operational
Operational Rules
Account Opening Rules
Chapter I. Definitions
Chapter II. Supervisory Rules and Controls
1. Electronic Record
1.1 Saudi Natural Persons
1.2 GCC Natural Persons
1.3 Non-Saudi Natural Persons
1.4 Juristic Persons
2. Requirements for Inspection Purposes
3. Freezing of Bank Accounts Upon Expiration of Identification Documents
3.1 Freezing of Bank Accounts
3.1.1 Saudi Natural Persons
3.1.2 Non-Saudi Natural Persons
3.1.3 Juristic Persons
3.2 General Instructions for Freezing of Bank Accounts
3.3 Freezing Exceptions
4. Updating Account Data
4.1 Updating the Customer’s ID
4.2 Updating Customer Information
5. Inoperative Accounts
5.1 Transactions Subject to this Rule
5.2 Durations, Periods and Requirements for Dealing with Inoperative Accounts
5.2.1 Active Accounts
5.2.2 Dormant Accounts
5.2.3 Unclaimed Accounts
5.2.4 Abandoned Accounts
5.3 General Requirements
5.4 Communication Policy and Procedures for Inoperative Account Holders
5.4.1 The Communication Policy and Procedures Shall Be Implemented in Accordance with the Customer Classification and Legal Nature, as a Minimum, as Follows
5.4.2 Methods of Contact
5.4.3 Bank Communication Unit
5.4.4 Stages and Steps of Implementing Communication Policy and Procedures for Inoperative Account Holders
5.5 Internal Audit Control and Reports
5.6 Annual Statistical Reports Required by SAMA
6. Application of KYC Principle and AML/CFT Requirements
7. Curators, Legal Agents, Custodians and Authorized Persons (Natural or Juristic)
8. On-Going Monitoring of Accounts and Transactions
9. Training as a Key Principle for these Rules
10. Disclosure of and Enforcement on Bank Accounts, Balances and Relationships
10.1 Disclosure of Bank Balances, Accounts and Relationships
10.1.1 Attachment of Bank Balances, Accounts and Relationships
10.1.2 Instructing Banks to Stop Dealing with Customers
10.1.3 Compulsory Deduction from Accounts
10.2 Freezing in the Event of Death, Bankruptcy or Loss of Legal Competence
10.2.1 Official Notice on Freezing by Reason of Death, Loss of Legal Competence, Starting Any Liquidation or Administrative Liquidation Procedures Under the Bankruptcy Law, or Going into Liquidation Under Companies Law
10.2.2 Request of Heirs, Guardians and Curators to Banks to Disclose Transactions and Account Balances of their Deceased or Incompetent Persons and the Like
10.2.2.1 Inquiring About and Operation of a Deceased’s Account
10.2.2.2 Inquiring About Incompetent Persons’ Accounts
11. Providing Services to Customers with Disabilities and Giving them Priority
Chapter III. Procedural Rules
100. General Instructions for Opening Bank Accounts
1. Customer ID
2. Documents Required to Open a Bank Account are as Follows
3. Rules for Remote Opening of Bank Accounts for Natural Persons
4. Rules for Remote Opening of Bank Accounts for Sole Proprietorships
5. Rules for Remote Opening of Bank Accounts for Resident Corporations
6. Rules for Remote Opening of Bank Accounts for Foreign Companies According to Foreign Investment Law
7. Account Information Card
8. Opening an Account without Making a Deposit
9. Blind and Illiterate Customer Service and Dealing
10. Foreign Currency Accounts
11. Multiple Bank Accounts
12. Presence of Customer
13. Visiting the Customers in Exceptional Cases
14. Transfer and Check Services
14.1 Outgoing Transfers and Sold Checks
14.2 Incoming Transfers and Purchased Checks
15. Time Period for Opening the Bank Accounts
200. Rules for Opening Accounts for Natural Persons
200.1 Natural Persons Residing in Saudi Arabia
200.1.1 Saudi Natural Persons
200.1.2 GCC Natural Persons
200.1.3 Expatriates in Saudi Arabia
200.1.4 Tribe Members: Displaced Tribes/Ar Rub' Al-Khali Tribes
200.1.5 The Beluchis and Turkistanians
200.1.6 Expatriate Stewards and Stewardesses of the National Airlines, Expatriate Ship Crews and the Like
200.1.7 Bank Accounts for Employees of Enterprises Wishing to Pay Employee Salaries Through Prepaid Electronic Records
200.1.8 Credit Cards for Non-Resident Foreigners Employed by Resident Saudi Companies
200.1.9 Opening Bank Accounts to Raise Blood Money to Be Paid for Reconciliation in Murder Cases
200.2 Natural Persons Outside Saudi Arabia
200.2.1 Saudi Citizens Residing Outside Saudi Arabia
200.2.2 GCC Nationals Not Residing in Saudi Arabia
200.2.3 Non-Saudi and Non-GCC Natural Persons Not Residing in Saudi Arabia
300. Rules for Opening Bank Accounts for Juristic Persons
300.1 Resident Juristic Persons (Including Embassies and Multilateral Organizations)
300.1.1 Licensed Businesses and Shops
300.1.1.1 Special-Purpose Entities
300.1.1.2 Foreign Schools
300.1.1.3 E-Commerce Businesses with No Official Premises
300.1.1.4 Freelance Job Permit Holder
300.1.2 Licensed Money Changers
300.1.3 Resident Companies
300.1.3.1 Joint-Stock and Simplified Joint-Stock Companies
300.1.3.2 Limited Liability Companies
300.1.3.3 General Partnerships
300.1.3.4 Limited Partnerships
300.1.3.5 GCC Commercial Non-Banking Companies Residing in Saudi Arabia
300.1.3.6 Rules for Opening Escrow Accounts for Real Estate Development Projects
300.1.3.7 Collection Accounts for Depositing and Retaining the Funds of Payment Companies’* Clients
300.1.3.8 Collection Accounts for Managing the Finance Value of Debt-Based Crowdfunding Companies
300.1.3.9 Companies in the Special Logistics Zone
300.1.4 Residents Investing Under Foreign Investment Law
300.1.4.1 Joint-Venture Entities Owned by a Saudi Investor and a Foreign Investor
300.1.4.2 Entities Wholly Owned by a Foreign Investor
300.1.5 Rules for Non-Profit Sector, Hajj and Umrah Entities, and Public Entities
300.1.5.1 Hajj, Umrah and Visiting the Prophet’s Mosque in Madinah
300.1.5.2 Private Associations
300.1.5.3 Private Foundations
300.1.5.4 Public Welfare Committees (e.g. Committees of Patients’ Friends, Committees Caring for People with Disabilities or Blind People, Committees of Academic Excellence Awards, Charitable Warehouses Licensed by Regional Governors, and the Like)
300.1.5.5 Bank Accounts for Collection of Shoppers' Donations of Remaining Halalas (Change) in Favor of Charities
300.1.5.6 Cooperative Associations and Funds
300.1.5.7 Homeowners’ Associations/Housing Societies Licensed by the Real Estate General Authority
300.1.5.8 Endowments and Bequests
300.1.5.9 Cultural, Sports and Social Clubs and Youth Hostels
300.1.5.10 Public Corporations and Public Sector Institutions
300.1.5.11 Chambers of Commerce and Industry
300.1.5.12 Building, Renovating or Expanding Small and Large Mosques
300.1.5.13 National Societies and Committees
300.1.5.14 Trial and Enforcement Courts
300.1.5.15 Property Conveyancing Processes
300.1.5.16 Civil Rights–Personal Debt Settlement Account
300.1.5.17 Scientific Societies
300.1.5.18 Professional Associations
300.1.6 Rules for Foreign Embassies, Consulates, Diplomats, Airlines, Multilateral Organizations, and their Employees
300.1.6.1 Embassies, Consulates, and their Educational Institutions and Employees
300.1.6.2 Resident Diplomats
300.1.6.3 Diplomats on Temporary Visit
300.1.6.4 Foreign Airlines and their Employees
300.1.6.5 Rules for International Multilateral Organizations
300.1.6.6 Bank Accounts of Relief Committees and Campaigns
300.1.6.7 Bank Accounts of Committees of Friendship and Foreign Official Relationships of Saudi Arabia
300.1.6.8 Economic and Technical Liaison Offices in Saudi Arabia
300.1.7 Bank Accounts for Liquidation and Financial Restructuring
300.2 Non Resident Juristic Persons
300.2.1 Non-Banking GCC Companies Not Residing in Saudi Arabia
300.2.1.1 Current Accounts and Deposits for Business and Credit Purposes
300.2.1.2 Bank Accounts of GCC Juristic Persons for the Purpose of Trading in Securities Listed in the Saudi Stock Exchange
300.2.2 Non-Resident, Non-Banking (Non-GCC) Companies and Businesses with No Contracts or Projects in Saudi Arabia
300.2.3 Non-Resident and Non-Banking Companies and Businesses with Contracts or Projects in Saudi Arabia
300.2.4 Non-Resident and Non-Banking Companies and Businesses Leasing Spaces in Deposit Areas in Saudi Arabia
300.2.5 Non-Resident Commercial Banks (Including GCC Banks)
300.2.6 International Investment Companies and Mutual Funds and Other Nonresident Financial Institutions (Including GCC Institutions)
300.2.7 Non-Resident Insurance Companies and Money Changers
300.2.8 Payment Card Companies Not Residing in Saudi Arabia and Not GCC Affiliated
400. Rules for Opening Bank Accounts for Resident and Non-Resident Foreign Investors Not Covered by the Foreign Investment Law
400.1 Rules for Opening Bank Accounts for the Purpose of Linking Investment Deposits Only or Linking Investment Deposits for Issuing Letters of Guarantee to Non-Resident Juristic Persons
400.2 Rules for Opening Intermediary Investment Accounts
400.3 Rules for Opening Bank Accounts for Juristic Persons (Licensed Companies, Institutions and Shops) Owned by Foreign Residents Permitted to Practice Business But Not Included in the Foreign Investment Law
400.4 Rules for Opening Bank Accounts for Foreign Financial Institutions Qualified to Invest in Securities Listed in the Saudi Stock Exchange
500. Rules for Opening Bank Accounts for Government Entities
500.1 Rules for Opening Bank Accounts for Ministries and Saudi Government Entities
500.1.1 Ministries and Government Entities Listed in Appendix (A) and the Like
500.1.2 Rules for Opening Bank Accounts for Government Entities to Receive Donations for their Own Account
500.1.2.1 Bank Accounts of Government Entities, Designated for Activities and Services Financed Through Sources Other Than the State Budget
500.1.3 Bank Accounts to Invest the Funds of Persons Covered by the Law of the General Commission for the Guardianship of Trust Funds for Minors and their Counterparts (Wilayah)
500.2 Bank Accounts of Countries and Non-Saudi and Non-Resident Government Entities
500.2.1 GCC Countries and GCC Government and Quasi-Government Entities
500.2.2 Non-GCC Countries and Non-GCC, Non-Resident Government and Quasi-Government Entities, Except Hajj Missions
600. Clearance Bank Accounts
Chapter IV. General Rules for Operation of Bank Accounts
9. Rules for Deposits in Bank Accounts
9.1 Deposits Through Bank Tellers
9.2 Deposits Via Cash Acceptance Machines (CAM) and Automated Teller Machines (ATM)
9.2.1 Deposits Through ATMs, Using ATM Card and Personal Identification Number (PIN) Only
9.2.2 Deposits Through ATMs, Using Cash Deposit Card
10. Account Closure
Chapter V. Concluding Provisions
Chapter VI. Appendices
Appendix (A)
Appendix (B)
Appendix (C)
Rules Governing Bancassurance Activities
Article One
Article Two Scope of Application
Article Three Objective
Article Four Requirements for Practicing Bancassurance Activities
Article Five Bank Obligations
Article Six Company’s Obligations
Article Seven
Article Eight
Article Nine Rules of professional Conduct:
Article Ten Banks Dealing with Clients Requirements
Article Eleven Agreement Termination Procedures
Article Twelve Control and Inspection
Article Thirteen Consequences of Non-Compliance
Profit Sharing Investment Accounts Rules
1. Introduction
2. Objectives
3. Scope of Application
4. Definitions
5. Operation of Profit Sharing Investment Accounts
6. Responsibilities of the Board of Directors
7. Responsibilities of the Senior Management
8. Prudential Requirements
9. Product Awareness
10. Product Governance
10.1 Terms & Conditions
10.2 Contract Form
11. Disclosure Requirements
11.1 Financial Statements
11.2 IAH Disclosures
12. Separation of PSIA Types
13. Effective Date
Regulation of Agent Banking in the Kingdom of Saudi Arabia
Section One: Definitions and General Provisions
Article 1: Definitions
Article 2: Purpose and Scope
Article 3: Responsibility
Section Two: Applying for Agent Banking
Article 4: Application Requirements
Article 5: Application to Contract with an Agent for Agent Banking
Article 6: Not Commencing Agent Banking Activity
Section Three: Agent Banking Contract
Article 7: Key Requirements
Article 8: Contract
Article 9: Agent Eligibility
Article 10: Renewal of Agent Banking Contract
Article 11: Termination of Agent Banking Contract
Article 12: Record Retention
Article 13: Fit & Proper Assessment
Article 14: Agent Due Diligence
Article 15: Customer Due Diligence
Section Four: Agent Banking Operations
Article 16: Obligations and Responsibilities of the Bank
Article 17: Cash Services
Article 18: Training of Banking Agents’ Employees
Article 19: Permissible Activities
Article 20: Prohibited Activities
Article 21: Relocation, Transfer and Closure of Agent Premises
Article 22: Settlement of Transactions
Article 23: Information Technology (IT) and Operational Requirements
Section Five: Consumer Protection
Article 24: Consumer Protection Requirements
Section Six: Supervision of Banking Agents
Article 25: Key Inspection and Supervision Procedures
Article 26: Off-site Inspection
Article 27: On-Site Inspection
Article 28: Random Inspection
Section Seven: Agent Registration
Article 29: Agent Registry
Article 30: Annual Reporting
Article 31: Timely and Accurate Reporting
Section Nine: Violations
Article 32: Measures and Penalties
Section Ten: Enforcement
Article 33: Enforcement
Guide to Rules Governing Banks’ Remittance Centers
1. Introduction
1.1: Scope
1.2: Purpose
2. Relevant Laws, Rules and Regulations
3. Definitions
4. Working Hours of Banks’ Remittance Centers*
5. General Provisions
6. Disclosure and Transparency
7. Complaints
8. Services Provided within Remittance Centers
9. Customer Acceptance Policies and Procedures
9.1: Membership
9.2: Membership Opening Conditions
9.3: Updating Details
9.4: General Instructions Regarding Customers
9.5: ‘Know Your Customer’ Principle
9.6: Customer Due Diligence (CDD) Measures
10. Outbound and Inbound Domestic and International Remittances
11. Money Transfer Services Providers
12. Security Safety Laws and Systems
13. Employment
Regulation on Branch Network
1. Preamble
2. Definitions
3. Objectives of the Regulation
4. Scope of Application
5. Branch Network Policy
6. Licensing of Branches
7. Opening of Branches
8. Closure of Branches
9. Communication to Customers
10. Submission of Returns
Annexure-I
Annexure-II
Annexure-III
Governing Rules for Electronic Issuance and Authenticity Verification of Banking Documents
Chapter One: Introduction and Definitions
First/Introduction
Second/Definitions
Chapter Two: Issuance and Verification
First/Issuance of Banking Documents
Second/Electronic Verification of the Accuracy of Banking Documents
Chapter Three: Banking Documents
Chapter Four: Final Provisions
Saudi Arabian Benchmark (SAIBOR/SAIBID)
1. Introduction
2. Definition of SAIBOR/SAIBID
3. Bank Calculation Methodology
4. Minimum Eligible Transaction Size
5. Transaction Tenor Criteria
6. Transaction Window and Publication
7. Final Calculations and Averaging
8. Contributor Banks Standards for Submission and Data Keeping
9. Reporting to SAMA
Annex 1: Eligibility Detailed Criteria
SAMA SAIBOR/SAIBID Monthly Return
Charging Policy for Cross Currency Payments Using "AFAQ" Service
1. Definitions
2. Introduction
2.1 General
2.2 Purpose
2.3 Statutory Authority
2.4 Scope
2.5 Amendment
2.6 Compliance
3. Service & Transaction Fees
3.1 Participant Membership Fee
3.2 Discounted Participant Membership Fee
3.3 Transaction Fees
3.4 Discounted Transaction Fees
4. Exceptional and Penalty Fees
4.1 Cut-off time extension
4.2 Late Return of Payments
5. Payment of Invoices
6. FX Margin
7. Fees charged to Customers
8. Other Exceptional and Penalty fees
Appendix 1
Appendix 2
Initial Public Offering (IPO) Rules for Receiving and Lending Banks
1. Introduction
2. Definitions
3. Objective
4. Scope
5. Governance
6. Risk Management and Operational Capabilities
6.1 Lending Bank
6.1.1 Lending Limits
6.2 Receiving Bank
6.2.1 Operational Capabilities
6.2.2 Liquidity Requirements
7. Cybersecurity
8. Subscription Surplus Refund
9. Reporting
10. Implementation and Effective Date
Instructions on Periods of Issuing the Clearance Letter and Executing Requests for Account Transfer and Debt Transfer
Chapter One: Definitions and General Provisions
1. Definitions
2. General Provisions
Chapter Two: Timeframes for Processing Customer Requests
3. Clearance Letter
4. Account Transfer
5. Debt Transfer
Chapter Three: Final Provisions
Operating Rules for Cross Currency Payments using AFAQ Service
1. Definitions
2. Introduction
2.1. General
2.2. Purpose
2.3. Statutory Authority
2.4. Scope
2.5. Amendment
2.6. Compliance
2.7. Charges
2.8. Controlled Documents
3. Direct Participants
3.1. Direct Participants Admission
3.2. Suspension or Termination of Direct Participants
3.3. Withdrawal of Direct Participants
3.4. Obligations on Cessation
3.5. Notice
4. Systems & Operations
4.1. Overview of AFAQ Service's Architecture
4.1.1 Sending Domestic RTGS
4.1.2 RPG
4.1.3 Sending RPG
4.1.4 Receiving RPG
4.1.5 AFAQ Service CC
4.1.6 Receiving Domestic RTGS
4.1.7 Country Specific Model (CSM)
4.2. Service's Architecture
4.3. SAMA's Systems
4.4. Direct Participants' Systems
4.5. Certification
4.6. Monitoring
4.7. Responsibility for Liquidity
4.8. Information
4.9. Enhancements to Systems
4.10. Service Levels
4.11. Reporting
4.12. Operating Procedures
4.13. Contingencies
4.14. Tests
4.15. Back-ups
4.16. Confidentiality
4.17. Security
4.18. Fraudulent Activities
4.19. Accounts at SAMA
5. Business Day Timetable and Calendar
5.1. Timetable
5.2. Business Days
5.3. Calendar
5.4. Cut-off
5.5. Limits on Transactions
5.6. Closures
5.7. Availability
6. FX Rates and Currency Conversion
7. Payment Messages
7.1. Eligible AFAQ Transactions
7.2. Qualified Payment Messages
7.3. Payments Processing
7.4. Completion of a Payment
7.5. Confirmation of Completion
7.6. Crediting Beneficiary's Account
7.7. Value to Correct Beneficiary
7.8. Returns by the Receiving Direct Participant
7.9 Return Payment Rules
7.10 Reasons for Return or Rejection
7.11 Payments to the UAE
7.12 IBAN
7.13 Finality Provisions
7.14 Cancellation
7.15 Anti-Money Laundering and Combating Terrorist Financing
8 Miscellaneous
8.1 Liabilities of SAMA
8.2 Force Majeure
8.3 Emergencies
8.4 Direct Participants Act as Principals Only
8.5 Assignments
8.6 Dispute Settlement
8.7 Severability
8.8 Governing Law
Appendix 1 - Controlled Documents
Appendix 2 - Return and Rejection Codes
Instructions for Banking Obligations and Transactions in Accordance with the Bankruptcy Law and Its Implementing Regulations
Chapter One: Definitions and General Provisions
1. Definitions
2. General Provisions
Chapter Two: Obligations of Banks
Chapter Three: Banking Transactions That May Be Required by the Trustee or Committee
4. Bank Accounts
5. Bank Account Statements for a Period of Ten Years
6. The Execution or Submission of the Transactions Outlined in Sections (4) and (5) Should not Exceed the Timeframes Specified in the Following Table
The requirements and Information Needed for Customers’ Bank Account Statements
Transaction Type and Criteria for Statement Details: Cash Deposit (Bank Branch). (1/1)
Transaction Type and Criteria for Statement Details
Instructions on the Working Hours of Bank Branches, Self-Service Centers, and Remittance Centers in Shopping Centers
First: Definitions
Second: General Provisions
Third: Instructions
Rules of Saudi Arabian Riyal Interbank Express Indirect Participation
1. Introduction
1.1 Background
1.2 Definitions
1.3 Scope
2. Criteria
2.1 Participant
2.2 Indirect Participant
2.3 Settlement Agent
3. Indirect Participant Registration
3.1 Application Letter
3.2 Appointment of Settlement Agent
3.3 Onboarding of Indirect Participant
3.4 Service Level Agreement
4. Risk Management
4.1 Material Dependencies
4.2 Prudential Requirements
5. Other Provisions
5.1 Reporting Requirements
5.2 End User Terms
Appendix 1 - Monthly Statistical Return
Part A: SAR Outgoing Instructions
Part B: SAR Incoming Instructions
Part C: Credit Lines and Collateral
Financial Sector Safety and Security Guidelines CCTV Specifications Summary
Security Surveillance Systems
CCTV System Installation Requirements
General CCTV Camera Specifications
Specifications for CCTV Cameras and NVR Server
CCTV Operational Deployment Requirements
CCTV Surveillance Specifications
1. General
2. Products
Execution
Maintenance
Bandwidth Requirements for Security Systems
Depositors Protection Fund(DPF) Rules
1. Definitions
2. General Provisions
3. Establishment of the DPF
4. Functions of the DPF
5. Resources of the DPF
6. Use of the DPF’s Resources
7. Protection of Deposits
8. Protection Limit
9. Determining the Size of Protected Deposits
10. Payment of Premium
11. Submission of Return
12. Responsibilities of Banks
13. Maintenance of Accounts
14. Miscellaneous Matters
Depositors Protection Fund (DPF): Frequently Asked Questions (FAQs)
Banking Products and Finance Activities
Responsible Lending Principles for Individual Customers
Relevant Laws and Instructions
Chapter I Definitions
Chapter II General Provisions
Chapter III Qualitative Principles of Responsible Lending
Chapter IV Quantitative Principles of Responsible Lending
Chapter V Publishing and Coming into Force
Regulations for Consumer Financing
Definitions
Article 1: Definitions
Section One Scope of Application
Article 2: Application of the Regulations
Article 3: Meaning of Consumer Financing and Amount of Financing
Section Two Financing Contracts and Guarantee Agreements
Article 4: Financing Contracts and Guarantee Agreements
Article 5: Necessary content of Financing Contracts or Guarantee Agreements
Article 6: Amendment of the Financing Contract
Article 7: Copy of Financing Contract and Guarantee Agreement for Borrower and Guarantor as applicable
Article 8: Annual Percentage Rate (APR)
Article 9: Fees and Charges
Article 10: Right of Termination or Withdrawal
Article 11: Early payments
Article 12: Balance Transfer
Article 13: Assignment of Rights
Article 14: Maximum Credit Limit and Maximum Term to Maturity
Section Three Obligations and Accountability
Article 15: General Requirements and Obligations of Creditors and Borrowers
Article 16: Non Performance of Financing Contract and Guarantee Agreements
Section Four Advertising
Article 17: Advertising Consumer Financing Products
Section Five Rules of Information Disclosure
Article 18: General disclosure
Article 19: Manner of Disclosure
Article 20: Timing of Initial Disclosure
Article 21: Initial Disclosure – Content
Section Six Dealing with Borrowers
Article 22: Rules for dealing with Borrowers
Section Seven Dispute Resolution
Article 23: Rules for Dispute Resolution
Annex 1 Calculation of the Annual Percentage Rate
Rules Governing Calculation of Annual Percentage Rate (APR)
Chapter I: General Provisions
Article 1: Definitions
Article 2: Scope of Implementation
Article 3: General Provisions
Chapter II: APR Calculator
Article 4: SAMA APR Calculator
Article 5: Implementation and Update of the APR Calculator
Chapter III: APR Calculation Requirements
Article 6: APR Calculation Method
Article 7: Cost of Finance
Article 8: Costs Excluded from APR Calculations
Article 9: General Requirements
Article 10: Specific Requirements for Credit Cards Products
Chapter IV: Concluding Provisions
Article 11
Article 12
New Banking Products and Services Regulation
1. Introduction
2. Objective
3. Scope of Application
4. Definitions
4.1 Product or Service
4.2 New Product or Service
4.3 Existing Product or Service
5. Board of Directors and Senior Management Responsibilities
5.1 Board of Directors (The Board)
5.2 Senior Management
6. Products and Services Policy Requirements
6.1 General Requirements
6.2 Considerations
6.3 Products and Services Risk Assessments
6.4 Products and Services Compliance
6.5 Products and Services Auditing
6.6 Product Development Function
6.7 Products and Services On-going Monitoring and Control
6.8 Documentations and Reporting Requirement
7. Notification and Non-Objection Requirements
7.1 Notification Requirements
7.2 Non-objection Requirements for Specified Products and Services
7.3 Offering of Financial Derivatives Products
7.4 Documentation Requirements
8. Effective Date
9. Annexure
Annexure (1): Checklist
Annexure (2): Application Form for New Banking Products or Services
Annexure (3): Statement of Compliance
Annexure (4): Consumer Protection Checklist
Annexure (5): Annual Report for Banking Products and services
Regulations of Issuance and Operating of Credit and Monthly Charge Cards
Preamble
Definitions
Section One Scope of Application
Application of the Regulations
Article 1
Article 2
Article 3
Article 4
Article 5
Section two Card Issuing
General Requirement
Article 6
Article 7
Article 8
Article 9
Article 10
Article 11
Article 12
Article 13
Article 14
Article 15
Article16
Article 17
Article 18
Replacement Cards
ARTICLE 19
ARTICLE 20
Supplementary cards
ARTICLE 21
ARTICLE 22
ARTICLE 23
Section Three Credit Limits
Article 24
Article 25
Article 26
Article 27
Article 28
Article 29
Article 30
Article 31
Section Four Advertising
Article 32
Article 33
Article 34
Article 35
Article 36
Article 37
Article 38
Section Five Information Disclosure
Disclosure statement
Article 39
Article 40
Article 41
Article 42
Article 43
General disclosures
Article 44
Article 45
Article 46
Article 47
Regular account statements
Article 48
Disclosure of fees, commissions and charges
Article 49
Article 50
Article 51
Section Six Cardholder Dealing
General
Article 52
Article 53
Article 54
Article 55
Article 56
Article 57
Article 58
Article 59
Article 60
Article 61
Article 62
Article 63
Article 64
Article 65
Article 66
Article 67
Article 68
Article 69
Article 70
Article 71
Article 72
Article 73
Section Seven Disputed Transactions
Account error/disputed transaction
Article 74
Article 75
Article 76
Article 77
Article 78
Article 79
Article 80
Article 81
Article 82
Article 83
Article 84
Section Eight Dispute Resolution
Article 85
Article 86
Article 87
Article 88
Article 89
Article 90
Article 91
Article 92
Article 93
ANNEX 1
ANNEX 2
ANNEX 3
General Rules for Savings Products in Banks
Chapter One: General Provisions
Article One: Definitions
Article Two: Purpose and Scope
Chapter Two: Provisions for Savings Products
Article Three: Design and Development of Savings Products
Article Four: Advertising and Disclosure of Savings Products
Article Five: Offering and Managing Savings Products
Article Six: Offering Savings Products to Non-Residents
Chapter Three: Final Provisions
Article Seven
Regulatory Rules for Prepaid Payment Services in the Kingdom of Saudi Arabia
Introduction
1. Definitions
1.1. Prepaid Payment Service Definition
1.1.1. Acceptance
2.1.1. Reloadability
1.2. Stakeholder Definition
1.2.1.The Issuing Programme Manager (Issuer)
1.2.2. The Acquirer
1.2.3.The Contracting Entity
1.2.4. The Primary Cardholder
1.2.5. Merchants
1.2.6. Merchant Account
1.2.7. Saudi Arabian Payment Network – SPAN
1.3. Prepaid Payment Services Products Segmentations
1.3.1. Retail payment products
1.3.2. Government Entities payment products
1.3.3. Juristic Persons Payment products
2. Rules and Guidelines Governing Prepaid Payment Services
2.1 General Prepaid Payment Service Issuing Rules
2-1-A Closed loop Prepaid Payment Services
2-1-B Restricted Loop Prepaid Payment Services
2-1-C Open Loop Prepaid Payment Services
2-1-D Outsourcing
2.1.1 All disclosures
2.1.2 Disclosure requirements
2.2 License to Issue and/or Acquire prepaid Payment Services
2.2.1 Banking license
2.2.2 Regulatory Rules
2.3 Know Your Customer Requirements
2.3.1 Full Verification
2.3.2 Card Payment Service Products that use a simpler form of KYC
2.4 Account Opening Requirements
2.4.1 Rules for Opening Prepaid Electronic Records where the Contracting Entity is an Individual
2.4.2 Rules for Opening Prepaid Electronic Records where the Contracting Entity a Juristic Person
2.4.3 Rules for Opening Prepaid Electronic Records where the Contracting Entity is a Government Agency
2.4.4 Rules for Opening Prepaid Electronic Records where the Contracting Entity is a Householder
2.4.5 Rules for Opening Prepaid Electronic Records that Use a simpler form of KYC
2.5 Anti-Money Laundering & Control of Terrorist Financing
2.5.1 Anti-money laundering regulations
2.5.2 Issuer compliance
2.5.3 Monitoring of payment service activity
2.5.4 Funds transfers
2.5.5 Face to face verification
2.5.6 SAMA Examination
2.6 Data Protection
2.7 Distance Selling of Reloadable Products
2.7.1Distance selling rules and guidelines
2.7.2 Provision of contracting entity (an individual or a juristic person or government entity) with contractual terms and conditions
2.7.3 Confirmation of contract receipt by the contracting entity (an individual or a juristic person or government entity)
2.7.4 Cooling off period
2.8 Consumer Protection
2.8.1 Provision of disclosures
2.8.2 Disclosures with or upon application
2.8.3 Government entities or juristic persons programmes
2.8.4 Written contracts
2.8.5 Contract signature
2.8.6 Contracting entity/Cardholder complaints
2.8.7 Communication language
2.8.8 Honouring primary cardholder payment instructions
2.8.9 Card fees
2.8.10 Card expirations
2.8.11 Unfair contract terms
2.9 Advertising Prepaid Payment Service Products
2.9.1 Definition of an advertisement
2.9.2 Minimum level of detail
2.9.3 Presentation of terms
2.10 Statementing
2.11 Cardholder Dispute Resolutions for Prepaid Services
2.11.1 Billing errors
2.11.2 Billing error notice
2.11.3 Handling of billing errors
2.12 Merchant Dispute Resolution for Prepaid Payment Services
2.13 Merchant Agreements for Closed Loop Prepaid Payment Services
2.13.1 Regulated financial institutions
2.13.2 Disclosure of charges
2.13.3 Changes in charges
2.13.4 Cancellation of agreement
2.13.5 Settlement period
2.13.6 Merchant’s liability for unauthorised use of prepaid payment services
2.13.7 Statementing
2.14 Non-compliance
2.15 Account Closure
Rules Governing Disposal of Finance Assets or Their Contractual Rights
Introduction
Chapter One Definitions
Chapter Two General Provisions
Chapter Three Requirements for Disposal of Finance Assets or Their Contractual Rights
Chapter Four Procedures for Disposal of Finance Assets or Their Contractual Rights
Chapter Five Effectiveness
Appendices
Instructions When Offering Real Estate Finance Products for Individuals
First: Introduction
A. Objective
B. Scope
Second: Instructions for Offering Real Estate Financing Products to Individuals
Third: Annexes
Annex A
Annex B
Instructions for Creditors on Dealing with Promissory Notes
Chapter One: Definitions and General Provisions
1. Definitions
2. General Provisions
Chapter Two: Instructions for Handling Promissory Notes by Financing Entities
Chapter Three: Final Provisions
Rules for Comprehensive Insurance of Motor Vehicles Financially Leased to Individuals
Article 1 Purpose
Article 2 Definitions
Chapter One: Provisions of the Relationship Between the Lessor and the Lessee in Comprehensive Insurance of Motor Vehicles Financially Leased to Individuals
Article 3
Article 4
Article 5
Article 6
Article 7
Article 8
Article 9
Article 10
Article 11
Chapter Two: The Unified Comprehensive Insurance Policy for Motor Vehicles Financially Leased to Individuals
Article 12
Article 13
Article 14
Article 15 General Provisions
Article 16 Coverage Exclusions
Article 17
Policy Schedule
Insurance Form
Regulations for Total Loss Settlement of Vehicle Leasing Contracts
First: Definitions
Second: Mechanism for Settling a Vehicle Finance Lease Contract in the Event of Total Loss
The Guidelines on Standing Orders for Financing Entity
First: Definitions and General Provisions
A. Definitions
B. Objective
C. Scope of Application
Second: Regulations for Standing Payment Order in Favor of a Financing Entity
A. Bank Obligations
B. Obligations of the Beneficiary Financing Entity
Annex
The Working Mechanism of Dealing with the Beneficiaries of First Home Regarding Tax Revenues
Responsibilities of the Citizen
Responsibilities of Financing Entities
Responsibilities of Sales and Development Entities Registered with the Zakat, Tax, and Customs Authority, whether individuals or companies:
Transfer of The Real Estate Financing Debts
Real Estate Murabaha Finance Buyout
Self-Build Product Instructions for Retail Mortgage Finance
Collecting Amounts Owed to Finance Entities for Previous Periods in Exchange for VAT on Real Estate Finance Contracts
Variable-Cost Real Estate Financing Products for Individuals
Digital Confirmation of Banking Products for Bank Customers
Regulations for Processing Financial Refunds for Bank Cards
Procedural Requirements for Mortgage Registration
Procedural Requirements for Mortgage Documentation and the Prepared Forms for That Purpose.
Form 1 (Property Owned by the Financing Company)
Form 2 (Property Owned by the Mortgagor)
Form 3 (Property Owned by a Third Party, Sold to the Company, Then Sold to the Client and Mortgaged)
Incident Documentation Form
Financial Market Activities
Banks Investment Rules
1. Introduction
2. Objectives
3. Scope of Application
4. Definitions
5. General Requirements
6. Governance
7. Risk Management and Monitoring
8. Approval Requirements and Controls
9. Implementation and Effective Date
Guidelines on Repurchase Agreements
Part A: Overview
Part B: Policy Requirements
Appendix A
Master Agreement for the Sale and Purchase of Securities
1. Applicability
2. Definitions
3. Initiation; Confirmation; Termination
4. Undertakings
5. Exercise of Undertakings
6. Margin Maintenance
7. Income Payments
8. Payment and Transfer
9. Contractual Currency
10. Substitution
11. Representations
12. Events of Default
13. Tax Event
14. Late Payment Amount
(a) Late Payment Amount
(b) Calculation of Late Payment Amount
(c) Payment of Late Payment Amount
15. Single Agreement
16. Notices and Other Communications
17. Entire Agreement; Severability
18. Non-assignability; Termination
19. Governing Law and Jurisdiction
20. No Waivers, etc.
21. Waiver of Immunity
22. No Interest Payable
23. Recording
ANNEX 1 Supplemental Terms or Conditions
ANNEX III Form Of Exercise Notice [Letterhead of the Exercising Party]
ANNEX II Form of Confirmation
Margin Requirements for Non-Centrally Cleared Derivatives
Introduction
Objectives
Key Principles and Requirements
Element 1: Scope of Coverage – Instruments Subject to the Requirements
Element 2: Scope of Coverage – Scope of Applicability
Element 3: Baseline Minimum Amounts and Methodologies for Initial and Variation Margin
Element 4: Eligible Collateral for Margin
Element 5: Treatment of Provided Initial Margin
Element 6: Treatment of Transactions with Affiliates
Element 7: Interaction of National Regimes in Cross-Border Transactions
Element 8: Phase-in of the Requirements
Reporting to SAMA
Appendix A
Appendix B
Primary Dealer in the Government Securities Market
1. Eligibility conditions for banks proposing to undertake PD business
2. General Guidelines and Applicability
3. Maintenance of Books, Accounts and Reporting
4. Capital Adequacy and Risk Management
5. Implementation and Effective Date
Consumer Protection
Regulations for Establishing Customer Care Departments in Banks
Introduction
Scope of Application
Definitions
Section One: Responsibilities, Policies, and Procedures of the Department
1. Establishment of the Department
2. Responsibilities of the Department
3. Policies and Procedures of the Department
4. Department Personnel and Their Qualifications
Section Two: Department Units and Their Responsibilities
First: Complaints Handling Unit
Second: Quality and Performance Analysis Unit
Third: Financial Awareness and Education Unit
Final Provisions
Debt Collection Regulations and Procedures for Individual Customers
Financial Consumer Protection Principles and Rules
Chapter One: General Provisions
Article 1: Definitions
Article 2: Objectives
Article 3: Scope of Application
Chapter Two: Communication Regulations with Consumers and Their Guarantors
Article 4: Communication Regulations with Consumers
Chapter Three: Collection Procedures
Article 5: Communication Mechanism with Consumers 
Article 6: Handling Objections
Chapter Four: Debt Collection Management Regulations
Article 7: Mechanism for Setting Deduction Dates from Consumers' Accounts
Article 8: Installment Deduction Regulations from Consumers' Accounts
Article 9: Managing Potential Default Cases
Article 10: Managing Default Cases
Article 11: Managing Cases of Total Disability or Death
Chapter Five: Final Provisions
Instructions for services provided to persons with disabilities in financial institutions
Code of Conduct and Work Ethics in Financial Institutions
Rules for Advertising Products and Services Provided by Financial Institutions
License Disclosure Instructions
A Guide for Calculating the Early Payment Amount
Disclosure of Interest Rates on Financing and Savings Products
1. Introduction
2. Scope of Application
3. Definitions
4. Disclosure requirements
5. Disclosure Tables for Retail Customers
6. Disclosure Tables for Micro and Small Enterprises
7. Implementation Date
Consumer Complaints
Regulating Banking Employees' Communications with Customers for Payment of Outstanding Debts
Control and Awareness Measures for Branch and Customer Service Employees in Banks Operating in the Kingdom
First: Introduction
A. Objective
B. Scope
Second: Definitions
Third: Supervisory Procedures
Fourth: Awareness Procedures
Fifth: General Provisions
Standardization of Notification Elements Sent to Financial Institutions Customers
Table No. (1)
Table No. (2)
Rules Governing Calculation of Annual Percentage Rate (APR)
Banking Tariff
General Instructions
Banking Tariff
Model Contracts
The Standard Contract Forms for Opening Current Bank Accounts for Individuals and Juristic Persons
Finance Contract Summary Form
Mortgage Finance Model Contract for Individuals in Murabaha and Ejarah
Consumer Financing Model Contract
Model Contract of the Financial Lease of Vehicles for Individuals
Enforcement and Financial Penalties
Instructions for Publishing Banking Penalties
Annex: Instructions for Publishing Banking Penalties
Banking Sector Circulars
Annexure I
Annexure II
1. Introduction and Overview of Approaches Available to Implement Basel-II
1.1 Introduction
1.1.1 Final Implementation Document
1.2 Approaches Available to Implement Basel-II
Pillar - I
Pillar - II
Pillar III
2. Scope of Application of Basel II, and Other Significant Items
2.1 Owned or Controlled Financial Entities
2.2. Significant Minority Equity Investments in Non-Insurance Financial Entities
2.2.1 Subsidiaries and Significant Minority Interests in Insurance Entities
2.3 Significant Investments in Commercial Entities
2.4 Stand-Alone Capital
2.5 Regulatory Capital and Risk Weighted Assets
3. Time Frame, Implementation Dates and Parallel Run
3.1 Standardized Approaches
3.1.1 Internal Rating Based Approaches
3.2 Parallel Runs
3.3 Waivers for Exclusions from IRB
Scope of Application and Other Issues
4. Standardized Approach to Credit Risk
Terminology
4.1 External Credit Assessment Institutions (ECAI's)
4.1.1. Claims on Sovereigns
4.1.2. Claims on Banks and Securities Firms
4.1.3. Multilateral Development Banks (MDB’s)
4.1.4. Claims on Public Sector Entities (PSEs)
4.1.5. Claims on Corporates
4.1.6. Claims Included in the Regulatory Non-Mortgage Retail Portfolios
4.1.7. Claims Secured by Residential Mortgages
4.1.8. Claims Secured by Commercial Real Estate
4.1.9 Past Due Loans
4.1.10 Other Assets
4.1.11 Off Balance Sheet Items
4.2 Domestic and Foreign Currency Assessments
4.3. Qualifying External Credit Assessments
4.3.1. Eligible ECAIs and the Mapping Process
4.3.2. Use of Unsolicited Ratings
4.4 National Discretion Items
5. Internal Rating Based Approaches
Section 5.0: Risk Weighting Framework for Credit Risk (IRB Approach)
1. Introduction
1.1 Terminology
1.2 Application
1.3 Background and Scope
2. Mechanics of the IRB Approach
2.1 Categorization of Exposures
2.2 Definition of Corporate Exposures
2.3 Definition of Sovereign Exposures
2.4 Definition of Bank Exposures
2.5 Definition of Retail Exposures
3. Foundation and Advanced IRB Approaches
3.1 General Requirements
3.2 Corporate, Sovereign and Bank Exposures
3.3 Retail Exposures
4. Rules for Corporate, Sovereign and Bank Exposures
4.1 Risk-Weighted Assets for Corporate, Sovereign and Bank Exposures
4.2 Risk Components
5 Rules for Retail Exposures
5.1 Risk-Weighted Assets for Retail Exposures
5.2 Risk Components
6. Treatment of Expected Losses and Recognition of Provisions
6.1 Expected Loss for Exposures other than SL Subject to the Supervisory Slotting Criteria
6.2 Expected Loss for SL Exposures Subject to the Supervisory Slotting Criteria
6.3 Exposures Subject to the IRB Approach
6.4 Treatment of Expected Losses and Provisions
7. Exposure Measurement for Off-Balance Sheet Items
7.1 Exposure Measurement for FX, Interest Rate, Equity, Credit, and Commodity- Related Derivatives
8. Scaling Factor for Risk-Weighted Assets
Major Section 5.1: Implementation Proposals for the IRB Approach and Minimum Requirements for Internal Rating System (Attachment 5.4) and Risk Quantification System (Attachment 5.5)
Attachment 5.1
Appendix– 5.1
Attachment 5.2: Calculation of Capital Floor - Numerical Example
Attachment 5.3: National Discretion – IRB Approach
Attachment 5.4: Minimum Requirements for Internal Rating Systems Under IRB Approach
1. Introduction
1.1 Terminology
1.2 Application
1.3 Background and Scope
2. Composition of Minimum Requirements
2.1 Overview
3. Compliance with Minimum Requirements
3.1 Ongoing Compliance
3.2 Supervisory Approach to Non-Compliance
4. Rating System Design
4.1 Rating Dimensions
4.2 Rating Structure
4.3 Multiple Rating Methodologies/Systems
4.4 Rating Criteria
4.5 Rating Assessment Horizon
4.6 Use of Models
4.7 Documentation of Rating System Design
5. Rating System Operations
5.1 Coverage of Ratings
5.2 Integrity of Rating Process
5.3 Overrides
5.4 Data Maintenance
5.5 Stress Tests Under IRB Approaches
6. Corporate Governance and Oversight
6.1 Corporate Governance
6.2 Credit Risk Control
6.3 Internal and External Audit
6.4 Staff Competence
7 Use of Internal Ratings
7.1 Use Test
7.2 Credible Track Record
8 Disclosure Requirements
Table 1: Summary of Key Aspects of an Internal Rating System
Annex A : Assessment Factors in Assigning Ratings
A1 Borrower Ratings
A2 Facility Ratings
Annex B : Rating Approaches
B1 Background
B2 Point-in-Time Rating System
B3 Through-the-Cycle Rating System
Attachment 5.5: Minimum Requirements for Risk Quantification Under IRB Approach
1. Introduction
1.1 Terminology
1.2 Application
1.3 Background and Scope
2. Composition of Minimum Requirements
2.1 Overview
3. Compliance with Minimum Requirements
3.1 Ongoing Compliance
3.2 Supervisory Approach to Non-Compliance
4. Risk Quantification
4.1 Overall Requirements for Estimation
4.2 Definition of Default for Different Asset Classes
4.3 Definition of Loss for All Asset Classes
4.4 Requirements Specific to PD Estimation
4.5 Requirements Specific to Own-LGD Estimates
4.6 Requirements Specific to Own-EAD Estimates
5. Validation of Internal Estimates
5.1 General Requirements
5.2 Review of Rating System Developments
5.3 Ongoing Analysis
5.4 Back-Testing
Major Section 5.2: Application and Examination Procedures for Adoption of the IRB Approach
Attachment 5.6: Request for Recognition of Internal Rating Systems for Measurement of Credit Risk Capital Charge Under the Internal Ratings-Based (“IRB”) Approach
Attachment 5.7: IRB Recognition Process
Attachment 5.8: The SAMA’s Preliminary Approach to IRB Recognition
Attachment-5.9
Table 2: Supervisory Slotting Criteria for Specialized Lending
Table 2.1 – Supervisory Rating Grades for Project Finance Exposures
Table 2.2 - Supervisory Rating Grades for Income-Producing Real Estate Exposures
Table 2.3 – Supervisory Rating Grades for Object Finance Exposures
Table 2.4 – Supervisory Rating Grades for Commodities Finance Exposures
6. Credit Risk Mitigation
6.1 Financial Collateral
6.2 On Balance Sheet Netting
6.3 Guarantees and Credit Derivatives
6.3.1 Additional Capital Requirements for Credit Derivatives
6.4 Legal and Operational Certainty
6.4.1 Repo Style Transaction
6.5 Maturity Mismatch
6.6 Other Items Related to CRM Techniques
7. Banking Book Equity
7.1. Definition of Equity Exposures
7.2. Market-based Approach (MBA) and PD/LGD Approach
7.2.1 MBA Based Approach
7.2.2 PD/LGD Approach
7.3. Exclusions to the MBA
8. Purchased Receivables
8.1. Definition of Eligible Purchased Receivables
8.2. Rules for Purchased Receivables
9. Shariah Compliant Banking
10. Operational Risk
10.1. Introduction
10.2. Qualifying Criteria for the Standardised Approach (STA), Alternative Standardised Approach (ASA), and Advance Management Approaches (AMA)
10.3. Measurement Methodologies
10.3.1 BIA, STA or AMA
10.3.2 Advance Measurement Approach (AMA)
10.4. Partial Use
10.4.1 Basis for Determining Partial Use
10.4.2 Definition of “Significance” and “Material” for Partial Use Purposes
10.4.3 Partial Use for Banks Using the Standardized Approach
10.4.4 Available Approaches for Partial Use
10.4.5 AMA Specific Issues
10.4.6 Recognition of Insurance
10.4.7 Recognition of Internally Determined Correlations
10.4.8 Other Operational Risk National Discretion Issues
National Discretion Items Operational Risk
11. Pillar 2
11.1 Supervisory Review Process
11.2 Banks Internal Targets
11.3 Substantial Compliance with Pillar 2
11.4 Assessment Criteria for Capital
12. Stress Testing
12.1 Stress Testing Under Pillar 1
12.2 Additional Pillar 1 Guidance on Stress Testing
12.3 Stress Testing Under Pillar 2
12.4 Other Aspects Related to Stress Testing
Amounts Excluded from Seizure under Judicial Orders
Introduction
Chapter One: Definitions
Chapter Two: General Provisions
Chapter Three: Final Provisions
Chapter Four: Enforcement
1- Introduction - SADAD Account Pricing Objective
2- SADAD Account Overview
3- SADAD Account Pricing Philosophy
4- Pricing Methodology
5- SADAD Account - Pricing details
5.1- SADAD Account - Fee calculation
5.2- SADAD Account - Fee split
6- SADAD Account - Account Management Fees
FAQ
Annex I
SAMA Banking Supervision Department Prudential Returns on Small and Medium Size Enterprises Data as at the End of (xxx)
SAMA Banking Supervision Department Small and Medium Size Enterprise
Guidance Notes
Saudi Network Clearing and Settlement
Automated Claims Processing System for Saudi Network Operations (CPS)
GCC Network Clearing and Settlement
Claims Processing System for Gulf Network Operations on its website
Special Cases in Saudi Network Users' Claims
Forms of Bonds
APPENDIX F-l
APPENDIX F-2
APPENDIX F-3
A list of names of social development centers affiliated with the Ministry of Social Affairs
The New Rule under Rule No. (300-1-3-6) regarding the Requirements for Opening and Managing Bank Accounts for Escrow Accounts for Real Estate Development Projects
Controls for Opening and Managing Escrow Accounts for Real Estate Contribution Projects
General Provisions
1. Introduction
2. Definitions
3. Scope and level of application
4. Principle 1: Legal basis
5. Principle 2: Governance
6. Principle 3: Framework for the comprehensive management of risks
7. Principle 4: General business risk
8. Principle 5: Operational risk
9. Principle 6: Access and participation requirements
10. Principle 7: Tiered participation arrangements
11. Principle 8: FMI links
12. Principle 9: Efficiency and effectiveness
13. Principle 10: Communication procedures and standards
14. Principle 11: Disclosure of rules, key procedures, and market data
15. Principle 12: Disclosure of market data by trade repositories
Other Provisions
16. Asset Classes
17. Acceptance of Derivative Trade Data
18. Retention of Derivative Trade Data
19. Separation of Functions
20. Outsourcing of Functions
21. Keeping of Records
22. Effective date
23. Effective date