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Chapter I: Definitions, General Provisions and Scope of Application

1. Definitions

For the purpose of applying the provisions of these Principles, the following terms and phrases, wherever mentioned herein, shall have the meanings assigned thereto unless the context otherwise requires:

Term	Definition
SAMA	The Saudi Central Bank.
Principles	Compliance Principles for Finance and Real Estate Refinance Companies.
Company	Finance Company and Real Estate Refinance Company licensed by SAMA.
Board	Company's Board of Directors.
Executive Management	Individuals who run the Company's day-to-day business and propose and implement strategic decisions. The Executive Management is considered the senior management.
Unit	The Company's compliance function/department, which reports directly to the Audit Committee.
Compliance Officer	Compliance Unit's officer/manager in the Company.
Unit Staff	All Compliance Unit's staff who perform compliance-related duties and responsibilities.
Laws	The laws that apply to the Company and its Staff.
Instructions	All binding regulations, rules, principles, frameworks, guidelines and circulars issued by SAMA, in exercise of its role as a regulatory and supervisory authority, and other competent entities.
Non-Compliance Risk	Risks that result in the application of penalties or regulatory measures against the Company, or lead to it incurring financial losses or harming its reputation as a result of non-compliance with laws and instructions.

2. General Provisions

a.	These Principles aim to:
	1.	Promote sound practices in the Company, and continuously ensure the effectiveness and implementation of compliance policies.
	2.	Promote a compliance culture that is integral to the Company's culture, taking into account that its scope of integration goes beyond the Unit Staff to include all of the Company's employees.
	3.	Define the responsibilities of the Board, the Audit Committee, the Executive Management, the Compliance Unit, the Company's o employees, and the Internal Audit Department towards compliance.
	4.	Set the minimum requirements to enable the Unit to perform its duties efficiently, professionally and effectively.
b.	These Principles shall not prejudice the requirements imposed on finance and real estate refinance companies under relevant laws and instructions, including but not limited to:
		Finance Companies Control Law and its Implementing Regulations. Real Estate Finance Law and its Implementing Regulations. Anti-Money Laundering Law and its Implementing Regulations. Law of Combating Crimes of Terrorism and its Financing and its Implementing Regulations. The Rules Governing Real Estate Refinance Companies. Rules for Engaging in Debt-Based Crowdfunding. Rules for Regulating Buy-Now-Pay-Later (BNPL) Companies. Anti-Fraud Rules for Finance Companies. Key Principles of Governance in Financial Institutions under the Control and Supervision of the Saudi Central Bank. Code of Conduct and Work Ethics in Financial Institutions Financial Consumer Protection Principles and Rules. The Requirements for Appointments to Senior Positions in Financial Institutions Supervised by SAMA. Debt Collection Regulations and Procedures for Individual Customers Rules for Establishing a Customer Care Department in Finance Companies. The Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Guide. Whistle Blowing Policy for Financial Institutions.

3. Scope of Application

a.	The provisions of these Principles shall apply to finance and real estate refinance companies.
b.	These Principles shall serve as a guide to finance support companies and finance lease contract registration companies. SAMA may, at any time, enforce all or some of these Principles.