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  • Chapter 9: Penalties and Appeals

    • Article 32

      1.Without prejudice to any harsher penalty stipulated in any other law, the competent authority shall impose on any financial institution a fine not exceeding 2% of its capital if any of the following violations are committed:
       
       a)Failure to prepare or update a recovery plan in cases requiring such measures.
       
       b)Failure to cooperate with the competent authority to prepare or implement the resolution plan, or hindering the implementation of any part thereof.
       
       c)Failure of the SIFI to notify the competent authority of an actual or potential crisis.
       
       d)Provision of support by the financial institution to a sister financial institution in violation of Article 11(2) of this Law.
       
       e)Failure to provide information or documents requested by the competent authority for the purpose of implementing this Law.
       
       f)Failure to comply with the orders of the competent authority issued in accordance with this Law regarding foreign assets and liabilities without acceptable justification.
       
      2.The competent authority shall impose on a foreign branch a fine not exceeding five million riyals if it violates Article 30(1) of this Law.
       
      3.The competent authority may impose the penalties stipulated in paragraphs (1) and (2) of this Article on any member of the management team of the financial institution or the foreign branch who has caused or contributed to the violations referred to in paragraphs (1) and (2) of this Article.
       
      4.The competent authority shall, when imposing the penalties stipulated in this Article, take into account the size of the financial institution and the gravity and impact of the violation.
       
      5.An aggrieved party may file an appeal before the competent court within 30 days from notification of the penalty decision.
       

    • Article 33

      A party with interest may appeal before the competent court against decisions and procedures taken by the competent authority in accordance with the provisions of this Law. The competent court may compensate the aggrieved party or rule to remedy the damage by any means, provided that: 
       
      1.the appeal does not entail stay of execution of the relevant decision or the procedure;
       
      2.the annulment of the decision or the procedure is premised on lack of jurisdiction, a fault in the form or the cause, a violation of the provisions of this Law, an error in the characterization or interpretation of the violation, or an abuse of power; the ruling shall be limited to compensation if an annulment ruling would prejudice the rights of bona fide third parties to whom assets or liabilities of the SIFI under resolution are transferred; and
       
      3.compensation claims are not heard after the lapse of five years from the date of knowledge of the procedure or the date of issuance of the decision subject of the claim.