The Rules of Licensing Finance Support Activities set forth the provisions for licensing finance support activities. SAMA has produced the forms for license application and published them on its website, which can be accessed through the link:

Finance (sama.gov.sa)

1. The license application form must not be modified in any way. The license application and a copy must be submitted by the founders or their duly authorized representatives.
2. The required forms and documents stated in the license application form must be submitted in paper or electronic format, as the checklist indicates.
3. The terms and phrases mentioned in the license application form must have the same meanings stated in the Rules of Licensing Finance Support Activities. The term "applicant" must mean the founders or representatives of the company applying to obtain the approval of SAMA to complete the incorporation procedures and obtain a license to practice finance support activities.
4. The applicant must ensure that the information provided is valid, accurate, comprehensive, and complete. Providing SAMA with false information or failing to disclose material information that should have been disclosed for licensing purposes is considered a violation of the Rules of Licensing Finance Support Activities and may result in the rejection or cancelation of the application.
5. The license application and any inquiries about it can be submitted to the following e-mail: LICFCC@SAMA.GOV.SA

The forms and documents specified in the checklist in the license application form may be submitted in paper or using a USB flash drive containing identical electronic copies, as stated in Section IV below. The forms and documents may also be submitted electronically through the e-mail specified in Section II above. The original documents must be presented upon request.

1. License application letter (soft or hard copy).
2. License application form, as approved by SAMA, after completing all sections (soft copy).
3. A copy of the memorandum of association and the articles of association -if any- (soft copy).
4. A list of founding members or shareholders/partners, the shares they own in the company, and their percentage.
5. The organizational structure including all necessary departments and functions with their mandates (soft copy).
6. Fit and Proper Form approved by SAMA for each founding member after being completed, signed by each founding member, and approved by the person authorized to submit the license application (soft or hard copy).
7. Fit and Proper Form approved by SAMA for each candidate for membership in the board of directors after being completed and signed by the candidate and approved by the person authorized to submit the license application (soft or hard copy).
8. A feasibility study identifying the targeted market, the services to be offered, the company's business model and strategy, and the three-year business plan.
9. An irrevocable bank guarantee equal to the minimum capital of the activity issued by any local bank for SAMA and automatically renewed until the capital is paid in full.
10. As an exception to Paragraph (9) of this Section, the bank guarantee provided to companies that practice the activity only through financial technology must be equivalent to 20% of the minimum capital of the activity, provided that the minimum capital is paid before obtaining the final license.
11. Draft agreements and contracts proposed with third parties, especially agreements and contracts with related parties and external service providers (soft copy).

1. The applicant must complete the license application form according to Sections III and IV above and submit it to SAMA along with the documents specified in the application form's checklist.
2. SAMA will notify the applicant -in writing- of their application completion upon fulfilling all the requirements set forth in the Rules of Licensing Finance Support Activities.
3. After completion of the application, SAMA will notify the applicant -in writing- of its initial approval or reasoned rejection within 30 business days. SAMA's initial approval must not be considered a license or authorization to practice the activity.
4. The application will be referred to the Ministry of Commerce to finalize the procedures for establishing the company and registering it in accordance with the Companies Law. The company must provide SAMA with a copy of the commercial register indicating the activities licensed according to SAMA's initial approval (within six months from the initial approval date). Moreover, the company must provide a copy of the memorandum of association and the articles of association -if any-following the establishment. It shall also present proof of full payment of the capital and any additional initial funding indicated in the business plan, in addition to taking all necessary steps to start practicing the activity, such as recruiting human resources and procuring systems and equipment.
5. The company must provide SAMA with proof that the company has obtained the Legal Entity Identifier (LEI) from the Saudi Operating Unit accredited by the Global Legal Entity Identifier Foundation (GLEIF).
6. SAMA specialists will visit the company's premises, meet its executives, and review the regulations, procedures and records to verify that the regulatory requirements are met and that the company is ready to practice the activity.
7. SAMA will issue a decision to grant the license after the company fulfills the requirements mentioned in this Section's Paragraphs (4) and (5).

The Finance Companies Control Law and the Rules for Engaging in Debt-Based Crowdfunding set forth the provisions regulating licensing for debt-based crowdfunding activity. SAMA has prepared and published the required licensing forms on its website, which can be viewed through the following link: www.sama.gov.sa/ar-sa/Laws/Pages/Finance.aspx.

The forms and documents specified in the checklist in the license application may be submitted in hard copies or using a USB flash drive containing identical electronic copies, as stated in Section IV below. The forms and documents may also be submitted electronically through the e-mail provided in Section II above. The original documents must be presented upon request.

The Finance Companies Control Law, and the Rules for Regulating Buy-Now-Pay-Later(BNPL) Companies outline the provisions governing the licensing to engage in deferred payment activities. SAMA has prepared the necessary forms for applying for a license and published them on its official website.

1. The license application form may not be modified in any way. The license application form must be submitted by the founders or their authorized representative under a certified authorization with a copy attached.
2. The forms and documents specified in the license application must be submitted in electronic copies as shown in the list.
3. The terms and expressions used in the license application form shall have the meanings defined in the Finance Companies Control Law and the Rules for Regulating Buy-Now-Pay-Later (BNPL) Companies. The term "applicant" refers to the founders or shareholders of the company applying for SAMA's approval to complete the establishment and licensing procedures to engage in deferred payment activities.
4. The applicant must ensure the accuracy, completeness, and thoroughness of the information provided in the license application. Providing false information or omitting material disclosures that should have been made for licensing purposes constitutes a violation of the provisions of the Finance Companies Control Law and Article (7) thereof, and may result in the rejection or cancellation of the license application.
5. Applications for licensing and inquiries can be submitted via email.

The forms and documents specified in the checklist of the license application must be submitted electronically via the email provided in Section Two above, along with a commitment to provide the original documents upon request.

1. Letter of application for a license to Practice (BNPL) Activity (electronically).
2. license application form, as approved by SAMA, after completing all sections shown in the form (electronically).
3. A copy of the memorandum of association and the articles of association -if any- (electronically), and a copy of the commercial register and the memorandum of association and the articles of association (if applicable) for the existing company (electronically).
4. The organizational structure including all necessary departments and functions and the main tasks of each of them (electronically).
5. Fit and Proper Form approved by SAMA for each founder after being completed and signed by the founder, and approved by the person authorized to submit the license application (electronically).
6. Fit and Proper Form approved by SAMA for each candidate for membership in the board of directors and subcommittees after being completed and signed by the candidate and approved by the person authorized to submit the license application (electronically).
7. Economic feasibility study and business plan, according to the details specified in the license application form.
8. An irrevocable bank guarantee in an amount equivalent to 20% of the minimum capital for the activity to be licensed, by any local bank for SAMA, which is automatically renewed until the full capital is paid (electronic copy with a commitment to provide the original bank guarantee letter upon request).

1. The license applicant must complete the specific license application form as outlined in sections Three and Four above, and submit it to SAMA along with all attachments specified in the checklist in the license application form.
2. SAMA will notify the license applicant in writing of the completion of their application after fulfilling all the requirements stipulated in the Rules for Regulating Buy-Now-Pay-Later (BNPL) Companies.
3. SAMA will inform the license applicant in writing—after the application is complete—of the preliminary approval or reasoned rejection within (60) working days from the date they are notified of the completion of their application. The preliminary approval from SAMA does not constitute a grant of the license or permission to engage in the activity.
4. The application will be referred to the Ministry of Commerce to complete the company's establishment procedures and registration according to the Companies Law, or to complete the procedures for regularizing the status of an existing company. The company must provide SAMA with a copy of the commercial register, the Articles of Incorporation, and its bylaws after its establishment or regularization, along with proof of full capital payment and any additional initial funding outlined in the business plan, and take all necessary measures to start the activity, such as providing the necessary human resources, systems, and equipment.
5. The company must provide SAMA with confirmation of obtaining a legal entity identifier from the Saudi operating unit accredited by the central registration unit (GLEIF) for the Legal Entity Identifier (LEI) system.
6. Specialists in SAMA will visit the company's headquarters, meet with its officials, and review the systems, procedures, and records to verify compliance with regulatory requirements and the company's readiness to engage in the activity.
7. SAMA will issue a decision to grant the license after the company has completed the requirements outlined in paragraphs (4) and (5) of this section.

The Finance Companies Control Law and its Implementing Regulations outline the provisions governing the licensing for conducting financing activities and refinancing operations. The Central Bank has prepared the necessary forms for applying for a license and published them on its official website, which can be accessed through the following link: sama.gov.sa/ar-sa/Finance/Pages/FinanceForms.aspx. 

1. It is prohibited to modify the license application form in any way. The license application form must be submitted by the founders or their authorized representatives, accompanied by a certified authorization copy.
2.  The forms and documents specified in the license application must be submitted in either paper or electronic copies as indicated in the list. 

3. The terms and phrases in the license application form shall have the meanings specified in the Finance Companies Control Law and its Implementing rules.

   The term "Applicant" refers to the founders or shareholders of the company seeking the Central Bank's approval to complete the establishment and licensing procedures for conducting financing activities and refinancing operations. 

4. The applicant must ensure the accuracy, precision, comprehensiveness, and completeness of the information provided in the license application. Providing false information to the Central Bank or omitting to disclose essential information that should have been disclosed for licensing purposes is a violation of the provisions of the Regulation on Monitoring Finance Companies and Article 7 thereof, which may lead to the rejection or cancellation of the license application.
5. Applications for licensing and inquiries regarding license requests can be submitted via email at (LICFCC@SAMA.GOV.SA).

The forms and documents specified in the checklist of the license application must be submitted in paper format along with a USB storage device containing an electronic copy that matches the paper version, as outlined in clause four below. Alternatively, they may be submitted electronically via the email mentioned in clause two above, with a commitment to provide the original documents upon request.

1.  A letter requesting to apply for a license to conduct financing activities (in paper or electronic format).
2.  The License Application Form approved by the Central Bank, completed according to the sections outlined in the form (electronically).
3.  A copy of the draft incorporation contract and the draft company bylaws (electronically).
4.  A description of the organizational structure, including all necessary departments and functions along with their primary tasks (electronically).
5.  The Fit and Proper form from the Central Bank for each founder, completed, signed by the founder, and certified by the authorized person submitting the license application (in paper and electronic formats).
6.  The approved suitability requirement form from the Central Bank for each candidate for the Board of Directors and subcommittees, completed, signed by the candidate, and certified by the authorized person submitting the license application (in paper and electronic formats).
7.  A detailed economic feasibility study and business plan, according to the specifics outlined in the license application form.
8.  An irrevocable bank guarantee equivalent to the minimum capital requirement for the proposed licensed activity, issued in favor of the Central Bank by a local bank, automatically renewed until the full capital is paid (in paper or an electronic copy with a commitment to provide the original bank guarantee letter upon request).
9.  Proposed drafts of agreements and contracts with third parties, especially agreements and contracts with related parties and external service providers (electronically).

1.The license applicant must complete the specific license application form as outlined in sections three and four above and submit it to the Central Bank along with all attachments specified in the checklist in the license application form.

2. The Central Bank will notify the license applicant in writing that their application is complete after fulfilling all the requirements stipulated in the Finance Companies Control Law and its Implementing Regulations.

3. The Central Bank will inform the license applicant in writing—after the application is complete—of either the preliminary approval or reasoned rejection within (60) business days. The Central Bank's preliminary approval does not constitute the granting of a license or permission to conduct activities.

4. The application will be forwarded to the Ministry of Commerce to complete the company's establishment procedures and registration according to the Companies Law. The company must provide the Central Bank with a copy of its commercial registration, incorporation contract, and bylaws after establishment, along with proof of full capital payment and any additional initial funding outlined in the business plan, and take all necessary steps to commence operations, such as providing required human resources, systems, and equipment.

5. The company must provide the Central Bank with confirmation of obtaining a Legal Entity Identifier (LEI) from the approved Saudi operating unit of the Global Legal Entity Identifier Foundation (GLEIF).

6. Specialists at the Central Bank will visit the company's premises, meet with its officials, and review systems, procedures, and records to verify compliance with regulatory requirements and the company's readiness to conduct activities.

7. The Central Bank will issue a decision to grant the license after all regulatory requirements are met and the applicable fees, specified in Article 22 of the Implementing Regulation of the Finance Companies Control Law, are paid.

1- Saudi Arabian Monetary Authority (SAMA) has issued these Rules based on the powers vested therein under Finance Companies Control Law issued by Royal Decree No. (M/51) dated 13/8/1433H and its Implementing Regulation issued by SAMA’s Governor decision No. (2/MFC) dated 14/4/1434H.

2- The objective of these Rules is to introduce general principles and minimum standards that shall be met by Finance Companies to detect and prevent Fraud.

3- A Finance Company shall make these Rules part of its internal regulations and procedures. The Rules shall also be applied in conjunction with the provisions and articles of Finance Companies Control Law and its Implementing Regulation. Non-compliance with the requirements set forth herein shall be deemed a violation of Finance Companies Control Law and its Implementing Regulation and may subject the Finance Company to regulatory penalties.

4- The following terms and phrases, wherever mentioned herein, shall have the meanings assigned thereto unless the context requires otherwise:

Rules: Anti-Fraud Rules for Finance Companies.

SAMA: Saudi Arabian Monetary Authority.

Fraud: An act or omission intended to gain, directly or indirectly, an advantage, that would not be gained otherwise, for the party committing the fraud or for other parties. This includes, but is not limited to, the following:

a. use of documents containing incorrect information;

b. non-disclosure or deliberate concealment of information required by law;

c. abuse of authority, a position of trust, or a fiduciary relationship; and 

d. asset misappropriation.

 Finance Company: A joint-stock company licensed by SAMA to engage in finance activities.

5- The Finance Company shall develop an anti-fraud strategy aligned with its risk profile and business. The strategy shall be approved by the Finance Company’s board of directors and updated regularly to ensure its alignment with corporate ever-evolving business environment.

6- The Finance Company shall design a structure for fraud control. The structure shall be commensurate with the size and nature of the Company’s business so as to facilitate control and implementation of anti-fraud policies by the Company’s management and ease communication between departments in case of suspicion or detection of fraud.

7- The Finance Company shall put in place policies and procedures to implement anti-fraud and risk management strategies. Such policies and procedures shall be updated regularly and tested in terms of effectiveness to keep abreast of developments in fraud. A copy of such policies and procedures shall also be provided to SAMA.

8- Policies shall be based on an analysis of fraud risks to which a Finance Company is exposed.

9- Policies and procedures shall include, at a minimum, the following:

a. the role of employees in the implementation of anti-fraud strategy, and identification of individuals responsible for its implementation;

b. standards for the detection and prevention of fraud;

c. a mechanism clarifying the procedures and communication methods for internal reporting of suspicious or actual cases of fraud, identifying the party responsible for investigating fraud cases inside the Company, and designating the available external reporting channels and the protection offered to whistleblowers;

d. a policy on retention of documents containing details of suspicious and actual cases of fraud; and

e. a mechanism for training the Company’s employees on a regular basis to raise awareness of fraud risks and prevention methods.

10- The Finance Company shall develop a mechanism to ensure the soundness of financed asset’s valuation carried out by the accredited valuer.

11- The Finance Company shall establish a mechanism to ensure the implementation of its credit policy on financing contracts.

27- Board of Directors of Finance Company: The Company’s board of directors is responsible for the control of fraud. The board’s activities shall include, at a minimum, the following:

a. approving anti-fraud strategy and policies.

b. ensuring the provision of resources necessary for the implementation of the strategy and policies.

28- Employees of Finance Company: The Finance Company’s employees, whether permanent or contractors, shall be responsible for monitoring fraud in their work and shall report any suspicious cases of fraud immediately.

29- Internal Audit Department: The Internal Audit Department shall be responsible for the following:

a. tracking fraud incidents during the performance of its work, collecting necessary evidence in case of a suspicion, and investigating suspicious transactions; and

b. conducting regular assessment to verify the effectiveness of and compliance with anti-fraud policies and procedures and ensure appropriate and timely dealing with suspicious cases of fraud، proper documentation of actions taken، and inclusion of said information in the audit department’s report prescribed in the Implementing Regulation of the Finance Companies Control Law.

30- External Auditor: The external auditor shall be responsible for verifying the Company’s compliance with anti-fraud policies.

31- These Rules shall enter into force after 180 days from the day of their promulgation, and shall be published on SAMA’s website.

Form For Reporting Fraud to SAMA

1. The General Committee is composed of the following:

• A Chair and a Deputy Chair, selected by the committee members themselves every two years.
• Members who are General Managers or Executive Managers of financing companies in the Kingdom of Saudi Arabia.
• A Secretary and a Deputy Secretary.

1. Financing companies shall appoint a representative from their General Managers or Executive Managers to be members of the General Committee.
2. The Chair and Deputy Chair of the General Committee are appointed by the committee members through a majority vote every two years.
3. The Chair of the General Committee appoints the Secretary and Deputy Secretary every two years.
4. A new Chair for the General Committee must be nominated at the last meeting held at the end of the statutory term (two years) through a majority vote.
5. The Chair or Deputy Chair of the committee cannot be nominated for the same position for two consecutive terms.
6. The roles of Chair of the General Committee and the Executive Committee cannot be held concurrently.
7. The member representing a company shall be relieved of their duties as soon as their employment with the company ends, and the company they represent must nominate another member to replace them.

1. The General Committee shall hold meetings at least once a year. The meetings may also be convened if the Chair deems it necessary or if nine (9) members of the General Committee request it in writing.
2. The General Committee shall hold meetings at the Financial Institute or at a location agreed upon by the majority of the members.
3. A meeting of the General Committee is considered valid if attended by at least two-thirds of the members.
4. All members are required to attend General Committee meetings. A member may delegate a representative from the company to attend and vote at the meetings, provided that the representative is appointed by the company’s senior management.
5. General Committee members cannot delegate other representatives for two consecutive meetings.
6. The General Committee must adhere to the meeting agenda as scheduled.
7. The General Committee makes its decisions in meetings through majority voting.
8. In the event of a tie vote, the Chair’s vote is decisive. Members who disagree should record their objections in the meeting minutes.
9. Members may abstain from voting on any decisions made in the meetings, and the reasons for abstention should be recorded in the meeting minutes.
10. The General Committee may invite any expert to participate in the meetings with the Chair’s approval, without the right to vote.
11. Discussions should be conducted with high professionalism and in an organized manner, and should not include topics not listed in the meeting agenda.
12. All members must maintain the confidentiality of information discussed during the meetings.
13. The Chair must ensure that members adhere to the rules and guidelines governing the committee meetings, which all members are required to follow.

1.Members should inform the Committee Chair of the topics they believe will contribute to achieving the desired goals of the meetings. The Chair should consider the proposed topics when approving the agenda.

2. The agenda should be prepared by the Secretary or their Deputy, including all the topics to be discussed in the meeting, and then approved by the Committee Chair.

3. The Secretary or their Deputy must send the agenda along with the documents to be discussed in the meeting to all Committee members and a copy to the Central Bank representative at least ten (10) working days before the meeting via email.

4. The Secretary must prepare meeting minutes after each Committee meeting, recording the names of attendees, all topics discussed, decisions voted on, objections, and cases of abstention, including reasons if any.

5. The Secretary or their Deputy must send the meeting minutes to all Committee members and the Central Bank representative within ten (10) working days after the meeting via email, before being approved and signed by the Committee Chair and the Secretary. The Secretary should be provided with any comments and feedback within five (5) working days from receiving the meeting minutes.

6. The Secretary must keep all reports and minutes in a manner that allows for easy retrieval. When the Chair's committee, upon the expiration of their term, provide the Central Bank representative with all documents through a handover report. The Central Bank representative will then pass the documents to the new Committee Chair.

General Committee

1.Form an Executive Committee from among its members under the name "Executive Committee," nominate its members, and also nominate three reserve members for the Executive Committee.

2. Provide general guidance and direction to the Executive Committee regarding common issues faced by the finance sector in the Kingdom of Saudi Arabia.

3. Monitor the activities of the Executive Committee for General Managers and evaluate its performance to ensure its effectiveness and achievement of the desired goals.

4. Propose and make necessary amendments to this document and develop it as needed, by majority vote, provided that the Central Bank does not object to these amendments before final approval.

Chair of the Committee

5. Ensure the effectiveness and success of the General Committee, in addition to the ongoing follow-up of all tasks assigned to the General Committee.

6. Develop the General Committee's plans to contribute to the accomplishment and development of the Committee's work.

7. Manage discussions and debates in General Committee meetings and provide a conducive environment in meetings to help achieve the benefits of exchanging views and perspectives efficiently.

8. Communicate with the Executive Committee to ensure tasks and projects assigned to it are progressing as required.

9. Provide the Central Bank's representative with all documents through a handover report at the end of their term, so the representative can then hand over the documents to the new Committee Chair.

10. Sign with the Secretary and approve the final version of the meeting report.

11. Deliver to the Central Bank an updated copy of this document at the beginning of each calendar year, including the desired objectives of any changes made, if applicable.

Vice Chair of the Committee

12. If the Chair of the General Committee is replaced, leaves, or is relieved before the end of their term, the Vice Chair will take their place and assume all their responsibilities.

‏Secretary

13. Prepare all arrangements for meetings, including the meeting venue; organize and coordinate the proposed topics in the agenda and have it approved by the Committee Chair. Responsible for sending the agenda along with the documents to be discussed in the meeting to all Committee members and a copy to the Central Bank representative via email at least ten (10) working days before the meeting.

14. Prepare meeting minutes after each Committee meeting, recording the names of attendees, all topics discussed, decisions voted on, objections, and cases of abstention, including reasons if any.

15. Send the meeting minutes to all Committee members and the Central Bank representative within ten (10) working days after the meeting via email, before they are approved and signed by the Committee Chair and the Secretary. Comments and feedback should be provided to the Secretary within five (5) working days from receiving the report.

16. Sign with the Chair on the final version of the meeting report.

17. Keep all reports and minutes in a manner that allows for easy retrieval.

Deputy Secretary

18. If the Secretary of the General Committee is absent, leaves, or is relieved before the end of their term, the Deputy Secretary will take their place and assume all their responsibilities.

Committee Members

19. Participate in the issues, risks, and challenges facing them that impact the finance sector.

20. Stay informed about all developments in the finance sector, including new regulations and changes to existing rules, whether from the Central Bank or other relevant regulatory bodies, in addition to keeping up with international developments.

21. Adhere to high professionalism by actively participating in the discussions during Committee meetings.

1. The General Committee shall form the Executive Committee once every two years.

2. The Executive Committee shall be composed of the following:

• A Chair and a Deputy Chair, who are elected by the Committee members every two years, subject to the Central Bank's approval.
• A Secretary and a Deputy Secretary.

1. The members of the Executive Committee and the reserve members shall be nominated every two years by the General Committee members through a majority vote. The Executive Committee shall have no fewer than seven (7) members and no more than nine (9) members, and there shall be no fewer than three (3) reserve members.
2. The Chair and Deputy Chair of the Executive Committee shall be appointed by the Executive Committee members through a majority vote every two years, following approval from the Central Bank.
3. The Chair of the Executive Committee shall appoint a Secretary and a Deputy Secretary every two years.
4. If any member leaves before the end of their current term, the Executive Committee shall appoint a replacement from the reserve members designated by the General Committee. The replacement member will assume the position of the resigning member until the end of the current term. The Executive Committee must notify the General Committee of the replacement member.
5. Any member of the Executive Committee shall be exempted if they leave, are relieved, or resign from the company they represent.

1. The Executive Committee shall hold its meetings at least four times a year. It may also convene if the Chair deems it necessary or if two (2) members of the Executive Committee request it in writing.
2. The Executive Committee shall hold its meetings at the Financial Institute or at a location agreed upon by the majority of members.
3. A meeting of the committee is valid if attended by at least two-thirds of the members.
4. Members of the Executive Committee are not allowed to delegate others to attend meetings or vote on decisions.
5. Members of the Executive Committee must adhere to the planned meetings.
6. Decisions of the Executive Committee are made by majority vote during meetings.
7. In the event of a tie vote, the Chair’s vote will be decisive. Members who oppose a decision should record their comments in the meeting minutes.
8. A member may abstain from voting on any decisions made in the meetings, and the reasons for abstention should be recorded in the meeting minutes.
9. The Executive Committee may invite any expert to participate in meetings with the Chair’s approval, although they will not have voting rights.
10. Discussions should be conducted with high professionalism and in an organized manner, ensuring that they do not include topics not listed in the agenda.
11. All members must maintain the confidentiality of information shared within the meeting.
12. The Chair must ensure that members adhere to the rules and regulations governing committee meetings, which all members must follow.

1. Members should inform the Committee Chair of topics they believe will contribute to achieving the desired goals of the meetings. The Chair should consider the proposed topics when approving the agenda.
2. The agenda should be prepared by the Secretary or their Deputy, including all topics to be discussed in the meeting, and then approved by the Committee Chair.
3. The Secretary or their Deputy must send the agenda along with the documents to be discussed in the meeting to all Committee members and a copy to the Central Bank's representative at least ten (10) working days before the meeting via email.
4. The Secretary must prepare meeting minutes for all meetings, which should include at a minimum the names of attendees, all topics discussed, decisions voted on, objections, and cases of abstention, including reasons if any.
5. The Secretary or their Deputy must send the meeting minutes to all Committee members and the Central Bank's representative within ten (10) working days after the meeting via email, before they are approved and signed by the Chair and the members. Comments and feedback should be provided to the Secretary within five (5) working days from receiving the minutes.
6. The Executive Committee must prepare a charter when establishing any sub-committee. The charter should include at a minimum the committee’s name, purpose, objectives, role, responsibilities, authority, composition, the process for nominating, appointing, and relieving members, whether the committee is permanent or temporary (with duration if temporary), meeting procedures, required reports, and their submission process. The charter must be approved by the Chair of the Executive Committee and must receive the Central Bank's approval for each sub-committee charter.
7. When nominating members for sub-committees, there should be fair representation of licensed finance companies, ensuring no more than one representative per company on the same committee.
8. The Executive Committee must prepare an annual comprehensive report, accompanied by all charters and necessary documents, and provide it to the General Committee and the Central Bank. The report should include at a minimum the key decisions made by the committee, the number of meetings held during the period, the names of attendees, and the names, status, and major achievements of sub-committees throughout the year.
9. The committee must ensure clarity and accuracy in the reports it prepares.
10. The Secretary must keep all reports, minutes, and documents in a manner that allows for easy retrieval. At the end of their term, the Chair must provide all documents to the Central Bank's representative through a handover report, so the representative can then pass the documents to the new Chair.

Executive Committee

1. Study and implement all tasks assigned to it by the General Committee.

2. Establish temporary or permanent sub-committees, including preparing a charter that, at a minimum, covers the name of the sub-committee, its purpose and goals, its role and responsibilities, its composition, the process for appointing and relieving members, whether the committee is permanent or temporary (with duration specified if temporary), meeting procedures, required reports, and their submission process.

3. Ensure that sub-committees comply with all applicable regulations, rules, guidelines, and instructions.

4. The Executive Committee has the right to reconstitute any of the permanent or temporary sub-committees and to dissolve them before their term ends through a decision made by a majority vote.

5. Evaluate and monitor the performance of existing sub-committees periodically to ensure their effectiveness.

6. Prepare a comprehensive report, accompanied by all charters and necessary documents, and provide it to the General Committee and the Central Bank. This report should include, at a minimum, key decisions made by the committee, the number of meetings held during the period, the names of attendees, as well as the names, status, and major achievements of sub-committees throughout the year.

7. Focus on contributing to the development of the finance sector in the Kingdom of Saudi Arabia by adhering to best practices and international standards that benefit the sector in general and its stakeholders in particular.

8. Take necessary actions to stay updated on all developments in the finance sector, particularly those related to international standards and guidelines issued by local and international bodies that work on enhancing corporate governance practices and regulations.

Chair of the Committee

9. Ensure the effectiveness and success of the committee, as well as continuously follow up on all tasks assigned to the committee.

10. Develop plans for the Executive Committee that will contribute to the accomplishment and advancement of the committee’s work.

11. Manage discussions and debates during Executive Committee meetings, providing a conducive environment for meetings that facilitates achieving the desired benefits from exchanging opinions and viewpoints efficiently.

12. Approve the charter for establishing any sub-committees.

13. Define strategies and priorities for implementing committee decisions and seek new ideas to improve and develop the committee's role.

14. Provide the Central Bank's representative with all documents through a handover report at the end of their term so the representative can then transfer the documents to the new Chair.

15. Communicate and follow up with the Central Bank regarding pending issues, performance improvement, and achieving the committee's objectives.

Deputy Chair of the Committee

16. If the Chair of the Executive Committee is absent, leaves, or is relieved before the end of their term, the Deputy Chair will assume their responsibilities.

Secretary

17. Prepare all arrangements for meetings, including the meeting venue.

18. Prepare the agenda, including all topics to be discussed in the meeting, and obtain approval from the Chair.

19. Send the agenda along with the documents to be discussed in the meeting to all committee members and a copy to the Central Bank's representative at least ten (10) working days before the meeting via email.

20. Prepare meeting minutes for all meetings, which should include at a minimum the names of attendees, all topics discussed, decisions voted on, objections, and cases of abstention, including reasons if any.

21. Send the meeting minutes to all committee members and the Central Bank's representative within five (5) working days after the meeting via email, before they are approved and signed by the Chair and the members. Comments and feedback should be provided to the Secretary within five (5) working days from receiving the minutes.

22. Keep all reports, minutes, and documents in a manner that allows for easy retrieval.

Deputy Secretary

23. If the Secretary of the Executive Committee is absent, leaves, or is relieved before the end of their term, the Deputy Secretary will assume their responsibilities.

Committee Members

24. Discuss all financial, operational, and regulatory issues, as well as all risks, opportunities, and key challenges they face, with the aim of exchanging expertise and achieving mutual benefits.

25. Stay informed about all developments in the finance sector, including new rules and changes to existing rules, whether issued by the Central Bank or other relevant regulatory bodies, as well as international developments.

26. Members must maintain high professionalism by actively participating in discussions during committee meetings.

1. The Executive Committee shall form permanent and temporary sub-committees as needed.

2. The Executive Committee must, at a minimum, establish permanent sub-committees to address the following topics:

• Matters related to real estate financing.
• Matters related to leasing financing.
• Matters related to awareness and media.
• Matters related to risk management.
• Matters related to compliance, anti-money laundering, and counter-terrorism financing.
• Matters related to financial issues.
• Matters related to the protection of customers.

3. Each sub-committee is composed of a Chairperson and a Vice-Chairperson, who are elected by the Executive Committee members every two years.

4. Each sub-committee also includes a Secretary and a Deputy Secretary.

1. The Chairperson and Vice-Chairperson of the subcommittee are elected by a majority vote of the Executive Committee members every two years.

2. The Chairperson of the subcommittee appoints a Secretary and a Deputy Secretary every two years.

3. The Executive Committee has the right to exempt any member of the subcommittee with the approval of the Central Bank, based on a decision made by a majority vote.

4. Any member of the subcommittee is exempted if they leave, are exempted from, or resign from the company they represent.

1. The subcommittee shall hold its meetings at least six times a year, and it may convene if the Chairperson deems it necessary.

2. The subcommittee shall hold meetings at the Financial Institute or at a location determined by the Chairperson in Riyadh or any other place agreed upon by the majority of the members.

3. The charter establishing the committee must include all regulations concerning meetings, including quorum and decision-making procedures.

4. The subcommittee must adhere to the scheduled meetings as planned.

5. The subcommittee may invite any expert to participate in meetings with the Chairperson's approval, but without voting rights.

6. Discussions must be conducted with high professionalism, in an organized manner, and should not include topics not on the agenda.

7. All members of the committee must maintain the confidentiality of the information exchanged during the meeting.

8. The Chairperson must ensure that members adhere to the rules and instructions governing the committee meetings, which all members must follow.

1. Members should inform the Chairperson of any topics they believe will contribute to achieving the objectives of the meetings. The Chairperson should consider these suggested topics when approving the agenda.

2. The agenda should be prepared by the Secretary or their Deputy, and must include all the topics to be discussed in the meeting. It should then be approved by the Chairperson.

3. The Secretary or their Deputy must send the agenda along with the documents to be discussed to all committee members and a copy to the Central Bank representative at least ten working days before the meeting via email.

4. The Secretary must prepare minutes for all meetings, which should at a minimum include the names of attendees, all topics discussed, decisions made, any objections or abstentions with reasons if applicable.

5. The Secretary or their Deputy must send the meeting minutes to all committee members and the Central Bank representative within no more than five working days after the meeting via email, before they are approved and signed by the Chairperson and members. The Secretary should receive comments and feedback within five working days of receiving the minutes.

6. The subcommittee must prepare an annual comprehensive report, accompanied by all necessary documents, to be provided to the Executive Committee and the Central Bank. This report should, at a minimum, include the key decisions of the committee, significant achievements, difficulties encountered, suggestions, as well as the number of meetings held during the period and the names of attendees.

7. The committee should ensure clarity and accuracy in the minutes and reports it prepares.

8. The Secretary must archive all reports, minutes, and documents for easy retrieval. Upon the expiration of their term, the Chairperson should provide all documents to the Central Bank representative through a handover report, allowing the Central Bank representative to transfer the documents to the new Chairperson.

9.The charter establishing the committees will govern any additional documents that the committee deems necessary to include.

Subcommittees

1. Discuss all topics and related issues, and provide recommendations to the Executive Committee for review and final decisions.

2. Carry out all tasks assigned by the Executive Committee and regularly report on the progress of these tasks to the Executive Committee.

3. Subcommittees are responsible for all tasks deemed to fall under their purview by the Executive Committee.

4. Prepare an annual comprehensive report, accompanied by all necessary documents, to be provided to the Executive Committee and the Central Bank. This report should include at a minimum the key decisions made by the subcommittee, major achievements, difficulties encountered, suggestions, the number of meetings held during the period, and the names of attendees.

Chairperson

5. Ensure the effectiveness and success of the subcommittee; it is also their responsibility to continuously monitor all tasks assigned to the subcommittee.

6. Manage discussions and debates during meetings, and create a conducive environment that facilitates professional and efficient exchange of opinions and viewpoints.

7. Communicate with the Executive Committee and follow up on tasks with them, and provide them with all recommendations, reports, and other relevant information.

8. Hand over all documents to the Central Bank representative through a handover report upon the expiration of their term, so that the Central Bank representative can then transfer the documents to the new Chairperson.

Vice-Chairperson

9. In the absence, departure, or early exemption of the Chairperson, the Vice-Chairperson will assume their responsibilities and duties.

Secretary

10. Prepare all arrangements for meetings, including the meeting location.

11. Prepare the agenda, ensuring it includes all topics to be discussed in the meeting, and obtain approval from the Chairperson.

12. Send the agenda along with the documents to be discussed to all committee members and a copy to the Central Bank representative at least ten working days before the meeting via email.

13. Prepare minutes for all meetings, which should at a minimum include the names of attendees, all topics discussed, decisions made, any objections or abstentions with reasons if applicable.

14 .Send the meeting minutes to all committee members and the Central Bank representative within no more than five working days after the meeting via email, before they are approved and signed by the Chairperson and members. The Secretary should receive feedback within five working days of receiving the minutes.

15. Archive all reports, minutes, and documents for easy retrieval.

Deputy Secretary

16. In the absence, departure, or early exemption of the Secretary, the Deputy Secretary will assume their responsibilities and duties.

To read the “Rules Governing Calculation of Annual Percentage Rate (APR)”, click here.

To read the "Debt Collection Regulations and Procedures for Individual Customers", click here.

To read the Disclosure of Interest Rates on Financing and Savings Products, click here.

To read the "Deposit Taking Finance Companies (DTFCs) Regulations", click here.

To read the "Instructions on Periods of Issuing the Clearance Letter and Executing Requests for Account Transfer and Debt Transfer", click here.

To read the "Guidelines for Financing Entities' Handling of Promissory Notes", click here. .

In accordance with Article (5) of the Implementing Regulations of the Finance Companies Control Law as amended by the Decision of SAMA Governor No. (79/MFC) dated 08/12/1440H and in order to protect the consumers of financial institutions and maintain the soundness of the financial system and fairness of transactions, SAMA issued the Controls for the Finance of a Natural or Legal Person regarding the Goods of their Institution or Services to their Consumers.

I. The natural or legal person (merchant) shall finance the goods of their institution or services to their consumers through the finance institutions licensed by SAMA. The finance institutions shall comply with the following:

1. Verify that the merchant is licensed to perform his business in accordance with the applicable laws, provided that he is an owner or able to own what he seeks to finance.
2. The merchant must not reacquire the good sold to the consumer.

II. Real estate finance shall be limited to finance institutions licensed to directly provide real estate financing.

III. Finance institutions may outsource their services or a part thereof to the merchant or any other party in accordance with the Rules on Outsourcing issued by SAMA in this regard.

IV. A person who violates the provisions of paragraphs (I) and (II) of these Controls shall be deemed in violation of the Finance Companies Control Law.

V. SAMA and other relevant entities shall continuously cooperate and coordinate with regard to detecting violators of the provisions of paragraph (I) of these Controls.

VI. These Controls shall enter into force on the date of their approval.

1. Without prejudice to the provisions of Article Sixteen of the Implementing Regulation of the Finance Lease Law, the appointment of the head of the Contracts Register and the registrars shall be made after obtaining a letter of no objection from SAMA.
    
2.  The head of the Contracts Register and the registrars are directly linked to the Chief Executive Officer of the Contracts Registration Company or their designee.
    
3.  SAMA has the authority to remove the head of the Contracts Register and the registrars from their positions by a reasoned decision in the event of failure to fulfill their statutory or professional duties.
    
4.  If the registrar of the Contract Register refuses to draft or authenticate any document, the concerned parties have the right to appeal this decision to the company and then to the Central Bank. If the appeal is rejected, they are entitled to take the matter to the competent court.

1. The Head of the Contracts Register is responsible for the registration activities in the registry. They receive entries and any amendments thereto, refer them to one of the contract registrar of the Contracts Registry, and carry out the registration in accordance with the Finance Lease Law, its Implementing Regulation, and this decision.
    
2.   The head of the Contracts Register and the registrars, each within their area of power, are responsible for the accuracy and correctness of the registration of all financial leasing contracts and the content of the data and documents submitted, unless the error is due to an external party. The affected party has the right to appeal to the relevant authorities if it is proven that they have failed to verify the accuracy of the data or to register it in accordance with the prescribed procedures.
    
3.  The Head of the Contract Register shall be directly responsible for the records and registers for a minimum period of ten years from the date of the expiration of the obligations arising from the contract.
    
4. The registrar is provided with an official seal to stamp the transactions they handle. Electronic means may also be used for this purpose, as deemed appropriate.

The head of the Contracts Register and the registrars must adhere to the following obligations:

1. They are to perform their duties at their place of work, and they may also carry out their duties at the lessor's premises, with the lessor bearing the associated costs.
    
2. Verify the identity of the contracting parties or their representatives based on official documents issued by the competent authority for identity verification.
    
3. Verify the eligibility of the contracting parties or their representatives, and their qualifications to enter into contracts.
    
4. Verify the accuracy of the documents and decisions issued in the Arabic language, and it is permissible to authenticate those issued in a foreign language after being translated into Arabic by an approved translator. The authentication should be done by both the original and translated versions together.
    
5. Hold all contract registers necessary to record transactions and classify them according to what is determined by SAMA.
    
6. The preservation and organization of the records in the Contracts Register must be in a secured location to protect them from any tampering or factors that may affect their integrity, and this should be done in designated areas.
    
7. Stamping the document of ownership of the asset and the contract with the registration number, or taking the necessary measures regarding documents that cannot be stamped, such as real estate ownership deeds, the use of electronic means for the authentication of documents is permitted.
    
8. Adhere to the Finance Lease Law and its Implementing Regulations, and to any instructions issued by SAMA or the relevant authorities in this matter.

This decision is effective from the date of its issuance.