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Consumer Protection and Financial Conduct

Financial Consumer Protection Principles and Rules
No: 44006639 Date(g): 23/8/2022 | Date(h): 26/1/1444 Status: In-Force
Based on the Saudi Central Bank Law issued under Royal Decree No. (M/36) dated 11/04/1442H, and with reference to the SAMA's Circular No. (341000095960) dated 03/08/1434H, which included the Banking Consumer Protection Principles, Circular No. (351000109203) dated 21/08/1435H, which included the Consumers Protection Principles for Insurance Companies, and Circular No. (361000110320) dated 14/08/1436H, which included the Finance Consumer Protection Principles, and in line with SAMA’s commitment to ensuring that customers of financial institutions under its supervision receive fair treatment through the development of policies and instructions related to consumer protection.
Attached are the updated Financial Consumer Protection Principles and Rules. SAMA emphasizes the strict compliance of financial institutions with these principles and rules. Please note that these principles and rules replace the previously issued customer protection principles by SAMA.
For your information and action accordingly as of the date hereof.

Section 1: Introduction, Purpose and Definitions

Introduction
SAMA is the authority responsible for monitoring and supervising the financial institutions licensed by it. SAMA has regulatory powers, including framing and regulating the rights of financial institutions’ costumers, based on the SAMA Law issued by Royal Decree No. M/36 dated 11/04/1442H and its amendments as well as Article (4) of the Law which states that “SAMA shall carry out its duties according to the provisions of the Law, the regulations and policies issued by the Board, and in line with international best standards and practices. The Bank shall have all powers necessary to be able to achieve its objectives and carry out its duties. To this end, SAMA may exercise the following duties, powers and responsibilities: (9) developing instructions and procedures that would protect the consumers of financial institutions.” This is also based on the Banking Control Law issued by Royal Decree M/5 dated 22/02/1386H and its amendments, granting SAMA the authority to determine the procedures and conditions that banks must follow when dealing with consumers, in addition to the provisions in the Cooperative Insurance Companies Control Law issued Royal Decree No. M/32 dated 02/06/1424H and its amendments regarding SAMA’s powers to set the rules and controls that guarantee the rights of beneficiaries. The Finance Companies Control Law issued by Royal Decree No. M/51 dated 13/08/1433H and its amendments and regulations include the necessary rules to protect transactions, ensure their fairness, and protect the rights of consumers. Moreover, the Credit Information Law issued under Royal Decree No. M/37 dated 05/07/1429H and its regulations are aimed at regulating consumer rights in the credit information sector, and one of the goals of the Law of Payments and Payment Services issued by Royal Decree M/26 dated 22/03/1443H is to enhance the protection of the rights of parties dealing with payment systems and payment service providers.

Purpose

1.	To establish the principle of financial consumer protection and keep abreast of the instructions issued internationally, namely the High-Level Principles on Financial Consumer Protection.
2.	To ensure that consumers of financial institutions supervised by SAMA are treated with transparency, honesty and fairness.
3.	To ensure that consumers can easily obtain financial services and products at reasonable costs and with high quality.

Definitions

The following terms and phrases, wherever mentioned in this document, shall have the meanings assigned to them unless the context otherwise requires:

Saudi Arabia	The Kingdom of Saudi Arabia.
SAMA	The Saudi Central Bank*.
Financial institution	An entity supervised and regulated by SAMA according to the applicable laws.
Bank	Any natural or juristic person that is basically practicing any of the banking business in Saudi Arabia and is licensed according to the provisions of the Banking Control Law.
Finance company	A joint stock company licensed to engage in finance activities according to the Finance Companies Control Law.
Insurance company	A joint stock company conducting insurance and/or reinsurance activities according to the Insurance Companies Control Law.
Payments institutions	Payment service providers licensed by SAMA according to the Law of Payments and Payment Services.
Remittance service providers	Financial institutions providing remittance services under the license issued by SAMA.
Credit and charge card issuers	Financial institutions licensed to issue credit and charge cards in Saudi Arabia.
Credit bureaus	Companies licensed to collect and maintain credit information on consumers and provide the same to members upon request according to the Credit Information Law.
Credit record	A report issued by a credit bureau containing consumer credit information.
Conflict of interest	A situation in which the objectivity and independence of a financial institution or any of its employees is adversely affected during the performance of tasks in pursuit of its own interests or the interests of any of its employees, in a manner that violates justice, fairness, integrity and responsibility to consumers.
Consumer	A natural person who is a beneficiary of products and services provided by licensed financial institutions.
Complaint	Any expression, written or verbal, entailing dissatisfaction with the provided services, whether such dissatisfaction is justified or not.
Complaint resolution	When a financial institution reaches a final outcome regarding the consumer's complaint by following the measures and procedures necessary to settle the complaint fairly and effectively within the specified time period.
Inquiries	A consumer’s inquiries about products and services provided by a financial institution.
Requests	A consumer’s request to obtain products or services provided by a financial institution.
Clearance letter	An official statement issued by the financial institution confirming that the consumer has no financial liabilities related to a product or a service previously obtained by the consumer.
Employees	Individuals responsible for providing services and products offered by the financial institution, including all employees, whether directly contracted or outsourced.
Error	An act violating the documented policy and work procedures, which has a financial effect and/or a breach of the statutory or regulatory rights of one or more consumers.
Outsourcing	An arrangement with a third party that the financial institution contracts with to provide a service on its behalf.
Documented channels	A recorded and verifiable contact method that can be retrieved in written or electronic format.
Day	Any calendar day including weekends and holidays.
Business day	Any calendar day excluding weekends and holidays.
Third party	An entity that is assigned an activity to perform on behalf of the financial institution.

* The Saudi Arabian Monetary Agency was replaced by the name of Saudi Central Bank in accordance with The Saudi Central Bank Law No. (M/36), dated 11/04/1442H, corresponding 26/11/2020AD.

Section 2: Consumer Protection Principles
These Principles form the general framework for protecting consumers of financial institutions and must be observed by financial institutions in all their dealings with consumers. Such principles are as follows:

Principle 1: Equitable and Fair Treatment
The financial institution must treat consumers equitably, honestly and fairly at all stages of their relationship to the point that it becomes an integral part of the financial institution’s culture. Moreover, due care must be exercised and special attention must be given to low-income and less educated people, older people and those with special needs of both sexes.

Principle 2: Disclosure and Transparency
The financial institution must ensure that the information about products and services provided to consumers is clear and comprehensible and that it is updated, clear, concise, accurate, not misleading, and easy to access especially the key terms and features. This information must include a description of the rights and responsibilities of each party and details of prices and commissions charged by the financial institution, taxes, exceptions, fines, types of major risks and benefits, and the mechanism and consequences of terminating the relationship. Furthermore, the financial institution must provide information about the alternative products and services it offers.

Principle 3: Education and Awareness
The financial institution must develop appropriate programs and mechanisms to improve the knowledge and skills of consumers, raise their level of awareness, enable them to understand major risks, and help them to make informed and effective decisions as well as help them know the concerned entity to obtain information if needed.

Principle 4: Behavior and Work Ethic
The financial institution must work in a highly professional manner for the benefit of consumers during their relationship, where a financial institution is primarily responsible for the protection of the financial interests of the consumer. The financial institution must also provide the necessary human resources to achieve the above, perform its business operations, and serve its consumers in all regions of Saudi Arabia where it is located. Additionally, the financial institution must provide appropriate centers and documented communication channels to serve these consumers.

Principle 5: Protection Against Fraud and Misuse
The financial institution must protect costumers’ assets against fraud and put in place technical and control systems that are highly efficient and effective to limit and detect fraud, embezzlement or misuse and take the necessary action if any incident occurs, in accordance with the relevant regulations and instructions.

Principle 6: Protection of Data and Information Privacy
The financial institution must develop appropriate mechanisms according to the relevant applicable regulations, instructions and policies to protect the privacy of consumers’ financial, credit, insurance and/or personal information, provided that these mechanisms include all rights mentioned in the Personal Data Protection Law. The financial institution must also establish high-level control systems that include appropriate mechanisms specifying the purposes for which data is collected.

Principle 7: Complaints Handling
The financial institution must have an appropriate mechanism in place for consumers to submit their complaints, and the mechanism must be clear and effective. In addition, the financial institution must consider each complaint, take the measures and procedures necessary to fairly and effectively resolve the complaint, and provide the best and most appropriate solutions without delay in accordance with the relevant regulations and instructions.
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Principle 8: Competition
The financial institution must enable consumers to easily search and compare the best services and products and their providers. It must also provide the best products, services, and prices to meet consumers’ needs and desires, promote innovation, and maintain the quality of services and products.

Principle 9: Outsourcing
When outsourcing services that involve dealing with consumers, the financial institution must ensure that outsourced service providers comply with the requirements of these Principles and Rules (where applicable), serve the interests of consumers, and bear the responsibility for protecting them. Financial institutions are not exempted from responsibility if the outsourced service provider fails to comply with applicable laws, regulations and instructions in any of the assigned operations or tasks as stipulated in the relevant instructions issued by SAMA.

Principle 10: Conflict of Interest
The financial institution must establish a written policy on conflict of interests. It must also ensure the existence and implementation of the policies that help in identifying transactions that are likely to be a source of conflict of interest. If a conflict of interest is likely to occur between the finance institution and any other party, the finance institution must inform the responsible authority of these cases.

Section 3: General Conduct Rules

Rule 1: The financial institution must encourage consumers to read the contracts and their annexes, the initial disclosure form, the terms and conditions, and any documents that require the consumer’s approval or signature. Moreover, the financial institution must verify consumers' knowledge of the content of these documents and provide the updated terms and conditions through its electronic channels.
Rule 2: The financial institution must provide information and/or documents to consumers clearly and accurately, and it must avoid misinformation, fraud and deception.
Rule 3: The financial institution must include all terms and conditions in the product or service application form, provided that the warning statements include the potential risks if the product or service is used in a way other than agreed upon. These terms and conditions must be drafted in Arabic in a simple, clear and direct language. An English copy must be provided upon the consumer’s request.
Rule 4: Without prejudice to Rule (8) of this section, the financial institution must inform the consumer, through a text message to the mobile phone number registered with the financial institution and the other documented channels, of any change in the terms and conditions (if the agreement and relevant instructions allow this change) at least 30 days before the change comes into effect. In addition, the financial institution must enable the consumer to object in the event of their non-consent to the notification received through one of the documented channels.
Rule 5: When concluding the contract or agreement, the financial institution must provide the consumer with an initial disclosure form that has an easy, clear and simple language, containing information on products and services, details of calculating fees and commissions, and the term cost (if any). The financial institution must also obtain an acknowledgment from the consumer that they have read and understood such information and agree to its content.
Rule 6: The financial institution must standardize the font size used (14 as a minimum) and ensure that it is clear and readable in contracts and annexes, which include initial disclosure forms, terms and conditions, documents, exceptions, and any other document requiring the consumer’s review or signature. In addition, the financial institution must not request the consumer's signature (of any type) on any empty or incomplete document, and it must protect and maintain consumers' documents and signatures.
Rule 7: The financial institution must provide the consumer with all documents related to the products or services in paper or electronic format - according to the consumer's preference - immediately upon obtaining them. If provided in paper format, the financial institution must obtain an acknowledgment of receipt from the consumer. Such documents include the contract and its annexes, insurance documents, terms and conditions, schedule of fees and commissions.
Rule 8: The financial institution must not raise the amount of fees and commissions to be paid by a consumer after obtaining the service or product and signing the contract/agreement or the like. An exception is the fees and commissions related to a third party, provided that they are associated with the consumer’s benefit from the financed asset, and the consumer must be notified of this when signing the contract.
Rule 9: The financial institution must set a list of fees and commissions (including third party fees) in a visible place in the head office and branches and publish it on the websites.
Rule 10: When a consumers applies for a service or product, the financial institution must:
	a.	Send a text message to the consumer (immediately after submitting the application) containing, as a minimum: the application subject, the reference number, expected implementation date, and toll-free number for inquiries.
	b.	Notify the consumer of the acceptance or rejection of the application via a text message, within a maximum of (3) working days. If the application is rejected, the notification must include the reason for this rejection in addition to the mechanism of objection to it.
	c.	As an exception from Paragraph (b), notification of insurance claims must be in writing, and its period is determined according to the periods specified in the relevant instructions. This notification must include, at a minimum, the following:
		-	If the claim is totally or partially accepted: the settlement amount, clarification of how the settlement amount was calculated, justification for the amount reduction or the partial acceptance of the claim.
		-	If the claim is rejected: the reason for rejection, documents supporting the rejection decision if requested by the consumer.
Rule 11: The financial institution is responsible for protecting consumer information and maintaining its confidentiality, whether the information is maintained by the institution or by a third party. Moreover, the financial institution must:
	a.	Provide a secure and confidential environment in all its channels to ensure the confidentiality of consumer information when executing transactions, establish appropriate work procedures and effective control systems for protecting consumer information, and detect and address any current or expected infringements.
	b.	Ensure that all permanent and temporary employees as well as employees of the third party, whether they are on the job or after leaving their posts, sign the consumer information confidentiality form, ensure not to disclose personal information, and limit access to such information to authorized persons only.
	c.	Maintain the confidentiality of consumer information in accordance with the relevant laws and instructions.
Rule 12: The financial institution must ensure that all electronic channels are available and secure. In the event that consumers experience direct loss as a result of penetration of these channels and/or weak security, these consumers must be compensated for the losses. In addition, the financial institution must:
	a.	Adopt a number of identity authentication methods for accessing electronic services and take the necessary measures to reduce electronic fraud.
	b.	Mention the purpose of any text message containing a one-time password (OTP) to consumers by stating, for example, that it is for identification of a beneficiary, password reset, access to account, or money transfer.
Rule 13: The financial institution must ensure that its systems and services are continuous and ready to meet the needs of consumers at all times. Additionally, it must not benefit from any refunds that may arise due to a technical error or malfunction; such refunds must be returned to each affected consumer without delay and within (5) working days without waiting for claims. Moreover, the institution must repair the malfunction according to the requirements of business continuity, communicate with the affected consumers to inform them of the error and the corrective measures taken through any of the documented channels, and announce the same through all available channels.
Rule 14: The financial institution must ensure that all employees perform their duties efficiently and effectively and that they follow codes of conduct and ethics with high professionalism when serving current or potential consumers at all times. It must also train front-line employees who deal directly with consumers on a regular basis and ensure that they obtain the necessary professional certificates to be familiar with the skills of dealing with consumers, the products and services provided to consumers, and the relevant instructions issued by SAMA.
Rule 15: Without prejudice to the relevant instructions, the financial institution must monitor the performance of front-line employees through (periodic/confidential) visits to the branches, call center, and collection staff (including third party employees) to ensure that they follow the best practices when dealing with consumers and that they are familiar with the instructions issued by SAMA as well as the products and services provided by the institution. In addition, semi-annual reports must be submitted to the senior management to monitor the performance of employees.
Rule 16: The financial institution must continue to educate consumers, through all of its channels, about topics including, as a minimum: products and services and their risks, handling of debt and default, fraud, dealing with unlicensed companies or financial or investment institutions, savings, financial education and planning.
Rule 17: The financial institution must provide multiple channels dedicated to receiving complaints, inquiries and requests and enable consumers to submit complaints easily and timely according to their preference, in line with the nature of the financial institution. These channels must include at a minimum: the toll-free number, branches and/or website, smart phone applications, email.
Rule 18: The financial institution must display the complaint handling mechanism in a visible place in the head office and branches and publish it on the websites and smart phone applications.
Rule 19: The mechanism for handling complaints and inquiries must include the following:
	a.	Procedures for submitting a complaint and/or inquiry.
	b.	Documenting receipt of the complaint and/or inquiry and providing the consumer with the main reference number and the specified complaint-handling period via a text message to the mobile phone number registered with the financial institution.
	c.	Providing the consumer with contact information of the department concerned with handling complaints and/or inquiries in case the consumer needs to communicate with the financial institution to follow up on the complaint and/or inquiry.
	d.	Documenting the channel used to communicate with the consumer and maintain its records for a minimum of five years.
	e.	Handling complaints and/or inquiries sent directly to the financial institution in accordance with the instructions issued by SAMA.
	f.	Providing the consumer with the results of complaint handling and/or answers to the inquiries in detail with documents that confirms correct handling through one of the documented channels, in addition to responding to their inquiries clearly and with high quality.
	g.	If a consumer is not satisfied with the result of the complaint handling and wants to escalate, the consumer should be provided with the escalation mechanism to a higher level within the financial institution or be directed to the competent authority, as preferred.
Rule 20: The financial institution must develop performance indicators to measure the handling of directly-filed complaints, including (measuring customer satisfaction, measuring complaint handling quality). The results must be reported quarterly to the highest executive position in the financial institution.
Rule 21: The financial institution must provide, within (5) working days, the following documents at the request of the consumer:
	a.	A copy of the original forms for any service or product.
	b.	A copy of the updated terms and conditions of the product or service.
	c.	A copy of the contracts concluded with the consumer, including the documents of collaterals and guarantees.
	d.	A copy of the insurance policy, if any.
Rule 22: The financial institution must provide a toll-free number for consumers to call from inside Saudi Arabia via landline and mobile phones, in addition to a phone number for calling from outside Saudi Arabia (for banks and insurance companies) to submit complaints and inquiries. The toll-free number must be clearly displayed on the home page of the financial institution’s website in addition to all other channels.
Rule 23: The financial institution must take into account the humanitarian cases and its social responsibility when dealing with consumers who have emergency financial difficulties and find suitable solutions before starting to take the legal actions against them.
Rule 24: The financial institution, along with its personnel, must not treat current and future consumers differently in a biased or unfair manner in their various dealings based on their race, gender, religion, color, age, disability, martial status or any other forms of discrimination.
Rule 25: The financial institution must publish the Financial Consumer Protection Principles and Rules on its website in a visible place.
Rule 26: The financial institution must display the branch working hours at the branch’s main entrance and on the website, in addition to the working hours for phone services.

Section 4: Specific Conduct Rules

Rule 1: Fees, commissions and administrative service charges to be received by the bank or finance company from the consumer must not exceed the amount equivalent to (1%) of the financing amount or SAR 5,000, whichever is less. These fees, commissions and administrative service charges may not be deducted before signing the contract, with the exception of real estate valuation fees, which may be deducted after the consumer obtains the initial approval for real estate financing.
Rule 2: Without prejudice to Rule (1) of this section, the bank or finance company must , when granting real estate financing, take an acknowledgement from the consumer (before starting the contracting procedures) that states the bank’s right not to refund the real estate valuation fees if that the procedures are not completed for a reason related to the consumer. However, real estate valuation fee must be refunded in the following cases:
	-	Failure to grant the financing for a reason not related to the consumer.
	-	If the consumer cancelled the request before the real estate valuation.
Rule 3: The bank and the finance company must issue and provide the consumer with a letter of clearance through one of the documented channels immediately after the payment of the debt dues or the agreed settlement amount without a request from the consumer, except for cases in which judicial decisions are issued.
Rule 4: The bank or finance company must inform the consumer through documented channels of the consequences on their credit record with credit information companies when a settlement is reached with the bank or finance company to drop the remaining unpaid amounts of the total loan.
Rule 5: The bank or the finance company must provide the consumer, upon their request, with a detailed amortization schedule free of charge within one business day that includes all fees, term cost and other costs, including any additional costs, for one time in the event of defaulting or for early payment.
Rule 6: Banks, payment companies, and credit and charge card issuers must ensure that the merchant customers do not pass and/or impose any additional charges on credit, charge, or debit card holders when paying at points of sale and e-commerce websites or making transactions carried out through payment service providers. Banks, payment companies, and credit and charge card issuers are also responsible for monitoring merchants’ deposits to ensure that they are proportionate to the nature of business. In addition, they are responsible for providing training to store staff on the use of POSs, while providing them with the required operational guidelines.
Rule 7: Banks, payment companies, and credit and charge card issuers must include in the agreement concluded with their merchant customers that the merchant must not charge additional fees on the cost of products or services if consumers use credit, debit and prepaid cards or payment service providers to pay at points of sale and e-commerce websites.
Rule 8: Banks, payment companies and credit and charge card issuers must notify consumers immediately of debit or credit or debit transactions in their accounts through SMS messages in accordance with the relevant instructions.
Rule 9: Banks and payment companies must set the maximum limit for the following: Transfers, daily withdrawals, POS transactions, online purchases and Sadad transactions. Moreover, banks and payment companies must notify customers of such limit when they receive the service and they must review the limit annually as a minimum.
Rule 10: Banks and credit and charge card issuers must provide a 24/7 toll-free number that allows consumers to call from inside Saudi Arabia via landline and mobile phones, in addition to a number for calling from outside Saudi Arabia, provided that it offers the following services, as a minimum:
	a.	Reporting lost or stolen debit or credit cards.
	b.	Reporting fraud, suspicious unauthorized transactions or unauthorized access to their data or accounts.
	c.	Objecting to credit card transactions.
Rule 11: Banks must provide a new debit card to the consumer free of charge upon their request through a trusted channel or at the request of a legally authorized person. The debit card must be reissued at least (30) days before the expiry date, unless the consumer requests otherwise. In addition, banks must ensure that the card has been issued and delivered to the consumer or the legally authorized person with a mechanism in place to verify the identity of the consumer.
Rule 12: Banks must verify that all ATMs, POS and other online services meet the needs of consumers and facilitate the completion of transactions according to the latest methods. The banks must comply with the following:
	a.	Performing periodic maintenance of all ATMs and check their readiness and status at all times.
	b.	Using modern and advanced technologies to remotely monitor the performance of ATMs.
	c.	Circulating fit banknotes and replacing and withdrawing damaged banknotes from circulation at all times.
Rule 13: Banks must properly process claims related to incorrect and incomplete transactions made through mada cards in all services (ATMs, POS, e-commerce transactions) within two working days from the date of the transaction.
Rule 14: Credit and charge card issuers must comply with the following:
	a.	Issuing a credit or charge card based on a request submitted by the consumer through the documented channels.
	b.	Informing consumers of the cash withdrawal limit and fees on withdrawals from technical machines and systems such as ATMs for credit and charge cards.
	c.	Not to charge the annual fees for credit or charge cards until they are activated by the consumer. The card issuer may cancel the card if it is not activated within 90 days from the date of issuance.

Section 5: Concluding Provisions

•	These Principles and Rules set the minimum customer due diligence obligations to be met by financial institutions, as they must continuously work on developing their own internal procedures, in line with the nature and size of their business and in accordance with the best relevant local and international standards and practices.
•	SAMA may follow up on the application of these Principles and Rules and take any necessary actions as it deems appropriate against the violations detected, including imposing penalties or fines or requesting corrective actions.
•	All provisions of these Principles and Rules shall enter into force from the date of their approval by the authorized person.
•	These Principles and Rules shall replace the Consumer Protection Principles previously issued by SAMA.
•	These Principles and Rules shall supersede any provisions to the contrary

Instructions for Services Provided to Persons with Disabilities in Financial Institutions
No: 41039051 Date(g): 28/1/2020 | Date(h): 3/6/1441 Status: In-Force
Translated Document
Based on the powers vested to SAMA under its law issued by Royal Decree No. (23) dated 23/05/1377H, and the Banking Control Law issued by Royal Decree No. (M/5) dated 22/06/1386H, the supervisory and regulatory role of SAMA over the financial institutions subject to its supervision, and its efforts aimed at enhancing the humanitarian role of financial institutions towards their customers who are persons with disabilities by working to facilitate and ease the provision of financial services to this esteemed segment of society.
Facilities for instructions on services provided to persons with disabilities in financial institutions aimed at enhancing the humanitarian role of financial institutions operating in KSA and encouraging the development of financial services provided to their customers with disabilities.
For information, and to act accordingly within three months from its date, while providing SAMA with a plan to comply with these instructions within one month from its date.

I. Introduction

A. Purpose
The instructions for services provided to persons with disabilities in financial institutions aim to establish fairness among all segments of society without discrimination or diminishing the rights of any segment in any way. The instructions seek to promote financial inclusion, ensure access to financial products and services for all segments of society, remove all physical and behavioral barriers that hinder access of People with Disabilities to financial services to manage their financial affairs independently and in complete privacy, and protect the rights of People with Disabilities as consumers of financial services

B. Scope
The Instructions apply to all Financial Institutions regulated and supervised by SAMA.

II. Definitions

1.	People with Disabilities: all persons who have long-term physical, mental, intellectual or sensory impairments which hinder their full and effective participation in society on an equal basis with others.
2.	Disability: having one or more of the following: visual impairment, hearing impairment, intellectual disability, physical and mobility disability, learning disabilities, speech and language impairment, behavioral and emotional disorders, multiple disabilities, autism, and other disabilities that require special care.
3.	Financial Institution: banks, branches of foreign banks, insurance and/or reinsurance companies, branches of foreign insurance and/or reinsurance companies, service providers, finance companies, finance lease registration companies, credit bureaus, payment companies, and money changers operating in Saudi Arabia and supervised by SAMA.
4.	Accessibility: taking appropriate measures to ensure that facilities and services are accessible to People with Disabilities on an equal basis with others.

III. Instructions on Services Provided for People with Disabilities

1. Unit for People with Disabilities
The Financial Institution shall establish an administrative unit to be concerned with People with Disabilities. The unit is responsible for ensuring that the approved policies and procedures of the Financial Institution meet the requirements and needs of People with Disabilities and that financial services are easily provided for them.

2. Built Environment

The Financial Institution shall provide an appropriate built environment for People with Disabilities in all of its premises and branches. Such environment shall ensure the Accessibility to buildings and facilities for People with Disabilities and shall enable them to benefit from the services provided without any difficulties or complications. It includes:
	Providing wheelchair ramps to facilitate access to buildings and use of its various facilities, in addition to accessible emergency exists and evacuation routes suitable for People with Disabilities.
	Allocating parking spaces designated to receive People with Disabilities.
	Providing self-service kiosks for People with Disabilities that are equipped with the necessary tools and at a height that facilitate their use.
	Ensuring that offices are equipped with the tools necessary to serve People with Disabilities.
	Ensuring that services and products offered by the Financial Institution are explained using various means suitable for People with Disabilities.
	The Financial Institution may use mobile services, if possible, to reach people with severe disabilities if necessary.

3. Verification of Disability
The Financial Institution may use all available methods to verify the existence of a Disability, such as reviewing the approved medical reports or the supporting documents that prove the type and degree of Disability or examining the case, provided that such verification takes place only once.

4. Products and Services

The Financial Institution shall establish a policy and procedures to ensure that People with Disabilities are treated on an equal basis with others and enjoy equal and fair access to financial products and services to manage their financial affairs.
The Financial Institution shall:
a.	Provide the agreements and contracts in a format accessible to People with Disabilities according to the type of Disability, for example, printing documents in Braille format for people with visual impairment.
b.	Assign an employee to be responsible for reading the main terms and conditions of agreements and contracts concluded with People with Disabilities, such as blind and visually impaired people.
c.	Assign an employee to be responsible for assisting People with Disabilities in filling out the forms, requests, and contracts, if asked.

5. Self-Service Kiosks and Electronic Services

The Financial Institution shall provide access to electronic services and self-services for People with Disabilities as follows:
a.	Provide self-service kiosks equipped with compatible tools for the use of People with Disabilities, and announce the availability of these devices in the available ways.
b.	Develop electronic services to be accessible to People with Disabilities, for example, provision of awareness materials for blind or visually impaired people.

6. Transparent and Fair Treatment for People with Disabilities

First: Advertising and Marketing:
	a.	The Financial Institution shall update its marketing policies to include People with Disabilities to ensure they benefit from the products and services provided.
	b.	The Financial Institution shall provide explanations suitable for People with Disabilities about the products and services provided.
Second: Commitment to Fair and Equal Treatment of People with Disabilities
	a.	The Financial Institution shall not exclude or restrict the right of access to any financial service for People with Disabilities for any reason and under any excuse on the basis of or because of the Disability, without legal basis supporting such exclusion or restriction.
	b.	The Financial Institution shall not use abusive or unfair practices and shall treat People with Disabilities with respect and fairness without discrimination.

7. Financial Education and Awareness Provided for People with Disabilities
The Financial Institution shall develop appropriate programs and mechanisms to improve the knowledge and skills of People with Disabilities, raise their level of awareness, enhance their understanding of the risks associated with financial products and services, assist them in taking informed and effective decisions, and refer them to concerned entities to obtain the information they need.

8. General Provisions

The Financial Institution shall:
	a.	Review and improve established business policies and procedures to fulfill the requirements and needs of People with Disabilities.
	b.	Prepare a guide that sets out the mechanism for providing financial services to People with Disabilities, and train and qualify specialized staff to effectively provide services in an easy and accessible manner.
	c.	Give high priority and care to People with Disabilities to facilitate their visits to the Financial Institution and ensure fast service.
	d.	SAMA is responsible for ensuring the implementation of these Instructions. In the event of non-compliance, the Financial Institution shall be penalized in accordance with the relevant laws and regulations.

Principles of Conduct and Work Ethics in Financial Institutions
No: 722030000067 Date(g): 5/8/2019 | Date(h): 4/12/1440 Status: In-Force
Translated Document
The principles of conduct and business ethics in financial institutions contained in this document aim to ensure that the performance of the employees of the financial institution within the framework of a system of values and ethical principles and in a manner that enhances job discipline, integrity, transparency, objectivity, efficiency, loyalty and effectiveness in the behavior of the employees of the financial institution during the performance of their duties and job duties.
Establishing these behavioral and ethical principles will achieve the vision and mission of the financial institution. Protect its reputation and ensure that its employees comply with the principles of prudent conduct. Achieving the concept of good governance, enhancing the job performance and professional behavior of its employees, rewarding the diligent, holding the negligent accountable, and improving the image of the financial institution in general.
Therefore, these principles must be transformed into behavior and practices that are applied by the employees of the financial institution, and continuous awareness through all possible means of communication by the financial institution. It should be a reference tool that lays down the basic rules that guide them on how to deal with each other when performing their job duties and the qualities they should have.

I. Introduction

A. Purpose
The purpose of the Principles of Conduct and Work Ethics in Financial Institutions is to enhance the ethical values and principles in the Financial Institutions and promote discipline, integrity, transparency, objectivity, efficiency and loyalty in employees when performing their duties and tasks.
Promoting ethical principles will help achieving the vision and mission of the Financial Institution, protecting its reputation, ensuring staff compliance with the principles of prudent behavior, achieving the concept of good governance, enhancing staff performance and professional behavior, dealing with good and poor performance of employees, and improving the image of the Financial Institution in general.
Such principles should be transformed into behavior and practices applied by the Financial Institution Staff by continuously promoting their application through all possible means by the institution. They shall be the reference tool that sets out the basic rules that define the professional behavior and characteristics employees should show and have at work.

B. Scope and Application
The principles shall apply to all the employees of the Financial Institution, provided that the board of directors of the institution shall adopt a policy of Conduct and Work Ethics in accordance with the principles, relevant laws and instructions issued by competent authorities.
The principles define the minimum ethical conduct. In addition, it shall be the responsibility of all mangers within the Financial Institution to ensure that these principles are read, signed and enclosed in the employee file with the competent department. Managers shall also be responsible for determining the need to issue more detailed instructions and procedures within their departments to enhance compliance with these principles. The Financial Institution shall adequately explain the principles to the staff when joining the institution.

II. Definitions

a.	Work Ethics: Ethical standards, rules and behavior that an employee has to comply with and show toward his/her work, colleagues and the society as a whole.
b.	Financial Institution: Banks, branches of foreign banks, insurance/reinsurance companies, foreign insurance companies, service providers, finance companies, financial lease registration companies and credit information companies, money exchange companies and institutions operating in Saudi Arabia and supervised by SAMA.*
c.	Financial Institution Staff: Members of the board and its committees, executives, regular or contract employees, consultants and third party employees.
d.	Stakeholders: Any person with an interest in the Financial Institution, such as shareholders, creditors, customers, suppliers and any third party.
e.	Professional Behavior: Carrying out job duties with honesty, objectivity and integrity and working continuously to achieve the objectives of the Financial Institution. It also means that practices conducted by employees shall be within their entrusted powers. Employees shall perform their duties in a manner that is free from negligence, and shall not violate laws and instructions, jeopardize the public interest or seek to achieve personal interest.
f.	Insider Information: Any information, data, figures or statistics, whether verbal, written or electronic, obtained or accessed by any of the Financial Institution Staff by virtue of his/her work nature or because of being an employee at the Financial Institution and which is/are not available to the public.
g.	Confidential Information, Data or Documents: Any information or documents that is/are not available to the public, including those related to the Financial Institution's work, administrative and financial arrangements or financial position.
h.	Conflicts of Interest: A situation in which the objectivity and independence of any of the Financial Institution Staff are adversely affected when performing his/her tasks by a personal, actual or potential, material or non-material interest that may relate to him/her personally or to one of his/her personal relationships. This situation also includes when the employee's performance is negatively influenced, directly or indirectly, by his/her personal considerations or after obtaining information related to a decision.
i.	Personal Interest: Any personal benefit that can be realized by any of the Financial Institution Staff by virtue of their work nature, position or granted powers.
j.	Disclosure: Disclosing the cases that must be disclosed as determined by the Institution's disclosure policy to the competent department at the Financial Institution by an employee.
k.	Legal Accountability: Holding a person accountable for the acts he/she commits in contravention of the laws and policies in force, and in such a way as to harm others or damage the interests of the institution in which he/she works.

* It has been decided to include money exchange companies and institutions operating in the Kingdom within the scope of the definition of financial institutions, in accordance with SAMA circular No.(41061973), dated 02/011/1441H.

III. Principles of Conduct and Work Ethics

A. Compliance with Professional Conduct and Public Morals
The Financial Institution Staff shall:
- Demonstrate and have the highest ethical standards and characteristics, including, transparency, integrity, honesty and good morals in all dealings with colleagues and Stakeholders.
- Avoid any conduct that discredits the profession inside or outside the workplace, during or not during working hours, avoid any conduct that violates public decency or morals, avoid discussions on politics, religion and sectarianism and avoid incitement and all forms of racism.
- Not hinder work progress, strike or incite such actions.
- Perform duties accurately and objectively in a manner that serves the business interests and improve the required skills through continuous learning and training.
- Protect and not damage the reputation of the Financial Institution by publishing information, statements or comments of its own using different media channels or communication means.
- Not waste time at work during official working hours, additional hours or official tasks and dedicate it for performing and completing tasks.
- Maintain the confidentiality of business information and not disclose any information that may damage the interests of the Financial Institution if disclosed, whether during working at the institution or after leaving the job.
- Understand and adhere to the laws and not bypass, violate or neglect them.
- Maintain an appropriate standard of dress and comply with the public morals in accordance with the Saudi laws during official working hours, training courses and all events in which the employee represents the Institution.
- Obtain a prior approval from the Financial Institution to publish information, statements or comments of its own using different media channels or communication means.
- Commit to optimal and permitted use of the IT infrastructure and technical resources owned by the Financial Institution without hindering the workflow.

B. Interaction with Stakeholders
Stakeholders are of great importance to the Financial Institution and must be treated in a manner that achieves transparency, integrity and cooperation using the highest professional standards. The stakeholder policy developed by the Financial Institution sets out the general principles and guidelines for its relationships with Stakeholders through:
1. Ultimate Objective: The Financial Institution should be the Stakeholder's most trusted partner, and provide the best experience by making the business easy and fast.
2. Engagement: The Financial Institution should be a constructive partner for Stakeholders by providing clear and honest advice and giving the necessary information about products and services to make sound decisions.
3. Response: The Financial Institution should deal with the complaints and feedback received from Stakeholders immediately, effectively and fairly in accordance with the applicable laws and regulations to achieve the highest professional standards.
4. Enhanced Trust: The Financial Institution shall provide Stakeholders with clear, understandable, accurate and updated information within the framework of mutual trust in all the services and dealings, and ensure timely and full performance of services as time is an important factor in the financial system.

C. Combating Financial and Administrative Corruption

1. Combating Money Laundering and Terrorist Financing Crimes and Suspicious Transactions
Money laundering and terrorist financing are considered criminal activities in Saudi Arabia under the Anti-Money Laundering Law and the Law on Combating the Financing of Terrorism and their Implementing Regulations. Such laws and regulations include preventive measures that the Financial Institution and its staff must take. Since such crimes do not only affect the Financial Institution but also the society and state, the Financial Institution shall have policies and procedures in place that ensure implementing strict measures to reduce the risk of misuse for financial crime purposes. The Financial Institution Staff shall combat financial crimes, including money laundering and terrorist financing, avoid engaging in and report any unusual or suspicious activities to the Financial Investigation Unit in accordance with the legal requirements.
The Financial Institution Staff shall be responsible for applying the AML/CFT instructions, including reporting suspicious transactions and activities, and not carrying implication to inform someone that he has been reported. In case of unfounded reports made in good faith, the person reporting such transactions and activities shall have no liability to the reported person.
The Financial Institution shall assign AML/CFT tasks to employees only after joining specialized and accredited AML/CFT courses. The Financial Institution shall also spread knowledge of AML/CFT by all appropriate means, such as training courses and bulletins.
Duties and Responsibilities of Financial Institution Staff:
- commit to the implementation of the Anti-Money Laundering Law and the Law on Combating the Financing of Terrorism, and SAMA's relevant instructions.
- perform the duties and tasks with honesty, integrity, accuracy and professionalism.
- not engage in any criminal, money laundering or terrorist financing activities.
- immediately report all suspicious transactions carried out by Stakeholders or the Financial Institution Staff by the concerned department to the AML/CFT department, which in turn reports such transactions to the Financial Investigation Unit at the Presidency of State Security.
- not carry implication to inform Stakeholders or staff that their activities that have been reported, will be reported to competent authorities or under investigation by the Financial Institution are suspected.

2. Dealing with Bribery and Corruption
Bribery is one of the most serious crimes causing corruption in societies. Therefore, the Financial Institution shall condemn and fight bribery and corruption in all forms in any dealing or interaction with Stakeholders. The Financial Institution shall also educate staff about the gravity and adverse effects of bribery and corruption on the Financial Institution and the society as a whole.
Duties and Responsibilities of Financial Institution Staff:
- report any suspicion of corruption or bribery to the competent directors or departments in the financial institution.
- not exercise nepotism, cronyism or any forms of favoritism at work, which may adversely affect the confidence of the financial institution's clients.
- not show any sign of moral or administrative corruption whatsoever, or use any suspected or illegal means to accomplish tasks.
- not abuse job powers and report any abuse to the competent departments in the Financial Institution.

D. Gifts and Hospitality

In the context of relationships, gifts and hospitality are offered and/or accepted, thus, the Financial Institution Staff shall exercise caution and apply sound judgment when presenting and accepting gifts to or from Stakeholders. This aims at protecting the integrity of the Financial Institution and staff as per the institution's gift and hospitality policy.

To protect the principle of professionalism, an assessment shall be made to determine whether the gift or hospitality is reasonable, appropriate and justified or not, taking into account the value, nature, time and intended intentions of such gift /hospitality. The Financial Institution Staff shall:

a.	Not request or accept any gifts invitation, service or anything of material or non-material value whether for himself/herself or his/her personal relationships from natural or legal persons that have or seek to have a relation with the Financial Institution, which may directly or indirectly affect the objectivity of the Financial Institution Staff in implementing their tasks, the decisions made or may force them to commit to do something in return.
b.	Understand that any current or former employee violating, participating or assisting in violating the laws related to requesting or accepting gifts and invitations will be held accountable for such actions.
c.	Accept the gift presented if rejection would be offensive to the Financial Institution, rejection is not practically possible or if presented to the staff in official visits, events or receptions, in accordance with the rules of etiquette and protocol followed in visits and events. However, the acceptance of the gift shall be subject to the following:

the gift shall not be cash, loan, share or financial derivative.
the gift and its value shall be according to the usual practices followed in a particular event, such as trophies.
if the gift is a fee discount or exemption, it shall be related to an invitation to attend a conference or meeting that enhances knowledge, positively reflects on the business of the Financial Institution and does not result in a conflict of interest.
the gift shall not be presented due to the recipient's position or work at the Financial Institution.
the person presenting the gift shall not have private or public interest that he/she wishes to get from the Financial Institution or one of its staff.

d.	An employee may accept a prize from an entity with which the Financial Institution has a relationship due to his/her achievement as follows:

the prize shall be awarded as part of an announced and recognized program on a regular basis.
the winner selection shall be according to an announced criteria.
prior approval shall be obtained from the Financial Institution.

e.	The gift recipient shall submit a written disclosure form to the compliance department directly after receiving the gift in the following cases:

if the gift has a value and can be sold.
if the gift is perishable and of a value exceeding (1000) SAR.

f.	The Financial Institution Staff shall not offer gifts, grants or invitations to those who personally have business relationships with the Financial Institution, unless offered by the competent department as per the approved policy on this regard.
g.	Gifts and grants that may damage the reputation of the Financial Institution shall not be accepted or requested.

E. Compliance with Laws, Regulations, Instructions and Policies
Adherence to rules, regulations, instructions and policies is one of the most important bases and factors of success for the Financial Institution that helps maintaining its reputation and credibility. The Financial Institution Staff shall be aware of, comply with and understand the applicable laws, regulations, instructions and policies related to the work and tasks assigned, which shall also be applied without violation or negligence. In addition, any dealing that may violate such laws, regulations, instructions or policies shall not be carried out in the name of the Financial Institution.

F. Dealing with Conflicts of Interest
To protect the Financial Institution and Stakeholders, the staff shall be responsible for identifying any potential or actual conflict of interest that may adversely affect the Financial Institution and/or Stakeholders. In cases where a conflict of interest is not possible to be prevented, the Financial Institution shall properly manage such conflict through a set of controls, policies and procedures.

G. Confidentiality and Disclosure Mechanisms

Information is an important asset to the businesses of the Financial Institution and information protection is an important factor for its success and continuity. In addition, all information related to the Financial Institution's Stakeholders or Staff shall be the property of the institution. The Financial Institution shall prepare a set of controls and procedures for the destruction of unused or damaged documents and devices.

The Financial Institution shall classify information in terms of confidentiality as follows:

1. Classification of Financial Institution Information

	a.	General Information: General information available to the public for free through the institution's authorized channels.
	b.	Insider Information: Information that is not disclosed to any person outside the institution.
	c.	Confidential Information: All non-public information related to the Financial Institution, staff or Stakeholders. Financial Institution Staff, with access to such information, shall protect and only disclose the information to other staff members as necessary. Unauthorized disclosure of confidential information may result in legal ramifications, such as lawsuits, legal penalties or damage to reputation. Examples of confidential information include: private information, Financial Institution strategies, competitively sensitive information, trade secrets, specifications, stakeholder lists or research data. Unauthorized persons shall not have access to such information.
	d.	Highly Confidential Information: Information entrusted to some employees that could significantly affect the Financial Institution, staff or Stakeholders if disclosed without permission. Such information should be made available to the staff only as required by the Financial Institution's work. The Financial Institution Staff shall comply with the information security policy, especially that addresses dealing with different types of information. Highly confidential information shall only be available to authorized employees.

2. Classification of Confidentiality

a.	Confidentiality of Stakeholder Information: It shall be the duty and responsibility of the Financial Institution to protect the confidentiality of stakeholder information. The staff shall be entrusted with the stakeholder important information which is also important to maintain the Financial Institution's ability to provide quality products and services. Such information includes personal data, information on products; services; accounts; balances; transactions; mergers or acquisitions; status of securities; pending requests or plans prepared to increase capital. Stakeholder information protection shall be the sole and collective responsibility of the Financial Institution Staff. Information shall be handled with the utmost confidentiality in accordance with the highest standards applied. The obligation to maintain the confidentiality of information shall continue even after the end of the work/ service of the employee. Stakeholder information shall not be shared with anyone who does not have access to it inside or outside the Financial Institution.
b.	Confidentiality of Property Information: While working at the Financial Institution, staff may provide, develop and/or access information, ideas, innovations, systems, intellectual properties, technologies, policies, procedures, processes, software, hardware, operational processes, profitability results and forecasts, business plans, strategies, programs, staff data, reports, studies, records; stakeholder data, lists and information; trade secrets and other information related to the Financial Institution, its products or services, Stakeholders, potential stakeholders or any other relevant parties that are not publicly available. Such information may be original, copy of the original, electronic, saved, written or any other type. As a requirement for employment/ service, the Financial Institution Staff shall acknowledge or agree that such information is the property of the Financial Institution alone and shall not have any rights or interests with respect thereto. It shall be the duty of the Financial Institution Staff to maintain property information and not use such information outside the limits of the Financial Institution's business. Furthermore, unauthorized use of property information shall be prohibited. Financial Institution Staff shall not record any communications that include property information through the use of electronic devices or personal recording devices, including mobile phone cameras, and such information shall not be used, spread or disclosed to any unauthorized third party during working at the institution or after leaving the job. Financial Institution Staff shall not spread or destroy property information. In case of resignation, Financial Institution Staff shall delete/ return property information in possession, including the information saved on personal devices, such as electronic devices or personal computers.
c.	Confidentiality of Insider Information: Financial Institution Staff may sometimes be entrusted with material Insider Information. Such Information may be kept, but shall not be misused. The definition of "material Insider Information" is broad. However, Insider Information is considered "material" if it is highly likely that an adult will consider it important to make investment/ business decisions or if the spread of such information will affect the price of the company's securities in the market. Insider information may also be considered material if it is related to the future or potential or expected events; or if considered material only when combined with publicly available information. All information shall be considered "Insider" unless disclosed and enough time has passed. Examples of adequate information disclosure include: information submitted to securities markets and regulators (such as Tadawul and CMA) or issued in a press release or through meetings with members of the media and the public. Financial Institution Staff shall not discuss or pass Insider Information on to any other employee unless the exchange of such information serves the purposes of the Financial Institution. Financial Institution Staff shall not trade, directly or indirectly, through granting power of attorney, through arranging a trading deal in which one of the parties has personal, business or contractual relationship with one of the Financial Institution Staff, or through giving a legal agent or any other person the authority to act on his/her behalf, in the shares or securities of a listed company, and shall not offer recommendations to do so based on Insider Information they have access to by virtue of their work/ service in the Financial Institution. Financial Institution Staff shall not make investment or business decisions, that are not related to the work of the Financial Institution, based on information they have obtained for the Financial Institution. Such act is a punishable violation. Therefore, if any member of the Financial Institution believes that he/she has access to Insider Information, he/she shall not trade in securities based on such information, except after consulting the compliance department. In case of carrying out trading activities or owning securities before joining the Financial Institution, the competent department shall be informed.
‏d.	Exchange of Confidential Information on the Basis of Need: Financial Institution Staff shall not disclose confidential information to other employees, supervisory and control authorities or external lawyers and/or advisors, except after obtaining the required approvals. Disclosure shall be in accordance with following cases: if the recipient is authorized and has a legitimate need for such information in relation to his/her responsibilities of work/ service according to the relevant instructions. if disclosing such information will not cause damage. The Financial Institution Staff shall not give any information about the Financial Institution to third parties unless they have the authority to do so. As an exception, some information may be disclosed if disclosure is normal when carrying out the Financial Institution's business, for example, information requested about solvency and/or by a supervisory or regulatory authority or if disclosure is in the interest of the Financial Institution and its Stakeholders. The following are examples of cases that are subject to the exemption, however, the exception will only be applied after obtaining the approval of the concerned officials at the Financial Institution: general periodic disclosures requested by regulators. information requested by competent authorities for investigation purposes. Regulation and supervision information requests shall be referred to the compliance department. Thus, no employee shall have the right to respond to any enquiry about regulation or supervision or provide such authorities with the requested information except through the compliance department or if he/she is authorized to do so.

Duties of Financial Institution Staff:

The Financial Institution Staff shall be obliged to protect confidential information. In addition to complying with the detailed requirements stated in the information security policy prepared by the Financial Institution, the staff, as a minimum, shall:

Adhere to the information security policy and procedures, and the laws and instructions related to confidentiality.
Not to access non-public stakeholder or property information for purposes unrelated to their work, as accessing such information must be within their powers and for work reasons.
Not try to obtain confidential information that are unrelated to their work.
Not provide any unauthorized person inside or outside the Financial Institution with confidential information or facilitate his/her access to it.
Provide authorized persons with information according to the required limits.
Maintain stakeholder and property information or other confidential information in a way that allows access to authorized persons only.
Not leave any confidential information in places where they can be accessed, such as shared offices or areas.
Use envelopes, postal services or emails marked as confidential when exchanging confidential information within the Financial Institution.
Not to copy any document or text that is not related to work before obtaining the approval of the direct line manager.
Not to enter vaults, strong rooms or other restricted areas unless authorized or required by their work.
Only put the documents they are currently working on the desk, and keep the other documents in drawers, preferably in locked places.
Turn off all devices and lock all drawers before leaving the office.
Destroy all documents that are no longer needed and contain sensitive or confidential information and keep other papers and documents in files inside lockers.
Not disclose any confidential information about the Financial Institution to any person, including the institution employees who are unauthorized to access or do not need such information.
Take precautionary measures to avoid unauthorized disclosure of confidential information.
Not to discuss any sensitive or confidential information in public places, such as elevators, corridors and public transportations.
Maintain the confidentiality of the Financial Institution information during working at the institution or after leaving the job, and not to share, collect, record or spread such information at any time or for any reason unless after obtaining a written approval from the competent department.
Not to access the premises of the Financial Institution outside working hours unless after obtaining the approval of the direct line manager and the security and safety department.
Understand and acknowledge that any intellectual property developed for the Financial Institution or created using its resources are the property of the Financial Institution alone.
Maintain the confidentiality of the access codes and passwords of strong rooms, IT systems and any other codes or passwords.
Prevent intentional or unintentional disclosure of confidential information.
Obtain prior approval from the authorized person to copy or keep any document or text outside the Financial Institution building to conduct work outside the building.

The information security department shall be informed when any employee receives confidential information he/she does not need at that time. In addition to the abovementioned duties, the Financial Institution Staff shall be responsible for meeting the following security obligations:

comply with legal, regulatory and other contractual requirements applied in their field of business.
maintain work ID and passwords of the IT systems and change them periodically; understand that they are responsible for any action carried out using their work IDs, and follow information security policies to prevent misuse of work ID.
not tamper with the security and protection of the IT systems.
take the necessary steps to protect the information stored on computers.
comply with the additional security procedures established to prevent unintentional disclosure of confidential information by employees who have laptops, remote access to the systems or permission to use any other portable devices to perform the business of the Financial Institution.

H. Use and Leakage of Insider Information for Market Manipulation:
Financial Institution staff shall not engage in any act, or participate in or encourage the performance of any conduct that may give false idea of any investment, price or value of something by using or leaking Insider Information to obtain personal benefits for their own or for third parties.

I. Whistleblowing
The Financial Institution shall provide effective methods of communication to receive reports of actual or potential violations. Financial Institution Staff shall report any suspicious activities carried out by employees who have Insider or Confidential Information. In addition, cases of fraud or attempted fraud, money or business paper loss, potential violation of the laws, regulations, instructions or policies of the Financial Institution or unusual transactions that the reporting employee believes that they do not conform with the financial status of Stakeholders shall be reported as well through the different reporting lines provided. The Financial Institution shall protect the confidentiality of whistleblowers, protect employees reporting in good faith and not tolerate any form of retaliation against whistleblowers.
The Financial Institution shall hold employees who deliberately ignore reporting wrongdoings that violate the relevant laws, regulations, instructions or policies accountable.

J. Remuneration and Compensation
The Financial Institution may provide benefits to employees outside the scope of the official job contract concluded in order to incentivize them to achieve the best results in accordance with the remuneration and compensation policy prepared by the institution, taking into consideration the following:
1. ensure sound and effective risk management through an effective management structure to set objectives and share them with employees.
2. ensure effective remuneration and compensation risk management by developing a policy to ensure that remuneration and compensation are not only given to specific category of employees.
3. comply with the Financial Institution business strategy, values, priorities and long term objectives.

IV. Consequences of Non-Compliance with the Principles of Conduct and Work Ethics
The Financial Institution shall ensure the application of the Principles of Conduct and Work Ethics in the institution, monitor and control any violation thereof, develop and update the Code according to these principles and impose penalties for violations according to the relevant rules and instructions, and under the work organization law and penalties of each Financial Institution.

Rules for Advertising Products and Services Provided by Financial Institutions
No: 44064343 Date(g): 5/3/2023 | Date(h): 13/8/1444 Status: In-Force

Introduction
The Saudi Central Bank is the authority responsible for monitoring and supervising the financial institutions licensed by it. The Bank has regulatory powers, including framing and regulating the rules for advertising products and services provided by those financial institutions, based on the Saudi Central Bank Law issued by Royal Decree No. M/36 dated 11/04/1442H and its Article 4 of the Law which states that: “The Bank shall carry out its duties according to the provisions of the Law, the regulations and policies issued by the Board, and in line with international best standards and practices. The Bank shall have all necessary powers to achieve its objectives. To this end, SAMA may exercise the following duties and powers: 3. Issuing regulations and instructions for the financial institutions and their business. 9. Developing instructions and procedures that would protect the customers of financial institutions.” SAMA issued these Rules to achieve the objectives relevant to advertising products and services provided by financial institutions to customers and consumers.

Scope of Application
These Rules shall apply to all financial institutions when advertising for any product or service provided by them.

Definitions

Term	Definition
SAMA	Saudi Central Bank*.
Financial Institutions	Entities supervised and regulated by SAMA according to the applicable laws.
Customer	A natural or juristic person benefiting from any of the products and services.
Consumer	A natural or juristic person for whom products and services are presented.
Products and Services	Any product or service offered by the financial institution.
Advertising	A commercial message promoted by any means, directly or indirectly.
Means	A visual, audible or readable tool used for advertisement.

* The Saudi Arabian Monetary Agency was replaced by the name of Saudi Central Bank in accordance with The Saudi Central Bank Law No. (M/36), dated 11/04/1442H, corresponding 26/11/2020AD.

Purpose

These Rules aim to:
A.	Set the regulatory framework and the minimum standards and procedures to which financial institutions must comply with when advertising their financial products and services.
B.	Raise the level of confidence of financial institutions' customers.
C.	Protect financial institutions' customers and promote the principles of disclosure and transparency.

Compliance with Relevant Laws, Regulations and Instructions

When advertising for any product or service, the financial institutions shall comply with these Rules in a manner consistent with the relevant laws, regulations, rules and instructions, and any subsequent updates thereto, including, but not limited to, the following:
A.	Any laws, regulations, instructions and rules issued by the concerned entities regulating the advertisement’s content, such as the Ministry of Media and General Commission for Audiovisual Media.
B.	Banking Control Law.
C.	Cooperative Insurance Companies Control Law and its Implementing Regulations.
D.	Finance Companies Control Law and its Implementing Regulations.
E.	Real Estate Finance Law and its Implementing Regulations.
F.	Finance lease Law and its Implementing Regulations.
G.	Law of Payments and Payment Services and its Implementing Regulations.
H.	Implementation Rules for Banking Control Law.
I.	Rules Regulating Consumer Microfinance Companies.
J.	Rules Regulating Money Changing Business.
K.	The Updated Regulations for Consumer Financing.
L.	Regulations for Issuance and Operations of Credit and Charge Cards.
M.	Regulation of Agent Banking in the Kingdom of Saudi Arabia.
N.	The Updated Rules for Engaging in Debt-Based Crowdfunding.
O.	Rules on Outsourcing.
P.	Code of Conduct and Work Ethics in Financial Institutions.
Q.	Any relevant instructions issued by SAMA in the future.

Rules and Procedures

Article1: Financial institutions shall exercise due diligence when advertising products and services in terms of advertisement’s content and approach, and avoid using tempting, misleading or inaccurate methods, and not exaggerate the advantages of these products and services being advertised. All terms and numbers used in advertisements must be clear and easy to understand, including headers and footnotes.
Article2: Arabic shall be the language used in advertising products and services provided by financial institutions, excluding advertisements for non-Arabic speakers that comply with these Rules.
Article3: Financial institutions shall meet the advertisement’s requirements of any product or service, which as a minimum, include the following:
	3.1	The financial institution name, logo and contact information.
	3.2	The name of the product or service being advertised.
	3.3	Conditions and main provisions.
	3.4	Target customer and/or consumer.
	3.5	All related fees and commissions for using a product or service, including VAT. If the advertisement is for an insurance policy, the advertisement must clarify whether the price includes all fees or not.
	3.6	The minimum necessary transactions/requirements to benefit from the product or service, if any.
	3.7	An explanation of the icons referred to explicitly in the advertisement’s language.
	3.8	If the advertisement is for a finance product or service, the advertisement must explicitly mention the APR and the finance term for the customer and/or consumer, if any, and may not include other rates of the term cost. If the advertisement is for a real estate finance, the advertisement must state if the term cost is variable or fixed.
	3.9	Subject to Paragraph 3.5 of Article 5 the advertisement must state that the financial institution is subject to SAMA’s supervision and control.
Article4: Subject to the provisions of Article 3 abovementioned, when announcing any promotional offers, financial institutions must include the mechanism for benefiting from such offers in a clear manner that makes it easier for customers and consumers to understand, and state the beginning and end period of the offer.
Article5: When advertising, financial institutions shall not do the following:
	5.1	Provide an offer, statement or claim that is false or expressed in a way that would directly or indirectly lead to deceiving or misleading the consumer.
	5.2	Publish an advertisement that infringe any intellectual property rights, or use a fake trademark.
	5.3	Use the name and/or logo of SAMA in its advertisements.
	5.4	Present an advertisement that may be confused with other products, services or names.
	5.5	Violate public order and morals, or offend the values and customs of society.
	5.6	Adverting to incitement to commit crimes, practice any racial discrimination or incite sectarian, tribal, regional or other fanatic tendencies in the advertisement’s content.
	5.7	Advertise for illegal products or services.
	5.8	Use images that represent a banknote or a part of it, a coin, or a plastic banknote in regular circulation in Saudi Arabia without obtaining a non-objection letter from the competent authorities.
Article6: If the advertised product or service is priced in foreign currencies, or if the value of the advertised product or service is affected by the foreign exchange rate, the advertisement must contain the following phrase “The price of the product / service can be affected by changes in the foreign exchange rate” provided that the statement should be in clear and legible manner.
Article7: Financial institutions, when indicating that the product or service is provided free of charge, must make it clear in explicit terms, and specify the target group of the product or service.
Article8: When advertising for its products and services, financial institutions must take into account not to harm or diminish the reputation of the financial sector and the interests of other financial institutions, or to violate the principle of fair competition.
Article9: Financial institutions are prohibited from using the personal information and data of customers in advertising materials without obtaining their written consent.
Article10: Financial institutions are prohibited from sending any advertisement for insurance or credit products that are not suitable for customers and/or individual consumers under the age of (18) in Hijri calendar.
Article11: Financial institutions must obtain the customer’s written or electronic consent regarding his desire to receive advertisements according to the channels preferred by the customer. They must grant the customer the right to permanently refuse to receive these advertisements easily and in clear and specific ways.
Article12: Advertisements and the offers, specifications or benefits they contain are binding on financial institutions, and the advertised specifications must be included in the contract, agreement, document or the like.
Article13: Advertisements shall be announced through the official and reliable channels of financial institutions and/or through a third party licensed by the competent authority. Financial institutions must ensure that the third party comply with these rules and relevant instructions. Financial institutions bear responsibility in the event that the third party does not comply with them.
Article14: Financial institutions must put in place an advertising policy that is in line with these rules, regulations, and instructions issued by SAMA and the competent authorities, as well as verify its implementation and update it whenever necessary, at a minimum once every 3 years.
Article15: The Compliance Department or whoever carries out its work in the financial institution must review the advertising materials and approve them in writing before publishing them, after ensuring that they comply with the provisions of these rules and all relevant rules, regulations and instructions.
Article16: Without prejudice to the jurisdictions of the concerned authorities, in the event of a violation of other regulations, the financial institution is responsible if the content of its advertisement includes any violation.
Article17: SAMA has the right to require the financial institution that does not comply with the conditions set forth in these rules to withdraw the advertisement within one business day from SAMA’s notification.

Concluding Provisions

1.	These rules are considered complementary to other relevant rules and instructions and shall override any conflicting provisions in any rules or instructions issued by SAMA prior to the date of issuance of these rules.
2.	All provisions of these Rules shall enter into force from the date of their approval.
3.	Financial institutions are granted 60 days from the date of circulating policy development stated in Article 14 of these rules.

Consumer Complaints

The Unified Form for Responding to Complaints Received Through the “SAMACares” System

In reference to the instructions of SAMA under Circular No. 381000107382 dated 01/11/1438 H regarding the application of the service level agreement in handling complaints received through the “SAMACares” system. In view of the observations made during the last period regarding the quality of responses to complaints through the system.

In order for SAMA to quickly process complaints with efficiency and high quality and to contribute to preserving customers’ rights, all financial institutions subject to the supervision and control of SAMA must commit to using the format of the unified form to respond to complaints received through “SAMACares” system in accordance with the response classification as shown in the accompanying form.

SAMA also emphasizes the necessity of developing and activating the work of the Customer Care Department with the relevant departments, including creating and activating a service level agreement that guarantees the speedy handling of complaints within the periods specified in the instructions, and with high quality, and measuring the extent of compliance with this agreement periodically to ensure its effectiveness.

Complaints received through “SAMACares” system by the customer:

First: If you use the “Missing Documents” feature to study the complaint or inquiry:

Dear customer:

Greetings.

Referring to the complaint submitted by you regarding your objection to (the customer’s complaint is specified in detail):

1. ........

2. ........

We hope that you will kindly provide us with the following documents so that we can complete the necessary work: (All required documents and information that are not available at the financial institution shall be requested)

1. .......

2. .......

Second: To benefit the customer after processing the complaint:

Dear customer:

Greetings.

Referring to the complaint submitted by you regarding your objection to (the customer’s complaint is specified in detail):

1. ......

2. ......

We would like to inform you that the complaint has been handled... (By depositing the objected amount / reversing the amount / settling the contract / rescheduling.... etc., the corrective action shall be clarified, including all details and the date of the action).

(The results of the complaint study shall be clarified and the customer will be provided with documents supporting the handling of the complaint)

We would also like to inform you that we have communicated with you on …………. All your inquiries were answered and you were informed of the above results.

Complaints escalated to SAMA:

M/S SAMA

Greetings.

In reference to your request... (All that has been requested to handle the complaint shall be determined by SAMA)....

We would like to inform you that the complaint has been handled...... (The results of examining the complaint shall be explained in detail and a reference shall be made to the text of the paragraph on which it is based in the “Instructions/Contract/Terms and Conditions... etc". The bank’s response shall be supported by documents establishing the validity of the handling in addition to answering SAMA’s note and attaching any requested documents)

We would also like to inform you that we contacted the customer by telephone on...... at ......... He/she was informed of the results of handling the complaint.

Measuring Performance Indicators of Financial Entities

Based on SAMA’s role to protect consumers of financial entities subject to its supervision; with reference to SAMA Circular No. 381000107382 dated 01/11/1438 H, which refers to the launch of the first phase of the “SAMACares” system; and as the circular included that SAMA would, during the second phase of the system, evaluate the work of financial entities according to performance indicators that would be approved later,

Therefore, we would like to emphasize the importance of adhering to the performance indicators described below:

Performance Indicator	Indicator Description	Desired Objective
Customer satisfaction rate with complaints handling	Complaints in which customers objected to the financial entity’s response	Not less than 80%**
Quality ratio of responses of financial institutions to SAMA*	Complaints that were closed with more than three correspondences	Not more than 97%*
Percentage of compliance with the service level agreement	Service Level Agreement as per SAMA Circular No. 381000107382	Not less than 95%*
Percentage of complaints that were processed and closed in favor of the customer after escalation*	Complaints in which the customers’ objection to the financial entity’s response was accepted and were closed in the interest of the customer	Not more than 5%**

Note that the performance of the financial entities according to these indicators will be monitored on a quarterly basis, starting from 01/01/2018 G, and SAMA expects the Board of Directors to monitor the performance of these indicators and provide full support and the necessary human resources to the relevant departments to ensure compliance.

In order to ensure that the financial entities deal fairly and equitably with customers, SAMA will take legal measures against companies and banks that violate this circular.

*Amended pursuant to Circular No. (42027544) dated 28/04/1442 H

**Amended pursuant to Circular No. (44009296) dated 02/05/1444 H.

SAMACares Announcement
Based on the role of SAMA in promoting the concept of consumer protection of financial entities subject to its supervision, and in continuation of the institution’s efforts to improve the customer experience when dealing with these entities, and the importance of developing the efficiency and effectiveness of handling complaints, we are pleased to inform you of the launch of the "SAMACares" system, which will enable its users to analyze various types of complaints and follow their patterns according to each product and service.
Complaints are considered one of the most important indicators and sources for developing services and products. In order to emphasize customers’ right to submit complaints, we would like to emphasize the necessity of amending policies and procedures to fit the definition of a complaint as "every expression of dissatisfaction related to the service provided, whether justified or unjustified, in writing or verbally"*.
With reference to the controls for handling complaints and related circulars, and to ensure that the statutory periods in handling the complaint are not exceeded, financial entities shall adhere to the “SAMACares” system to implement service levels agreements, which excludes the period during which the complaint is referred to the customer, according to the following periods:
1. Responding to complaints received directly from customers within a maximum period of five working days from the date of receipt.
2. Responding to customer complaints in which SAMA accepted the customer’s objection to the entity’s response within a maximum period of three working days from the date of requesting the statement.
3. Responding to complaints that have been classified by SAMA as being of high importance within two working days from the date of requesting the statement.
Accordingly, SAMA expects you to provide support to the relevant departments with the appropriate powers and the human and material resources necessary to ensure compliance with what was indicated above, provided that the process of analyzing complaints is given priority and adequate attention by senior management, noting that SAMA will evaluate the work of the financial entities according to the following performance indicators:
1. Percentage of complaints in which customers objected to the entity’s response.
2. Percentage of complaints in which customers’ objection to the entity’s response was accepted.
3. Average period of response to complaints according to the classification mentioned in the service level agreement.
4. The rate of correspondence between SAMA and the financial entity from accepting the customer’s objection until closing the complaint.**
* According to Circular No. (371000101671) dated 17/09/1437 H.
** For details, refer to SAMA's Circular No. (391000028201) dated 10/03/1439 H, titled “measuring performance indicators of financial entities”.

A Guide for Calculating the Early Payment Amount
No: NA Date(g): 1/8/2015 | Date(h): 16/10/1436 Status: In-Force
Translated Document
Disclaimer: The utmost effort has been made to achieve a high level of quality and accuracy in the contents of this guide. SAMA does not bear any responsibility related to its use. For more information, please refer to the liability section on the SAMA's website.

Introduction
SAMA places significant importance on enhancing the protection of the rights of beneficiaries of financing products and promoting transparency and disclosure principles through the application of technical standards and international best practices aimed at improving transparency, disclosure, and fairness in transactions within the sector. Early repayment is considered a right for beneficiaries of various financing products. Therefore, SAMA has mandated financing providers (banks/financing companies) to use a unified method for calculating the early repayment amount for financing contracts with monthly payments, such as personal financing, vehicle financing through leasing or other means, and real estate financing, to enable beneficiaries to understand their rights.
This guide has been prepared to provide a simplified explanation of the early repayment amount and the method for calculating it, based on the provisions of Article (82) and (84) of the Implementing Regulation of the Finance Companies Control Law issued in the month of Rabi' al-Thani 1434H corresponding to February 2013 G , Article (9) and (11) of the Implementing Regulation of the Finance Lease Law issued in the month of Rabi' al-Thani 1434H corresponding to February 2013G, and Article (11) of the first update to the Regulations for Consumer Financing issued in the month of Ramadan 1431H corresponding to July 2014G.

Early Repayment

Financing regulations, their implementing regulations, and consumer finance controls ensure that beneficiaries of financing products can expedite the repayment of the remaining loan amount at any time, except during the period of prohibition on early repayment for real estate financing if specified in the contract, provided that the prohibition period does not exceed two years from the date of contract execution. This early repayment is made without incurring the term cost for the remaining period. However, the financing entity is entitled to receive compensation from the beneficiary for the following:

A.	Reinvestment Cost, this should not exceed the term cost for the three months following the repayment, calculated based on the declining balance.
B.	Payments Made to a Third Party Due to the Financing Contract, these must meet the following conditions:
1.	Payments must have been paid to a third party and not compensated by the beneficiary to the financing entity.
2.	These payments must be documented in the financing file.
3.	The payments cannot be refunded from the third party.
4.	Compensation must be calculated based on the remaining term of the financing contract.

Key Conditions for Calculating the Early Repayment Amount
1. Use the declining balance method to distribute the term cost over the maturity period, with the term cost allocated proportionally among the installments based on the remaining balance of the financing amount at the beginning of the period for which the installment is due.
2. The amortization table must specify (number of payments, payment date, payment amount, term cost amount (profit) and principal amount for each payment, remaining balance of the financing amount after each payment
3. When opting for early repayment, the total remaining balance of the finance amount must be paid in full, along with the term cost for the three months following the repayment, calculated based on the declining balance.

Examples of Early Repayment Amount Calculation

Example (1) Early Repayment Calculation Method for Personal Financing
Financing Details	Personal financing agreement of (50,000) SAR to be repaid in monthly installments of (4,244) SAR over (12) months.
Early Repayment Calculation Method	If the client wishes to repay early and there are (6) installments remaining, the outstanding balance of the financing amount is (25,212.74) SAR, and the total cost of the term for the next three months prior to the early repayment is (179.27) SAR.
Early Repayment Amount (Total of the highlighted amounts)	25,212.74 + 179.27 = (25,392 SAR)

Month	Initial balance	Monthly EMI	Cost of Term Amount	Principal Amount	Ending Balance
1	50,000.00	4244	142.03	4,101.97	45,898.03
2	45,898.03	4244	130.38	4,113.62	41,784.41
3	41,784.41	4244	118.69	4,125.31	37,659.10
4	37,659.10	4244	106.97	4,137.03	33,522.08
5	33,522.08	4244	95.22	4,148.78	29,373.30
6	29,373.30	4244	83.44	4,160.56	25,212.74
7	25,212.74	4244	71.62	4,172.38	21,040.36
8	21,040.36	4244	59.77	4,184.23	16,856.13
9	16,856.13	4244	47.88	4,196.12	12,660.01
10	12,660.01	4244	35.96	4,208.04	8,451.97
11	8,451.97	4244	24.01	4,219.99	4,231.98
12	4,231.98	4244	12.02	4,231.98	0.00

Example (2) Calculation Method for Early Repayment of Financial Lease for Vehicles Ending in Ownership
Financing Details	Financial lease agreement for a vehicle worth (150,000) Riyals, Monthly payment amount: (2,300) Riyals for (60) months, Down payment: (30,000) Riyals, Administrative fees: (1,000) Riyals payable upon signing the contract.
Early Repayment Calculation Method	If the customer wishes to make an early repayment and has (24) payments remaining, the remaining balance of the financing amount is (52,084.08) Riyals, and the total cost of the term for the next three months after the early repayment is (705.58) Riyals.
Early Repayment Amount (Total of the highlighted amounts)	52,084.08 + 705.58 = (52,789.66 Riyals)

Month	Initial balance	Monthly EMI	Value of Asset Rent	Value of Ownership Right	Ending Balance
1	120,000	2300	564.18	1,735.82	118,264.18
2	118,264.18	2300	556.02	1,743.98	116,520.19
3	116,520.19	2300	547.82	1,752.18	114,768.01
4	114,768.01	2300	539.58	1,760.42	113,007.59
5	113,007.59	2300	531.30	1,768.70	111,238.89
6	111,238.89	2300	522.99	1,777.01	109,461.88
7	109,461.88	2300	514.63	1,785.37	107,676.51
8	107,676.51	2300	506.24	1,793.76	105,882.75
9	105,882.75	2300	497.80	1,802.20	104,080.55
10	104,080.55	2300	489.33	1,810.67	102,269.88
11	102,269.88	2300	480.82	1,819.18	100,450.70
12	100,450.70	2300	472.27	1,827.73	98,622.97
13	98,622.97	2300	463.67	1,836.33	96,786.64
14	96,786.64	2300	455.04	1,844.96	94,941.68
15	94,941.68	2300	446.37	1,853.63	93,088.05
16	93,088.05	2300	437.65	1,862.35	91,225.70
17	91,225.70	2300	428.90	1,871.10	89,354.59
18	89,354.59	2300	420.10	1,879.90	87,474.69
19	87,474.69	2300	411.26	1,888.74	85,585.95
20	85,585.95	2300	402.38	1,897.62	83,688.33
21	83,688.33	2300	393.46	1,906.54	81,781.79
22	81,781.79	2300	384.49	1,915.51	79,866.29
23	79,866.29	2300	375.49	1,924.51	77,941.78
24	77,941.78	2300	366.44	1,933.56	76,008.22
25	76,008.22	2300	357.35	1,942.65	74,065.57
26	74,065.57	2300	348.22	1,951.78	72,113.78
27	72,113.78	2300	339.04	1,960.96	70,152.83
28	70,152.83	2300	329.82	1,970.18	68,182.65
29	68,182.65	2300	320.56	1,979.44	66,203.21

Month	Initial balance	Monthly EMI	Value of Asset Rent	Value of Ownership Right	Ending Balance
30	66,203.21	2300	311.25	1,988.75	64,214.46
31	64,214.46	2300	301.90	1,998.10	62,216.36
32	62,216.36	2300	292.51	2,007.49	60,208.87
33	60,208.87	2300	283.07	2,016.93	58,191.94
34	58,191.94	2300	273.59	2,026.41	56,165.53
35	56,165.53	2300	264.06	2,035.94	54,129.59
36	54,129.59	2300	254.49	2,045.51	52,084.08
37	52,084.08	2300	244.87	2,055.13	50,028.95
38	50,028.95	2300	235.21	2,064.79	47,964.16
39	47,964.16	2300	225.50	2,074.50	45,889.66
40	45,889.66	2300	215.75	2,084.25	43,805.41
41	43,805.41	2300	205.95	2,094.05	41,711.36
42	41,711.36	2300	196.10	2,103.90	39,607.47
43	39,607.47	2300	186.21	2,113.79	37,493.68
44	37,493.68	2300	176.28	2,123.72	35,369.95
45	35,369.95	2300	166.29	2,133.71	33,236.25
46	33,236.25	2300	156.26	2,143.74	31,092.50
47	31,092.50	2300	146.18	2,153.82	28,938.69
48	28,938.69	2300	136.05	2,163.95	26,774.74
49	26,774.74	2300	125.88	2,174.12	24,600.62
50	24,600.62	2300	115.66	2,184.34	22,416.28
51	22,416.28	2300	105.39	2,194.61	20,221.67
52	20,221.67	2300	95.07	2,204.93	18,016.74
53	18,016.74	2300	84.71	2,215.29	15,801.45
54	15,801.45	2300	74.29	2,225.71	13,575.74
55	13,575.74	2300	63.83	2,236.17	11,339.56
56	11,339.56	2300	53.31	2,246.69	9,092.87
57	9,092.87	2300	42.75	2,257.25	6,835.62
58	6,835.62	2300	32.14	2,267.86	4,567.76
59	4,567.76	2300	21.48	2,278.52	2,289.24
60	2,289.24	2300	10.76	2,289.24	0.00

Example (3) Calculation Method for Early Repayment of Real Estate Financing
Financing Details	Real estate financing agreement of (1,000,000) SAR to be repaid in monthly installments of (4,510) SAR over (300) months, with an initial payment of (300,000) SAR and an administrative fee of (5,000) SAR payable after signing the contract.
Early Repayment Calculation Method	If the client wishes to repay early and there are (120) installments remaining, the remaining balance of the financing amount will be (406,235.99) SAR, and the total cost of the term for the next three months following the early repayment will be (6,056.03) SAR.
Early Repayment Amount (Total of the highlighted amounts)	406,235.99 + 6,056.03 = (412,292.02 SAR)

Example (4) Calculation Method for Early Repayment of Personal Financing
Financing Details	Personal financing agreement of (100,000) SAR to be repaid in monthly installments of (4,450) SAR over (24) months. The first payment is due (20) days after the contract signing, and an administrative fee of (1,000) SAR is payable after signing the contract.
Early Repayment Calculation Method	If the client wishes to repay early and there are (11) installments remaining, the remaining balance of the financing amount will be (47,376.41) SAR, and the total cost of the term for the next three months following the early repayment will be (710.6) SAR.
Early Repayment Amount (Total of the highlighted amounts)	47,376.41 + 710.6 = (48,087.01 SAR)

Frequently Asked Questions

1. How is the declining balance method used to distribute the term cost?

The financing contract must specify the use of the declining balance method to distribute the term cost over the repayment period, with the term cost allocated proportionally among the installments based on the remaining balance of the financing amount at the beginning of the period for which the installment is due.

2. Can the lessee acquire the leased asset early?

If the lessee opts to acquire the leased asset under the contract at any time, they may do so through an additional agreement that finalizes the sale or gift. This involves settling the remaining installments early without bearing the term cost for the remaining contract period. The lessor may be compensated for reinvestment costs and any payments made to a third party due to the financing contract. The contract may specify a period during which early acquisition is prohibited if the contract concerns real estate, provided the prohibition does not exceed two years from the date of the financing contract.

3. Can the beneficiary repay the entire remaining amount of the financing early? Will they incur the term cost for the remaining period?

The beneficiary can repay the entire remaining balance of the financing amount early at any time without incurring the term cost for the remaining period. However, the financing entity should be compensated for reinvestment costs, which should not exceed the term cost for the three months following the repayment, plus any payments made to a third party due to the financing contract.

4. Can the beneficiary repay part of the remaining financing amount early?

There are no regulations or implementing regulations that prevent early repayment of part of the remaining financing amount. The updated consumer financing regulations require the financing entity to accept any partial repayment under the financing contract before its due date, equivalent to one installment or its multiples.

5. Is there a specific period that must elapse before early repayment is allowed?

The real estate financing contract may specify a period during which early repayment is prohibited, provided that this period does not exceed two years from the date of the real estate financing contract. This also applies to leasing if the contract concerns real estate.

6. Can the financing entity refuse early repayment of the remaining financing amount?

The financing entity cannot refuse early repayment of the remaining financing amount if the beneficiary requests it. However, the real estate financing contract may specify a period during which early repayment is prohibited, provided this period does not exceed two years from the date of the financing contract.

7. What compensations can the financing entity receive in case of early repayment of the remaining financing amount?

The financing entity is entitled to compensation from the beneficiary in case of early repayment for:

1.	Reinvestment costs, which should not exceed the term cost for the three months following the repayment, calculated based on the declining balance.
2.	Any expenses paid by the financing entity to a third party due to the financing contract, under the following conditions:
a.	The payments were made to a third party and not compensated by the beneficiary.
b.	These payments are documented in the financing file.
c.	The payments cannot be recovered from the third party.
d.	Compensation is calculated based on the remaining term of the financing contract.

Soft Launch

Consumer Protection and Financial Conduct

Financial Consumer Protection Principles and Rules

Section 1: Introduction, Purpose and Definitions

Introduction

Purpose

Definitions

Section 2: Consumer Protection Principles

Principle 1: Equitable and Fair Treatment

Principle 2: Disclosure and Transparency

Principle 3: Education and Awareness

Principle 4: Behavior and Work Ethic

Principle 5: Protection Against Fraud and Misuse

Principle 6: Protection of Data and Information Privacy

Principle 7: Complaints Handling

Principle 8: Competition

Principle 9: Outsourcing

Principle 10: Conflict of Interest

Section 3: General Conduct Rules

Section 4: Specific Conduct Rules

Section 5: Concluding Provisions

Instructions for Services Provided to Persons with Disabilities in Financial Institutions

I. Introduction

A. Purpose

B. Scope

II. Definitions

III. Instructions on Services Provided for People with Disabilities

1. Unit for People with Disabilities

2. Built Environment

3. Verification of Disability

4. Products and Services

5. Self-Service Kiosks and Electronic Services

6. Transparent and Fair Treatment for People with Disabilities

7. Financial Education and Awareness Provided for People with Disabilities

8. General Provisions

Principles of Conduct and Work Ethics in Financial Institutions

I. Introduction

A. Purpose

B. Scope and Application

II. Definitions

III. Principles of Conduct and Work Ethics

A. Compliance with Professional Conduct and Public Morals

B. Interaction with Stakeholders

C. Combating Financial and Administrative Corruption

1. Combating Money Laundering and Terrorist Financing Crimes and Suspicious Transactions

2. Dealing with Bribery and Corruption

D. Gifts and Hospitality

E. Compliance with Laws, Regulations, Instructions and Policies

F. Dealing with Conflicts of Interest

G. Confidentiality and Disclosure Mechanisms

H. Use and Leakage of Insider Information for Market Manipulation:

I. Whistleblowing

J. Remuneration and Compensation

IV. Consequences of Non-Compliance with the Principles of Conduct and Work Ethics

Rules for Advertising Products and Services Provided by Financial Institutions

Introduction

Scope of Application

Definitions

Purpose

Compliance with Relevant Laws, Regulations and Instructions

Rules and Procedures

Concluding Provisions

Consumer Complaints

The Unified Form for Responding to Complaints Received Through the “SAMACares” System

Measuring Performance Indicators of Financial Entities

SAMACares Announcement

A Guide for Calculating the Early Payment Amount

Introduction

Early Repayment

Key Conditions for Calculating the Early Repayment Amount

Examples of Early Repayment Amount Calculation

Frequently Asked Questions