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  • Governance and Internal Control

    • Governance Controls of the Money Exchange Sector

      1.Exchange centers shall set and develop internal governance regulations and shall obtain approval thereof by the owners or the Board - as the case may be - and shall set adequate and appropriate policies and procedures for supervision and control of the center’s performance. They shall ensure that employees comply with these regulations, and shall provide the Central Bank with a copy thereof, upon their approval or upon introducing any subsequent amendments thereto, within 21 working days from the date of their approval or amendment. Such regulations shall include the following controls, as a minimum:
       
       a.A description of the organizational structure, including the departments, functions, tasks, and responsibilities of each thereof;
       
       b.Policies and procedures that prevent or limit any activity or relationship that may affect the implementation of governance principles;
       
       c.A policy for reporting violations pursuant to the Central Bank’s instructions in this regard; the Central Bank shall be furnished with a copy of this policy;
       
       d.Controls for independence and separation of tasks;
       
       e.Responsibility and accountability limits;
       
       f.Provisions related to the prevention of an expected or actual conflict of interest, and the mechanism for dealing with such case upon its occurrence;
       
       g.A description of the compliance function;
       
       h.A description of the internal control function;
       
       i.Provisions of integrity and transparency;
       
       j.Compliance with the relevant laws, regulations and instructions;
       
       k.Means of maintaining the confidentiality of information;
       
       l.Provisions of fair dealings;
       
       m.Controls for protecting the assets of the exchange center;
       
       n.Provisions related to the compliance of exchange centers with the principles of fair competition and the prevention of monopoly and
       
       o.Provisions related to compliance with the center's policies of professional conduct and work ethics.
       
      2.The exchange center shall monitor the risks related to the center's business activities, such as currency risk and exposure, shall follow up on the currency movement and inventory, and shall prepare reports thereon. Such reports shall be approved by the owners or the Board of Directors.
       
      3.The owner or the Board shall inform the Central Bank of any penalties imposed on the exchange center by any supervisory, regulatory or judicial authority within a period of five working days from the date of imposing the penalty.

      In accordance with chapter 1.3 of the "Key Principles of Governance in Financial Institutions", issued by SAMA circular No (42081293) dated 30/06/2021, and subject to the mandatory provisions stipulated in relevant laws and regulations, the "Key Principles of Governance in Financial Institutions", shall apply as guiding rules to money exchange companies. The Central Bank may, at any time, enforce all or some of the provisions of these principles on a mandatory basis.

      The provisions contained in "the Governance Controls of the Money Exchange Sectors" shall apply to money exchange companies and institutions on a mandatory basis.

       

       

    • Requirements for Appointments to Senior Positions

      To read the Requirements for Appointments to Senior Positions, click here.