Section Six: Supervision of Banking Agents
Article 25: Key Inspection and Supervision Procedures
a. Banks shall be held fully liable for the actions and compliance of their Agents. In addition, Banks must, at least, have in place adequate technological systems for risk management, consumer protection, AML/CFT, and combating embezzlement and financial fraud. It is the responsibility of the Bank’s board of directors to ensure the following:
1. Bank’s policies and procedures are comprehensive and reflect all of SAMA regulatory requirements;
2. Mechanisms are established to ensure that relevant departments of the Bank implement all the necessary provisions of SAMA instructions; and
3. Monitoring of Agents’ activities matches any risks posed to the Bank.
b. Banks must take all other measures, including onsite visits undertaken by their staff or authorized persons to ensure that Agents operate strictly within the requirements of the law, guidelines and Agent Banking contract.
c. Banks must formulate internal audit policy to monitor and control their Agents and must conduct monitoring visits to the Agent’s outlets at regular intervals to ensure that the Agents are working in accordance with the terms and conditions of the contract, rules, regulations, and instructions issued by SAMA. A report of each visit must be prepared and submitted to SAMA upon its request or with the overall annual report prescribed in Article 30.
d. SAMA will monitor the Bank-Agent relationship and its compliance with laid down instructions. SAMA has the right to carry out monitoring visits at any time to any of the Agent’s outlets.
e. SAMA shall have free, full, and unfettered access to the internal systems, documents, reports, records, staff and premises of the Agent at any time as far as the Agent Banking business is concerned. SAMA shall exercise such powers as it may deem necessary.
f. Notwithstanding Banks' responsibility to monitor and supervise their Agents, as set forth in Clause (a) of Article 25, SAMA may, at any time and as it may deem necessary, perform the following:
1. Requesting information and data directly from Agents;
2. Carrying out full-scope or thematic inspection, with regard to Agent Banking, of the records and premises of the Agent;
3. Directing an Agent to take specific actions or desist from specific practices;
4. Ordering the termination of the Agent Banking contract;
5. Directing the Bank to take specific actions against the Agent;
6. Directing the Bank to take remedial actions as a result of the conduct of an Agent; and
7. Any other guidelines, procedures and/or requirements as SAMA may deem appropriate.
Article 26: Off-site Inspection
SAMA, based on reports submitted to it, will carry out off-site monitoring of banking Agents’ business to assess and monitor risks (particularly material risks) and compliance with laws, regulations and instructions that SAMA supervises their implementation.
Article 27: On-Site Inspection
1. SAMA may conduct onsite inspections, as it may deem appropriate and at any time, carried out by its staff or appointed individuals.
2. The Bank and the Agent shall submit documents requested by SAMA staff or appointed individuals in the form and at the time they determine.
Article 28: Random Inspection
SAMA may make both random and targeted visits to Agent’s premises as it may deem necessary at any time (based on a standard sampling method or on reports identifying Agents that have been the subject of multiple complaints). The visits are aimed at examining the compliance of the Agent with all requirements prescribed herein, including those related to consumer protection.