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  • Part Six: Internal Organizing

    • Article 31

      The Finance Company must establish appropriate written organizational policies, that includes work manuals and workflow procedures. Those policies must be kept up to date on a regular basis and they must be communicated to the concerned staff in a suitable and timely manner. The organizational policies must include rules for at least the following:

       1.The organizational and operational structure, decision making and responsibilities;
       2.Credit granting and operations;
       3.Financial management and accounting;
       4.Marketing and sales;
       5.Information technology and security;
       6.Customer service and collection;
       7.Identifying, assessing, treating, monitoring and disclosing risks;
       8.Internal supervision system;
       9.Internal audit;
       10.Committing to the related laws, regulations and instructions ;
       11.Assigning tasks to external service providers; and
       12.Salaries, bonuses and incentives, including the salaries of members of Senior Management and staff and their motivation and remuneration of the Board and its committees.

    • Article 32

      It is prohibited in the Finance Company to combine an executive function such as financing or hedging and oversight function such as internal auditing or accounting tasks. A separation of functions must be adopted in a manner that ensures the application of the generally accepted policies, procedures, and technical standards, to protect the Finance Company’s assets and funds, and avoid fraud and embezzlement.

    • Article 33

       1.The Finance Company’s technical facilities and related systems must be adequate according to industry standards for the Finance Company’s operational needs, the nature of its activities, and risk situation.
       2.Information technology systems and the related processes must be designed in a manner that ensures data integrity, availability, authenticity and confidentiality. Information technology systems and the related processes must be assessed on a regular basis in accordance to the general accepted technical standards and tested before they are used for the first time and after any changes have been made.
       3.The Finance Company must establish a business continuity plan for emergency cases that ensures an alternative solution to re-operate in an appropriate period of time.

    • Article 34

      All business documents, records and files must be kept in an orderly, transparent and safe manner by the Finance Company. They must be kept up to date and completed and retained for at least ten years from the date of termination of the client’s relationship.

    • Article 35

      The Finance Company must have sufficient and eligible staff regarding knowledge and experience in order to fulfill its operational needs, business activities and risks situation. The remuneration and incentives of staff must be fair and aligned with the Finance Company’s risk management strategy and must not create conflicting interests.

    • Article 36

       1.At least (50%) of all employees of the Finance Company must be Saudi nationals when the Finance Company starts operations. The (50%) minimum applies to all departments and organizational levels.
       2.The percentage of Saudi nationals of total human resources shall be annually increased by (5%) of all employees until (75%) has been reached. SAMA may determine the minimum required annual increase thereafter.
       3.Recruitment of non-Saudis in the Finance Company shall be limited to jobs that require expertise not available in the Saudi labor market. In all cases, the Finance Company must obtain a non-objection letter from SAMA before appointing any non-Saudi employee in supervision departments provided that the Company has proved the lack of Saudis for the vacant position.*

      * This paragraph has been amended in accordance with His Excellency the Governor's Decision No. 72/M SH T, dated 20/06/1440H.