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  • Part Seventeen: Audit and Inspection

    • Article 74

       1.The Finance Company must obtain a prior non-objecting letter from SAMA before appointing an external auditor. SAMA has the right to require the Finance Company to appoint another auditor if the size and nature of the company’s operation so requires. 
       2.SAMA may require the Finance Company to replace its external auditor or may appoint another external auditor at the expense of the Finance Company in any of the following cases: 
        a.When necessary due to the size or the nature of the business;
        b.The external auditor has committed a breach of professional obligations;
        c.There is a reason to believe that the external auditor has a conflict of interest; or
        d.When necessary for the protection of the Finance sector or governance considerations and the protection of shareholder’s interest.
       3.The external auditor must report to SAMA immediately all facts of which he obtains knowledge in the course of an audit and which: 
        a.Might justify the reservation in the audit report or refrain from expressing opinion;
        b.Jeopardize the existence of the Finance Company;
        c.Seriously impair the Finance Company’s development, or
        d.Indicate that the managers have breached any laws, regulations, instructions applicable in the Kingdom of Saudi Arabia or the by-laws of the Finance Company.
        e.Terminate the agreement before it ends with the reasons thereupon.
       4.SAMA may require the external auditor to explain his report or to reveal other facts that may have come to his attention during the audit which indicates any violation of the laws, the regulations, the instructions or the by-laws of the Finance Company. 

    • Article 75

      1.The Finance Company, its Board members, and employees must provide all information and documentation concerning the Finance Company, its business, its shareholders, and its personnel, that SAMA may request at any time.

      2. SAMA has the right to inspect the records and accounts of the Finance Company, through SAMA’s personnel or by auditors appointed by SAMA, provided that the inspection shall be at the Finance Company’s premises.

      3.The Finance Company and its employees shall facilitate the task of whom SAMA appoints for inspection and cooperate with them particularly as follows:
        a.Provide the inspector with the Finance Company’s records, accounts, and documents that he deems necessary to perform his task;
        b.Provide information and explanations as required by the inspector.
        c.Disclose any violations or irregularities in the Finance Company’s operations to the inspector at the beginning of his mission.
        d.Adhere to the recommendations and instructions given by SAMA to the Finance Company to address the uncovered observations through the inspection’s rounds.
      4. The Finance Company and any of its employees may not hide or attempt to hide any information or irregularities or fail to provide any clarifications requested by the appointed inspector or neglect to provide him with requested information and documents on time.
      5. SAMA’s employees in charge of the supervision, control, and inspection shall not be vulnerable to any claims as a result of performing their duties.

    • Article 76

       1.Every violation of the provisions of the Law and the Regulation or the non-compliance to any of the rules or circulars issued by SAMA is a violation related to the professional irregularity referred to in Article 29 of the Law; 
       2.every violation that endanger the shareholders of the Finance Company or their creditors as referred to in Article 29 of the Law, is as follows: 
        A.There is a material adverse change in the business, or in the financial or legal or administrative situation of the Finance Company that might endangers its existence or its ability to pay its debts as they fall due;
        B.The Finance Company incurs a loss amounting to one-half of its paid- up capital;
        C.The Finance Company incurs a loss amounting to more than (10%) of its paid-up capital in each of at least four consecutive fiscal years; or

    • Article 77

      The Finance Company must reimburse all costs of a third party appointed by SAMA as a consequence of procedures taken under this Part.