Miscellaneous Regulations (CB)
SAMA’s Non-Objection Not Needed For Membership Agreements With "Fintechs" Supervised By SAMA Or CMA
Further to the instructions of SAMA issued under circular number (43035895) dated 20/4/1443H, which include the requirement to obtain the written non-objection of SAMA before concluding membership agreements with any entity other than financial institutions subject to the supervision and oversight of SAMA.
We inform you that credit bureau can sign membership agreements with fintech companies that have obtained or applied for a license/permit to engage in one of the activities subject to the supervision of SAMA or the Capital Market Authority without the need to obtain a no-objection certificate from SAMA, provided that they adhere to the following:
- The credit bureau verifies the existence of a request from the fintech company to obtain a license/authorization from SAMA or the Capital Market Authority before entering into the agreement.
- The activity of the fintech company, which it seeks to engage in, must involve entering into a credit relationship with the consumer upon commencement of the activity.
- The rights and obligations outlined in the membership agreement, including access to consumers' records or credit information, shall not be effective except after obtaining a copy of the license/permission to carry out the activity.
- In the event that financial technology companies cease their activities, or their license/authorization ends for any reason, such companies are only permitted to update the information of records they have dealings with their owners, without being allowed to inquire about information of new consumers.
SAMA emphasizes that the full responsibility lies with the credit bureau to adhere to what is mentioned above and to fully comply with the provisions of Credit Information Law and Its Implementing regulation and the relevant instructions issued by SAMA.
Ensuring SAMA’s NOC is Received before Sharing Information, Data, and Statistics with Various Entities
Referring to the Credit Information Law issued by Royal Decree No. (M/37) dated 5/7/1429H and its Implementing Regulations, and the importance and sensitivity of the information and data obtained by credit information companies under their mandates.
SAMA emphasizes the necessity of obtaining SAMA's non- objection before sharing any data or statistics to governmental or non-governmental entities, except for what is included in the agreements signed with members based on the Credit Information Law and its Implementing Regulations.