Consumer Protection
Regulations for Establishing Customer Care Departments in Banks
No: 44069265 Date(g): 21/3/2023 | Date(h): 29/8/1444 Status: In-Force Translated Document
Based on the Saudi Central Bank Law issued by Royal Decree No. (M/36) dated 11/4/1442 H, and referring to the Central Bank Circular No. (351000145194) dated 26/11/1435 H, which accompanies the update of the regulations for handling and establishing complaint units in banks.
These regulations for establishing Customer Care Departments in banks replace the aforementioned regulations and aim to define the minimum instructions that banks must adhere to in order to ensure due care for customers.
For your information and implementation effective from 15/07/2023 G.
Introduction
The Central Bank is the authority responsible for monitoring and overseeing the banks licensed by it. It has regulatory powers that include framing and organizing matters related to the rights of customers of these banks and ensuring their care, based on the Saudi Central Bank Law issued by Royal Decree No. (M/36) dated 11/4/1442 H and its Article No. 4 of which states: "The Bank shall carry out its duties in accordance with the provisions of this Law, the regulations and policies issued by the Board, and best international standards and practices. To achieve its objectives, the Bank shall have all the necessary powers and carry out the following duties, powers, and competences: ...9 Issuing directives and developing procedures to protect consumers of financial institutions." Additionally, the Banking Control Law issued by Royal Decree No. (M/5) dated 22/2/1386 H and its amendments, which granted Central Bank the authority to set the conditions and requirements that banks must observe when dealing with customers.
Customer care, handling complaints, and financial education are among the key principles outlined in the Financial Consumer Protection Principles and Rules. This involves enabling customers to access complaint resolution mechanisms easily and enhancing their financial literacy and awareness through the bank. The bank should also facilitate customers' access to clear information regarding their protection, rights, and responsibilities. Moreover, the bank should establish appropriate mechanisms to help customers develop an understanding of the risks associated with the products offered by the bank, allowing them to make suitable choices based on their needs.
To achieve the goals related to the care of customers of banks operating in the Kingdom, the Central Bank issues these instructions, which represent the minimum standards that banks must adhere to in order to ensure due care for customers.
Scope of Application
These regulations apply to banks operating in the Kingdom and licensed by the Saudi Central Bank.
Definitions
Term Definition Central Bank The Saudi Central Bank. Bank Banks licensed to conduct banking activities in the Kingdom in accordance with the provisions of the Banking Control Law. Administration Customer Care Department. Customer An individual or entity receiving services and products from the bank. Complaint Any expression of dissatisfaction related to the provided service, whether justified or unjustified, written or verbal. Inquiry A customer's request for information about the services or products offered by the bank. Request A request made by a customer to obtain a product or service provided by the bank. Electronic System The bank's electronic system for recording complaints and inquiries. Section One: Responsibilities, Policies, and Procedures of the Department
1. Establishment of the Department
1-1 The department shall be established by a decision of the bank's Board of Directors and shall report directly to the highest executive position in the bank, whether the CEO, General Manager, or Managing Director. In the case of temporary absence of this position, the department shall report to their deputy, and it should not be administratively linked to any other department within the bank.
1-2 The department shall be granted the necessary powers, financial, technical, and human resources support to perform its duties efficiently and with high quality.
1-3 The department must consist of at least three units (the bank determines the level of each unit based on its business volume and number of customers): the Complaints Handling Unit, the Quality and Performance Analysis Unit, and the Financial and Educational Awareness Unit.
1-4 Without prejudice to the provisions regarding the Requirements for Appointments to Senior Positions in financial institutions under the supervision of the Central Bank, the bank must obtain written approval from the Central Bank before appointing or assigning a manager to the department.
2. Responsibilities of the Department
2-1 Protecting bank customers.
2-2 Handling customer complaints efficiently and with high quality.
2-3 Responding to any inquiries received.
2-4 Increasing customer satisfaction in the complaint resolution process.
2-5 Addressing and reducing the sources of complaints.
2-6 Enhancing customer awareness of the products and services offered by the bank.
2-7 Developing and updating policies and procedures in accordance with the best local and international practices in customer protection.
3. Policies and Procedures of the Department
3-1 The department must develop the following policies:
- A policy for analyzing complaints and their patterns, addressing their causes and sources (Root Cause Analysis), and obtaining approval from the authorized person in the bank. This policy should also include measuring its effectiveness in addressing the sources of recurring complaints.
- A policy for protecting customer rights and ensuring their care throughout all stages of their interaction with the bank (e.g., marketing and sales procedures, post-sale service quality assurance procedures, complaint handling procedures, customer communication procedures, and credit advisory services procedures).
- A policy for awareness and financial education for the bank’s customers that aligns with the products and services offered by the bank. This policy should include at least the role of the employee responsible for providing a comprehensive explanation of the product or service to the customer, including all obligations associated with that service or product.
3-2 The department manager, or their delegate, must have full authority to make decisions regarding the resolution of complaints with amounts not exceeding SAR 20,000. The bank must establish policies and procedures to organize and monitor this process.
3-3 The department must develop and periodically update (at least once every two years) its operational mechanisms with relevant departments, including service level agreements and escalation processes, to ensure that complaints are handled within regulatory time frames. This mechanism should be technically activated and used to measure compliance, including escalation to the highest executive level.
3-4 To ensure the efficiency and effectiveness of handling complaints, inquiries, and requests, the department should include the following definitions in its internal policies related to customer rights protection and ensure compliance with them: (complaint, inquiry, request, customer), in line with the definitions provided in these regulations.
4. Department Personnel and Their Qualifications
4-1 The bank must employ an appropriate number of staff in the department and its units, commensurate with the number of customers, products, services provided by the bank, and the volume of complaints. An analytical capacity study (Capacity Analysis) should be conducted at least once a year.
4-2 The department manager and staff must have sufficient knowledge and experience in customer care. They should, at a minimum, hold certifications in basic retail banking and credit advisory. The bank is also required to continuously train them through relevant programs suitable for their work, at least once a year. Additionally, the bank must ensure that department staff are well-versed in customer service skills, the bank’s products and services, and the regulations and instructions governing the relationship between customers and the bank.
Section Two: Department Units and Their Responsibilities
First: Complaints Handling Unit
- The unit must provide multiple channels for receiving and handling complaints efficiently and effectively. This should enable customers to submit complaints according to their preferences with ease and at times that are convenient for them. These channels should be clearly displayed on the bank’s website homepage and various platforms. The channels must include at least:Free telephone line,Website,Mobile applications,Email,Branches
The unit must have systems and technical programs that support documenting and tracking the complaint handling process by date and time, allowing for visibility of its status and the actions taken. These systems must, at a minimum, include:
2-1 Recording complaints and documenting their receipt, retaining records, and tracking them through all stages of processing. The customer should be provided with a primary reference number and the processing time frame via a text message on their mobile phone registered with the bank.
2-2 The ability for the customer to register complaints directly in the electronic system, view the final result of the handling process and detailed updates, and receive necessary documents if required.
2-3 Classifying complaints in the electronic system according to the bank’s products and services in line with the relevant central bank instructions.
2-4 Enabling customers to evaluate their satisfaction with the complaint handling results automatically.
2-5 Providing real-time report generation and the ability to automatically submit reports to senior management for performance monitoring.
2-6 Facilitating automatic direct linkage to any databases created by the central bank for supervisory and regulatory purposes.
- The unit must handle complaints within a maximum period of 5 working days from the date of receipt from the customer.
- The unit must establish performance indicators for complaint handling and work on monitoring these indicators to achieve the desired goals. Indicators should, at a minimum, include:
Name of the Indicator Description of the Indicator Desired Objective* Customer Satisfaction Rate with Complaint Handling
Number of Complaints Rated as Satisfied/Agreeable by the Customer Out of Total Complaints Not Less Than 85% Service Level Agreement Compliance Rate Number of Complaints for Which the Bank Was Late in Processing Within the Regulatory Period Out of Total Complaints Not Less Than 95% * The central bank may review and adjust the rates of the above indicators from time to time.
Second: Quality and Performance Analysis Unit
1. The unit must review the quality of the complaint handling procedures and ensure they are processed efficiently and with high quality in accordance with relevant regulations and instructions. It should take corrective actions for complaints that have been handled incorrectly and implement necessary procedures to prevent recurrence.
2. The unit must continuously analyze complaint data and provide corrective plans to address the sources of complaints and measure their effectiveness. These reports should be documented and submitted to the administration manager to be forwarded to the CEO on a monthly basis.
3. The unit must ensure the accuracy of the reports and data contained within them.
4. The unit should submit quarterly reports to the administration manager for forwarding to senior management and the bank's board of directors, covering customer care issues. These reports should, at a minimum, include the following:
- Performance measurement indicators for complaints registered in the "SAMACARES" System.
- Performance measurement indicators for complaints received directly by the bank.
- Compliance of relevant departments with the service level agreement.
- Common complaints during the period.
- Challenges faced by the administration and the approach to addressing them.
Third: Financial Awareness and Education Unit
- The unit must continuously raise customer awareness through all available bank channels and implement annual plans for financial awareness and education. These plans should include, at a minimum: products and services and their risks, fraud, savings, and financial planning.
- The unit must continuously inform customers about all channels for submitting complaints and their right to raise complaints and inquiries. It should also inform them about the possibility of requesting credit advisory services, in cases where the bank is not obligated to provide a credit advisor.
- Unit employees are prohibited from contacting customers for the purpose of marketing the bank's products and services.
The unit should submit semi-annual reports to the administration manager for forwarding to the CEO, which should include the following:
- The number of contacts received by the unit.
- The types of consultations provided to customers.
- Measurement of customer satisfaction regarding the appropriateness of the consultations provided.
Final Provisions
- These instructions are considered a minimum standard for what the bank must do to ensure due diligence in customer care and handle complaints and inquiries efficiently and with high quality. They are closely related to the Financial Consumer Protection Principles and Rules.
- Without prejudice to the provisions outlined in the Principles of Internal Auditing for Local Banks Operating in Saudi Arabia, as well as the Principles of compliance for commercial banks operating in the Kingdom of Saudi Arabia; the management must undergo annual review and audit by the Internal Audit Department and the Compliance Department.
- The management must obtain and renew annually the Customer Complaint Management System certification (ISO 10002), in addition to applying the international standard (ISO 10004) related to measuring and monitoring customer satisfaction.
- These instructions replace the controls for establishing complaint units issued under the Central Bank circular number (351000145194) dated 26/11/1435 H.
- All provisions of these instructions shall be effective from the date 15/07/2023 G.
Financial Consumer Protection Principles and Rules
To read the “Financial Consumer Protection Principles and Rules”, click here.
Debt Collection Regulations and Procedures for Individual Customers
No: 391000083340 Date(g): 11/4/2018 | Date(h): 26/7/1439 Status: In-Force I. Introduction
1. General Framework
The general framework of these Regulations includes:
• Controls governing communication with retail consumers and their guarantors.
• Debt collection procedures.
• Procedures for dealing with defaulting retail consumers.
2. Objectives
These Regulations aim at governing the mechanism of debt collection and communication with retail consumers and their guarantors in a manner that enables creditors to follow clear and specific procedures while protecting the rights of all relevant parties.
3. Scope
These Regulations shall apply to banks and finance companies supervised by SAMA.
II. Definitions
Term Definition SAMA
Saudi Central Bank*
Creditor Banks and finance companies supervised by SAMA. Individual Customers Any natural person who obtains financing from a creditor. Debt collection The process of collecting amounts payable by a retail consumer on due dates by a creditor. Default The non-payment of a retail consumer of the monthly installments agreed upon in the finance contract for three consecutive months or more than five separate months throughout the finance period. Complaint Any expression, written or verbal, entailing dissatisfaction with the provided services, whether such dissatisfaction is justified or not. Third party An entity contracted by a creditor to provide, on its behalf, any services which used to be provided by the said creditor or to provide a new service to be launched. Such entity can act as a unit or subsidiary of the creditor or operate independently. Employee Any natural person, including directly contracted employees or outsourced employees, working for a creditor and is subject to its administration or supervision in return for a financial consideration. Authenticated communication A recorded, verifiable means of communication that can be retrieved in written or electronic format. Compelling change in circumstances Any event that causes an uncontrollable change in a retail consumer's circumstances, including without limitation: the inability to work (partially or totally), retirement (compulsory), and loss of a job or some fixed allowances given to employees by employers monthly. Voluntary change in circumstances Any event that causes a change in the circumstances of a retail consumer on their own volition, including without limitation: Retirement (voluntary) and change of jobs. Guarantor Any natural or juristic person who guarantees or promises to guarantee the fulfillment of any financing extended to a retail consumer, according to a written acknowledgement, in the event that they become unable to do so. Day Any day in a month, including weekends and holidays. * The "Saudi Arabian Monetary Agency" was replaced By the "Saudi Central Bank" in accordance with The Saudi Central Bank Law No. (M/36), dated 11/04/1442H, corresponding in 26/11/2020G.
III. Relevant Laws and Instructions
IV. Content of the Regulations
1. Communication with Retail Consumers
A creditor must apply due diligence when communicating with a retail consumer before seeking recourse in competent judicial authorities, while observing the following:
1.1 Authenticated means of communication that a creditor has the right to use when communicating with a consumer or their guarantor are limited to:
- E-mail.
- Registered mail.
- National address.
- SMS messages.
- Phone calls.
1.2 The communication message must include at minimum:
- The creditor’s name and the department concerned with the collection of defaulted payments.
- The contact number of the concerned department and/or the third party.
- Working hours of the concerned department and/or the third party.
- Name of the employee, the creditor and/or the third party if a consumer is contacted through a phone call.
1.3 A creditor must commit to the following:
- The number of attempts to contact a consumer through their phone number must not exceed ten attempts’ within a period of 30 days, and the retail consumer should have the ability to call back the same number used as used by the creditor in attempting to reach them.
- All phone calls received from or made to a retail consumer must be documented and records thereof should be maintained for no less than ten years from the date of the phone call. A retail consumer must be notified at the beginning of the phone call that it is recorded.
- A retail consumer should be able to rate their satisfaction at the end of the phone call (incoming and outgoing), which must also be documented electronically.
- There must be standards in place to ensure that employees provide consumers with correct information with the utmost professionalism regarding their current default status and the legal actions to which a creditor is entitled to pursue.
- A retail consumer must not be provided with inaccurate or illegal information regarding the consequences of default.
- A retail consumer must not be reached through envelopes with phrases indicating that the content is information on debt collection or similar
- A retail consumer’s financial and personal information should be protected, kept confidential, and not be used except for specific professional and legal purposes with the prior consent of the retail consumer. In addition, communication should not be made with any person other than the retail consumer or their guarantor, and in the case of phones calls, the identity of the person answering must be verified.
1.4 In the event that a retail consumer objects to the due amount of payment, a creditor shall:
- Document such objection.
- Submit a complaint of the retail consumer as per SAMA’s instruction in this regard.
- Provide the retail consumer with the estimated period for resolution of their complaint, provided that it does not exceed the statutory period set for resolution of complaints.
- Not communicate with the retail consumer to remind them of defaulted payments until the complaint has been resolved.
- Advise the retail consumer of the escalation mechanism in place and direct them to the relevant entity in the case of dissatisfaction with the result of resolution and desire to escalate the complaint.
- Develop a policy for the analysis of complaints and objections, along with their patterns, to address their root causes. The department concerned with the resolution of complaints shall document such reports and measure their efficiency in resolving the root causes of frequent complaints.
- Develop work procedures with relevant departments that cover service level agreements and escalation mechanisms to ensure that retail consumers’ objections and complaints are resolved within the statutory period, provided that the mechanism is documented electronically and the departments’ level of compliance with such mechanism is measured.
1.5 The department concerned with debt collection and communication and/or the third party must be subject to review and audit by both the internal audit and the compliance departments at the bank or finance company on an ongoing basis in order to ensure the soundness of procedures followed and their conformity with these Regulations and the relevant instructions.
2. Debt Collection Procedures
2.1 A bank must not:
- Deduct any amounts from a retail consumer’s accounts without a judicial order or ruling or without the retail consumer’s prior consent, or if provided otherwise in the finance contract.
- Block accounts or balances of a retail consumer, even if temporarily, and deny them access to funds available in their accounts without a judicial order or ruling.
- Deduct more than one monthly installment for each loan within a single pay cycle, unless there is a judicial order or ruling or prior consent is obtained from the retail consumer.
- Deduct a monthly installment before the due date agreed upon or withhold an installment payment before the due date, as agreed in the financing contract.
- Withhold or deduct end-of-service gratuities payable to retail consumers, unless a judicial order or ruling was issued in this regard.
2.2 A creditors must set the date of deduction in accordance with the monthly payday, provided that such date is specified in the payment schedule or as may be agreed upon with the retail consumer through any of the authenticated communication means.
2.3 A creditor must deduct the monthly installment on the agreed date of deduction. If it is proved that a creditor does not comply with the agreed date of deduction, they shall extend the finance period by a similar term to be added at the end of the period, without any term cost or additional fees, and notify the retail consumer of the same through authenticated communication means.
2.4 A bank, as per requested by a retail consumer, must reschedule the debt when a compelling change in the circumstances of the retail consumer is proved, without granting any new loan, charging extra fees or changing the term cost. A bank must carry out the rescheduling within a period not exceeding 30 days from the date the individual customer is provided with the necessary documents. This excludes asset-backed finance contracts.
2.5 A bank, as per requested by a retail consumer, must reschedule the debt in the case that voluntary changes in a retail consumer’s circumstances are proved, with the potentiality to change the term cost but without charging additional fees. Debt rescheduling must be carried out within a period not more than 30 days from the date the necessary documents are supplied by the individual customer. This excludes asset-backed finance contracts.
3. Procedures for Dealing with Defaulting Consumers
3.1 A creditor must be entitled to take legal actions against any defaulting retail consumer at the competent judicial authorities, and such retail consumer must be notified in the event of default for more than three consecutive months or five separate months throughout the finance period. The last attempt to contact such consumer must be through their national address.
3.2 Upon the issuance of a judicial order or ruling against a defaulting retail consumer, a creditor must comply with the said order or ruling, unless both parties (creditor and retail consumer) agree otherwise (for example without limitation, settlement of debt between both parties, debt rescheduling, etc.).
3.3 A creditor must take in their consideration the circumstances of any defaulting individual customer that was issued an enforceable judicial ruling against them in favor of the creditor, when providing the necessary guarantees by making available the option of debt rescheduling, with the potentiality to change the term cost and without charging additional fees.
V. General Provisions
1. For a contract concluded on 01/10/2018:
1.1 Unless the two parties agree not to apply any of the following exceptions, a creditor must exempt the individual customer from payment of the amounts due under the finance contract in the event of death or total disability. Such exemption shall take effect, at most, 30 days from the date of receipt of the relevant documents. Any amounts deducted after the date of death or that total disability medically certified shall be returned. This excludes commercial finance contracts and cases of death or total disability arising from:
- Deliberate self-injury or suicide attempt, whether the retail consumer has sound mental health or is suffering from mental disorders at the time of the incident.
- Natural disasters.
- Rulings issued by courts or competent judicial authorities pursuant to laws applicable Saudi Arabia.
- Consumption of alcohol, narcotics or illegal drugs.
- Participation, or training to participate, in dangerous sports or competitions such as horse or car racing.
- Job-related death or injury.
- Damage directly or indirectly caused by nuclear weapons, ionizing radiations, radioactive contamination resulting from any nuclear fuel or waste, contamination due to nuclear fuel combustion, war, invasion, acts of foreign enemy, hostilities, warlike acts, or acts of vandalism and terrorism committed by person(s) working individually, on behalf of, or in relation with any terrorist organization.
1.2 A creditor must not impose delay penalties or debt collection fees in excess of the amount due as they should, at most, equal the value of a single installment throughout the finance period.
2. A creditor must ensure that a retail consumer fully understands the potential risks associated regarding non-compliance with the terms and conditions pertaining to finance products.
3. Before extending financing, a creditor must evaluate the creditworthiness of the retail consumer and ascertain their ability to fulfil their payment obligations throughout the contract period. Such creditor must also take into account the retail consumer’s ability to make the final payment, if covered in the finance contract, in addition to potential changes to their credit status (e.g. voluntary / compulsory retirement, unstable allowances).
4. These Regulations set the minimum due diligence obligations to be met by a creditor as they must continuously work on developing their own internal procedures, in line with the nature and size of their business and in accordance with the best local and international standards and practices, with no prejudice to these Regulations and the relevant instructions.
5. These Regulations form an updated version of previous regulations and/or instructions issued in this connection, and shall be binding on creditors and/or third parties. In addition, all creditors and third parties must update their policies and procedures in line with these Regulations. In the event of non-compliance therewith, neither a creditor nor a third party must be exonerated from liability.
6. Subject to Paragraph (1) of Item (5) herein, these Regulations must apply to all existing and future contracts.
Instructions for services provided to persons with disabilities in financial institutions
To read the “Instructions for services provided to persons with disabilities in financial institutions”, click here.
Code of Conduct and Work Ethics in Financial Institutions
To read the “Code of Conduct and Work Ethics in Financial Institutions”, click here.
Rules for Advertising Products and Services Provided by Financial Institutions
To read the “Rules for Advertising Products and Services Provided by Financial Institutions”, click here.
License Disclosure Instructions
To read the “License Disclosure Instructions”, click here.
A Guide for Calculating the Early Payment Amount
To read the “Guide for Calculating the Early Payment Amount”, click here.
Disclosure of Interest Rates on Financing and Savings Products
No: 41068291 Date(g): 22/7/2020 | Date(h): 2/12/1441 Status: In-Force 1. Introduction
The purpose of these Rules is to provide transparency to the market in terms of APR/AER of various products that Banks and finance companies offer for Retail, Micro and Small enterprises as defined by SAMA. This will further allow Retail, Micro and Small Enterprises to compare APR/AER between different financing and savings products offered by Banks and Finance Companies.
SAMA has issued this update of Disclosure of Interest Rates on Financing and Savings Products that supersede SAMA's circular No. 67/70318 dated 25/11/1440H and complementary circular No. 41044254 dated 25/06/1441H. Added or amended texts are underlined.
2. Scope of Application
All Banks and Finance Companies authorized and regulated by SAMA in Saudi Arabia.
3. Definitions
Annual Percentage Rate (APR)
The discount rate at which the present value of payments and installments that are due from the Borrower, representing the Total Amount Payable by the Borrower, equals the present value of all payments of the Amount of Financing available to the Borrower on the date on which the Financing amount or the first payment thereof is available to the Borrower (As per Article 81 of Implementing Regulations of the Finance Companies Law). Annual Equivalent
Rate (AER)
The rate for a savings account or investment product that has more than one compounded interest/profit during the year. It is calculated under the assumption that any interest/profit paid is included in the principal payments balance and the next interest/profit payment will be based on the slightly higher account balance due to adding the interest/profit paid on the principal payments balance. Credit card purchase rate The rate applied to transactions (cash or credit) made with a credit card. The rate only applies to balances that are not paid in full by the end of the billing cycle. Financing amount Amount of on balance sheet loan granted to the customer. Maturity Contractual maturity of on balance sheet loans granted to customers: This is the final payment date of a loan at which point the principal and all interests/profits are due to be paid.
Contractual maturity of savings products: This is the final payment date of savings products at which point the principal and interests/profits owed to the customer are due to be paid.Monthly payment amount Installment amount the customer is obliged to pay to the Bank or Finance Company each month until the debt is fully repaid. Minimum payment amount Lowest amount the customer can pay on the credit card to avoid late payment penalties. Minimum payments are calculated as percentage of the outstanding balance plus any fees that have been added. Months until balance repaid Number of months remaining if minimum repayment on credit card is made by customer each month. Property market value Price negotiated between a willing buyer and a willing seller in an arm's length transaction after fulfilling valuation criteria set by the bank. The value may not be the current listing price or the amount of the most recent offer on the property. Loan to Value Ratio Ratio of a loan provided by the Bank or Finance Company to the value of a property purchased and determined as property market value. Payment type Interest/profit only payments or, both principal and interest/profit payments or else. Early payment charge A fee the customer will be required to pay to a lender if the customer pays off a loan early and before the scheduled maturity term of the credit facility, also sometimes referred to as a Redemption Penalty. Deposit amount Amount deposited with the Bank in savings or investment products. 4. Disclosure requirements
a) Banks and Finance Companies are required to disclose and publish information for Retail financing and saving products (if any) in a detailed and clear manner on the website, marketing channels, and other marketing materials according to the disclosure tables contained in Section (5) of these Rules.
b) Banks and Finance Companies are required to disclose and publish information for Micro and Small Enterprises financing and saving products (if any) in a detailed and clear manner on the website, marketing channels, and other marketing materials and disclose the price range for each product according to the disclosure tables contained in Section (6) of these Rules.
c) If disclosure tables cannot be included in some marketing channels and materials such as paper publications, prices or competitive benefits should not be included or referred to in a misleading way, and customers should be advised to visit the website for more details about the product.
d) A calculator should be developed for each financing or savings product showing the price and payments based on the consumer's input, and if not possible, disclosure should be made by giving at least three examples that include financing or saving amount, prices, maturity, and the category of the consumer.
e) A calculator should be developed for credit cards to calculate the APR and all commissions and expenses that the consumer will bear in advance or monthly, also, the calculator must clarify the appropriate credit card type and limit based on the consumer's input.
f) Financing limits, charges and tariffs should be subject to the relevant laws, regulations, and any other regulatory requirements.
g) Prices, ratios or rates that do not match disclosure tables and calculator results on the website should not be used in marketing campaigns.
h) The process of calculation and factors that affect the pricing should be clarified for the purpose of transparency e.g. if floating interest/profit rate is used, this should be clarified.
i) Disclosing the minimum or maximum limit for products of which the prices that cannot be determined e.g. savings products whose prices are determined based on the average amount kept in the customer's account.
j) If one of the disclosure requirements in the disclosure forms is not applicable to a product, it should be clarified in the disclosure form as "Not Applicable - N/A" given that a reasonable justification is provided.
k) For mortgage loans, which contain multiple features, Banks and Finance Companies should develop a mortgage calculator on their websites considering the inputs prescribed in section 5 (C) of these Rules. For other printed materials, one example per type should be used.
l) Consumers should be informed, in writing, that prices in the disclosure tables or calculator are examples and customers could be offered different prices based on certain factors such as the consumer credit worthiness.
m) Where applicable, disclosure tables and calculator for financing and savings products (if any) should be consolidated in one page under an icon called "Prices of Financing and Savings Products" in the website. Also, Banks and finance companies should enable direct access to the page by adding the icon on the top right of the website home page to make it easier for consumers to access prices. In addition, disclosure tables and calculators should be included on the page dedicated to each product.
n) Prices should be reviewed periodically, at least monthly, and any modification to prices should be reflected in the disclosure tables and calculator within one business day. In addition, the date of the last update should be mentioned at the top of the page.
5. Disclosure Tables for Retail Customers
Banks and Finance Companies should use the examples below as illustration with the minimum type of information the disclosure forms should include. Additional information can be added to the minimum requirements stated in this section.
a) Different types of financing products
(On balance sheet products, such as loans, should be disclosed, and there is no need to disclose off balance sheet products)
Example: Term loan
Financing Amount Maturity in Years APR* Monthly Payment Amount 100,000 5 years 5.5% 1,901 *The above table is just an example and APR may differ depending on the amount, the maturity period, and the credit scoring of each customer.
b) All Credit Cards types and classes
Example: Platinum balance-transfer card
APR* Credit Card Purchase Rate Minimum Repayment Amount %age Months Until Balance Repaid** 19% 17% 5% 60 months * Banks and Finance Companies should clearly disclose all the elements of the APR and commissions in the contracts, and separate between the commissions and expenses that the consumers will bear in advance and the monthly payments on the outstanding amount.
*lf minimum repayment is made every month, it will take almost 60 months to repay the full amount keeping in view compounded interest/added profits each month.
c) Residential Mortgages
Example: First home buy*
Property
Market
ValueLoan to
Value RatioFixed or Variable Interest/Profit Rate** Annual Percentage Rate (APR) Maturity in Years Payment Type Monthly Payment Amount Early payment Charge 500,000 90% Fixed interest/profit rate 4.5% 25 years Principal and interest/profit 19,378 Profit of future 3 installments *Banks and Finance Companies should disclose the repayment period for off-plan and self-construction products in the mortgage calculator.
**lncluding initial interest/profit rate (interest/profit rate fixed for few years at the start of mortgage) and follow on rate (interest/profit rate to be used once initial rate term is over) e.g. Fixed interest/profit rate for few years and thereafter using variable interest/profit rate e.g. 3 month SAIBOR + 20 basis point.
d) Financial Leasing Products for each type of assets
Example: Auto loan
Asset Type Financing Amount Maturity in
YearsAnnual Percentage Rate (APR) Monthly Payment Amount Residual Value Car 200,000 5 years 5% 4,051 20,000 e) Savings for each Class and Type of Product
Example: 2 years fixed deposits
Minimum Deposit Amount Maturity in Years AER Number of Withdrawals Permitted in the 1st Year Number of Withdrawals Permitted in the 2nd Year 20,000 2 years 1.5% 0 2 6. Disclosure Tables for Micro and Small Enterprises
a) Financing Products
(On balance sheet products for micro and small enterprises, such as loans, should be disclosed, and there is no need to disclose off balance sheet products)
Example: Loan types for small enterprises
Product APR* Administrative Fees Minimum (or) Maximum Administrative Fees Short term loan 4% to 6% 2% to 3% SAR 1000 Medium term loan 3% to 5% 1% to 2% SAR 1000 *The above table is just an example and APR may differ depending on the amount the maturity period, and the credit scoring of each customer.
b) Savings Products
Example: 2 years fixed deposits
Minimum Deposit Amount Maturity in Years AER Number of Withdrawals Permitted in the 1st Year Number of Withdrawals Permitted in the 2nd Year 20,000 2 years 1.5% 0 2 7. Implementation Date
These Rules shall enter into force within 15 days from issuance date.
Consumer Complaints
To read the “Consumer Complaints”, click here.
Regulating Banking Employees' Communications with Customers for Payment of Outstanding Debts
In reference to SAMA receiving complaints from bank customers regarding the numerous phone calls they and their family members, relatives, or friends receive at various and inconvenient times from collection employees working for the banks, aiming to pressure them to pay their outstanding debts to these banks.
In the interest of SAMA in organizing the process of debit collection bank customers and the communications related to this, as well as protecting customer privacy, the bank must establish an appropriate mechanism to limit these communications to the debtors or their guarantors whose names and signatures appear on the banking documents of guarantee and not to other family members, relatives, or friends. Furthermore, these communications should be confined and specified within the official working hours of the banks. In case customers do not respond regarding the bank’s indebtedness, they should be followed up through the specialized authorities. We hope to be informed of the measures taken in this regard within a month from its date.
according to Circular No. (5497/MAT/2346) dated 28/01/1432H. In view of SAMA receiving complaints from bank customers that include threats from collection employees working for or contracted by the banks to record remarks on their credit records with the credit information company "SIMAH" to pressure them to settle their outstanding debts, SAMA wishes to remind banks not to involve the name of SAMA, credit information companies, or other supervisory entities in the communications of debt collectors with customers.
According to SAMA Circular No. (341000059261) dated 11/05/1434H. SAMA has observed that some banks are using unprofessional methods to collect distressed debts and are misleading distressed customers by claiming that their names will be removed from "SIMAH's list" upon settling their debts.
Whereas following such methods with distressed bank customers reinforces a false understanding of the role of credit information companies and negatively impacts the efforts made to educate beneficiaries about the reality of credit reports and their contents. Therefore, SAMA emphasizes the necessity for all banks operating in the Kingdom, particularly the employees of the collection department and contracted collection companies, as well as other relevant departments, to refrain from using unprofessional methods to collect distressed debts. This includes misleading distressed customers into believing that their names will be removed from "SIMAH's list" upon debt settlement, which contradicts the actual mechanisms of the credit reporting system in place.
Control and Awareness Measures for Branch and Customer Service Employees in Banks Operating in the Kingdom
No: 42063179 Date(g): 17/4/2021 | Date(h): 6/9/1442 Status: In-Force Translated Document
Based on the powers vested to SAMA under the relevant regulations and instructions, and in line with the SAMA's supervisory and regulatory role in enhancing the protection of the privacy of customers of the financial institutions under its supervision and their employees, as well as in continuously improving and strengthening sound practices in banks.
Enclosed are the regulatory and awareness procedures for branch staff and customer service employees in banks operating in the Kingdom. These procedures aim to mitigate operational risks related to handling banking laws and to ensure that operations are conducted in accordance with approved regulations, instructions, and powers to protect banks and customers from exposure to losses.
Please take note and act accordingly by the end of the third quarter of 2021.
First: Introduction
A. Objective
These procedures aim to establish the minimum regulatory and awareness measures for branch staff and customer service employees in banks operating in the Kingdom. Compliance with these measures is required to mitigate operational risks related to dealing with banking laws and to ensure that operations are conducted in accordance with approved regulations, instructions, and authorities, thereby protecting banks and clients from potential losses.
B. Scope
These procedures apply to banks operating within the Kingdom. This is without prejudice to any other relevant regulations or guidelines, including but not limited to: Cyber Secuity Framework and the Business Continuity Management Framework.
Second: Definitions
The terms and phrases mentioned in these procedures are defined as follows, unless the context indicates otherwise:
Central Bank: The Saudi Central Bank.
Banks: Banks operating within the Kingdom.
Branches: Branches of commercial banks operating within the Kingdom.
Employees: Employees of branches and customer service.
Customers: Customers of the banks.
Third: Supervisory Procedures
Banks must adhere to the required maturity level as Cyber Security Framework and the Business Continuity Management Framework, with particular attention to the following:
Fourth: Awareness Procedures
Banks are required to adhere to the following:
1. Establish a policy for the secure use of banking laws, including procedures for handling usernames and passwords, and review it periodically. 2. Ensure employees are aware of the importance of checking that they are not being observed when entering their username or password. 3. Provide training and qualification for employees on essential information related to information security. 4. Conduct periodic awareness campaigns for employees regarding the instructions issued by SAMA and the banks' own policies, especially concerning the confidentiality of customer account information and the penalties for non-compliance. This should include ongoing educational materials and be conducted at least every three months. 5. Conduct regular awareness campaigns for employees on information security and financial fraud prevention, with ongoing educational materials provided at least every three months 6. Perform tests and surveys of employees at least every six months to assess the effectiveness of the awareness procedures outlined in points (4) and (5). 7. Obtain a declaration from employees, both upon starting work and annually (either in paper or electronic form), acknowledging that they have reviewed and are committed to all policies related to the secure use of banking laws and the handling of usernames and passwords.
Fifth: General Provisions
1. These procedures should be read in conjunction with all related regulations and instructions.
2. These procedures represent the minimum requirements for banks to implement in terms of enhancing the monitoring and awareness aspects for employees. 3. Existing policies, manuals, and procedures should be reviewed and updated periodically to ensure they align with the requirements set forth in these procedures and related instructions. 4. One of the supervisory departments (Internal Audit or Compliance Department) should be assigned to conduct periodic examinations or reviews (within a maximum of two years) to verify compliance with the requirements outlined in these procedures. Standardization of Notification Elements Sent to Financial Institutions Customers
No: 42023876 Date(g): 29/11/2020 | Date(h): 14/4/1442 Status: In-Force Translated Document
Further to the Saudi Central Bank's (SAMA) letter No. 381000060893 dated 07/06/1438H regarding the standardization of notification elements sent to bank customers for Mada card transactions, and in line with SAMA's commitment to enhancing customer awareness through notification messages for transactions on their accounts, memberships, and electronic wallets:
Attached is an update to the notification templates, which includes adding essential elements to the text notifications according to the procedures outlined in Table No. (1) and Table No. (2) at a minimum. Therefore, financial institutions are required to send notification messages for all financial transactions and apply the requirements as specified in the attached tables within 60 days from the date of this notice, and to provide SAMA with an implementation plan within two weeks. Please be aware that legal actions will be taken if the required procedures are not adhered to within the specified time frame.
Table No. (1)
Transaction Type Minimum Information Required internal purchases Amount, Currency
Store Name
Card Type (Mada, Credit), Executed Through Example (Apple Pay, Mada Pay, Atheer)
Card Number (Last Four Digits)
Date
Time
International Purchases Amount, Currency
Store Name
Country
Card Type (Mada, Credit), Executed Through Example (Apple Pay, Mada Pay, Atheer)
Card Number (Last Four Digits)
Date
Time
International Cash Withdrawal Amount, Currency
Country
Fees
Card Type (Mada, Credit)
Card Number (Last Four Digits)
Date
Time
internal cash withdrawal
Amount, Currency
Withdrawal Location (ATM Location or Branch/Code)Card Type (Mada, Credit)
Card Number (Last Four Digits)
Date
Time
Checks Amount, Currency
Payee Name Check Holder's
Account Number
Date
Time
Cash Deposit Amount, Currency
Deposit Method (e.g., Branch or ATM)
Account Number
Date
Time
Domestic Transfers Transferred Amount, Currency
Fees
Sender's Name (for Incoming Transfers)
Receiver's Name (for Outgoing Transfers)
Sender's Account Number (for Incoming Transfers)
Receiver's Account Number (for Outgoing Transfers)
Date
Time
International Transfers Transferred Amount, Currency
Fees
Sender's Name
Receiver's Name
Sender's Account Number
Receiver's Account Number
Transfer Intermediary Company Name (e.g., Western Union)
Destination Country
Date
Time
Internet Purchases Amount, Currency
Website or Store
Card Type (Mada, Credit), Executed Through Example (Apple Pay, Mada Pay, Atheer)
Card Number (Last Four Digits)
Account Number
Date
Time
Government Bill Payments Amount, Currency
EntityService
Invoice Number
Date
Time
Other Bill Payments Amount, Currency
Biller
Service
Invoice Number
Date
Time
Financing / Refinancing Transactions Financing Type
Total Amount of Financing
Monthly Installment
Account Number
Date
Time
Monthly Financing Deduction Financing Type
Due Installment
Total Remaining
Amount Account Number
Date
Time
Fees Amount, Currency
Reason
Account Number
Date
Time
Refund / Reversal Amount, Currency
Country in External Transactions
Store or Website or Entity
Account Number
Date
Time
Mobile App Transactions App Name (e.g., Apple Pay)
Amount, Currency
Store Name or Website
Card Type (Mada, Credit)Card Number (Last Four Digits)
Account Number
Date
Time
E-Wallet Top-Up Wallet Name (e.g., STCPay)
Amount, Currency
Top-Up Channel (Mada, Credit, SADAD, etc.)
Card Number (Last Four Digits)
Amount, CurrencyDate
Time
E-Wallet Transactions Amount, Currency
Card Type (Mada, Credit) / Transaction
Card Number (Last Four Digits)
Store or Website
Date
Time
Table No. (2)
Arabic Term
English Term
سداد فاتورة
Bill Payment
سداد فاتورة لمرة واحدة
Bill Payment one time
إصدار شيك مصدّق
Certified Cheque lssued
بطاقة ائتمانية الغاء حجز مبلغ
Credit Card Cash Release
بطاقة ائتمانية حجز مبلغ
Credit Card Cash Reserve
بطاقة ائتمانية استرجاع نقدي
Credit Card Cashback
بطاقة ائتمانية تأكيد سداد
Credit Card Credited
بطاقة ائتمانية تسديد
Credit Card Payment
بطاقة ائتمانية استرداد مبلغ
Credit Card Refund
إيداع رسوم
Credit Transaction Fees
حوالة واردة من بطاقة
Credit transfer from card
حوالة واردة بين حساباتك
Credit transfer Between Your Accounts
حوالة واردة حساب مواطن
Credit transfer Citizen Account
سحب نقدي طارئ
Credit transfer Emergency Cash Withdrawal
حوالة واردة من حسابك الجاري
Credit transfer From your Current Account
حوالة واردة من حسابك الاستثماري
Credit transfer From Your Investment Account
حوالة واردة حافز
Credit transfer Hafiz
حوالة واردة داخلية
Credit transfer Internal
حوالة واردة دولية
Credit transfer International
حوالة واردة تمويل
Credit transfer Loan
حوالة واردة محلية
Credit transfer Local
حوالة واردة راتب
Credit transfer Salary
حوالة واردة كفيل
Credit transfer Sponsor
حوالة واردة مكافأة طلاب
Credit transfer Student Reward
خصم رسوم
Debit Transaction Fees
حوالة صادرة الى بطاقة
Debit Transfer to card
حوالة صادرة بين حساباتك
Debit Transfer Between Your Account
حوالة صادرة داخلية
Debit Transfer Internal
حوالة صادرة دولية
Debit Transfer International
خصم قسط تمويل
Debit Transfer Loan Instalment
حوالة صادرة محلية
Debit Transfer Local
حوالة صادرة راتب
Debit Transfer Salary
حوالة صادرة مكفول
Debit Transfer Sponsored
حوالة صادرة الى حسابك الجاري
Debit Transfer To Your Current Account
حوالة صادرة الى حسابك الاستثماري
Debit Transfer To Your Investment account
خصم شيك مصدق
Debit Certified Cheque
خصم شيك ورقي
Debit Paper Cheque
إيداع صراف آلي
Deposit ATM
إيداع فرع
Deposit Branch
إيداع شيك مصدق
Deposit Certified Cheque
إيداع شيك ورقي
Deposit Paper Cheque
شراء عملة أجنبية
Foreign Currency Purchase
سحب صراف آلي دولي
International ATM Withdrawal
مدفوعات وزارة الداخلية
MOl Payments
شراء إنترنت
Online Purchase
امر مستديم سداد فواتير
Permanent transfer Bill Payment
امر مستديم حوالة صادرة داخلية
Permanent transfer Debit transfer Bank internal
امر مستديم حوالة صادرة بين حساباتك
Permanent transfer Debit transfer Between Your Accounts
امر مستديم حوالة صادرة دولية
Permanent transfer Debit transfer International
امر مستديم حوالة صادرة محلية
Permanent transfer Debit transfer Local
امر مستديم حوالة صادرة راتب
Permanent transfer Debit transfer Salary
امر مستديم مدفوعات وزارة الداخلية
Permanent transfer MOl Payments
شراء عبر نقاط البيع دولية
PoS International Purchase
شراء عبر نقاط البيع
Pos Purchase
شراء ونقد عبر نقاط البيع
Pos Purchase & Cashback
تسوية نقطة البيع
PoS settlement
حوالة واردة
Received transfer
استرجاع مدفوعات وزارة الداخلية
Refunding MOl Payments
حوالة عكسية
Reverse Transaction
سحب صراف آلي
ATM Withdrawal
سحب فرع
Branch Withdrawal
Rules Governing Calculation of Annual Percentage Rate (APR)
To read the “Rules Governing Calculation of Annual Percentage Rate (APR)”, click here.
Banking Tariff
No: 381000095093 Date(g): 4/6/2017 | Date(h): 10/9/1438 Status: In-Force The attached banking tariff replaced the tariff for banking services issued pursuant to Circular by the Central Bank No. (341000134319), dated 25/11/1434 H, corresponding to 29/09/2013 G.according to The Banking Control Law issued by Royal Decree No. M/5 dated 22/2/1386 H. and Ministerial Decision No. 3/2149 dated 14/10/1406 H regarding the implementation Rules for Banking Control Law. The Central Bank is authorized to set the maximum limit for banking fees on personal accounts and banking services that banks are allowed to charge their individual customers.
Attached is an updated version of the banking tariff and the accompanying instructions, which must be adhered to and implemented within three months from its date.
General Instructions
- The disclosure and transparency principle shall be applied, where all means will be used to inform the customer.
- Disclosing all tariffs at banks’ branches and on their websites in a clear and legible manner to be accessible to customers.
- The maximum banking tariff for banking services as illustrated in the table attached to this circular shall not be exceeded.
- Providing SAMA with all types of tariff or fees according to this circular at the beginning of each Hijri year (Muharram) to be disclosed on website.
- Utilizing banking tariff instructions to encourage the utilization of electronic channels and financial inclusion.
- Obtaining a prior approval from SAMA on tariff or fees for any services or products that are not included in this circular.
- Fees shall be within reasonable and competitive limits as compared with similar services that are conformed to the best applicable applications and practices.
- Not charging any fees associated with the services or products provided to customers except after customers' acceptance for the service and related fee.
- A bank, may opt not to charge any of the tariff set forth herein as it deems appropriate and consistence with its policy of providing services with fair competition.
- Apply the charging policies issued by SAMA for all payment systems (MADA\ SARIE \SADAD…etc.) and its services.
- SAMA will periodically review and update the banking tariff in accordance with approved and licensed products and its fees
Banking Tariff
The banking tariff sets the allowable maximum fees that a bank may, but not necessarily, charge individual customers and beneficiaries for services provided by the bank following their acceptance.
Banking Service Description.
Maximum Banking Tariff
1- Customer Accounts Free
a. opening an account
free b. Balance is less than required limit
None 2- Account statement
At branch:
a. statement for less than one year 25 SAR b. statement for1 - 5 years
30 SAR c. statement for more than five year
50 SAR Electronically (internet, telephone, ATM…):
a. Monthly statement by regular mail or email electronically
Free b. ATM mini statement electronically
free 3- Cash Withdrawal using a withdrawal Form at the Branch
Free 4- MADA ATM and POS Cards:
Free a. issuance of ATM card for a Free account
Free b. ATM cash withdrawal / deposit
Free c. Use of MADA cards at POS terminal by customers
Free d. Renewal of ATM card
Free e. Re-issuance of ATM card retained by an ATM
Free f. NAQAD service (purchase with cash back)
Free g. Re-issuance of ATM card (lost / damaged / 3 invalid passwords)
30 SAR h. issuance of an additional ATM card
30 SAR 5- Electronic Payment of Bills Government Services (SADAD):
a. Government services payment.
Free b. Payment of bills and services..
Free c. SADAD Account for online payment.
Free 6- Banking Transfer & services
At Branch:
a. Transfer to another account within the same bank
Free b. Setting up a standing payment order (one time)
15 SAR c. Transfer to another bank inside the Kingdom through SARIE (same day)
25 SAR d. Transfer to another bank inside the Kingdom through SARIE (forward)
15 SAR e. Transfer to a bank outside the Kingdom.
75 SAR f. Change/cancel transfer outside the kingdom
25 SAR Electronically (internet, telephone and ATM):
g. Transfer to another account within the same bank
Free h. identification of a beneficiary for fund transfer
Free i. Setting up a standing payment order (one time)
10 SAR j. Transfer to another bank inside the Kingdom through SARIE (same day)
7 SAR k. Transfer to another bank inside the Kingdom through SARIE (forward)
5 SAR l. Transfer to a bank outside Kingdom
50 SAR m. Change/cancel transfer outside kingdom
15 SAR 7- Checks
a. Issuance of a checkbook (25 checks)
Free b. Issuance of an additional checkbook (25 checks)
10 SAR c. Issuance of a bank check
10 SAR d. Revocation of a bank check
10 SAR e. Issuance of a bank check (foreign currency)
15 SAR f. Revocation of a bank check (foreign currency)
15 SAR g. Requesting a copy of a check dated to one year
10 SAR h. Requesting a copy of a check dated more than one year
20 SAR 8- GCCNet Transaction Fees
a. Cash withdrawal within Gulf countries
10 SAR b. Balance inquiry within Gulf countries
3 SAR c. Customer use of GCC cards at POS terminals within Gulf countries.
FREE 9. International Network Transaction Fees
a. Cash withdrawal for debit cards
25 SAR Cash withdrawal from credit cards
b. Withdrawal of SAR 5,000 or less
75 SAR c. Withdrawal of more than SAR 5,000
3% MAX 300 SAR d. Credit card dispute fee (if wrong dispute)
50 SAR e. Balance inquiry on ATM
3,5 SAR