Superseded Circulars
Ministerial Resolution No. (3/920) dated 16/2/1402H Regarding the Rules Regulating Money Changing Business
The Ministerial Resolution No. (3/920) dated 16/2/1402H regarding the rules regulating money changing business has been repealed and replaced by the Decision of the Minister of Finance No. 4686 dated 21/11/1441H.Rules on Outsourcing-2008
This Circular has been superseded and replaced by SAMA Circular No. 41027017 Dated 15/12/2019.Anti-Money Laundering Law of 2003
The Anti-Money Laundering Law of 2003 has been subsequently superseded by the Anti-Money Laundering Law, (M31), dated 11/05/1433H, and the Anti-Money Laundering Law, (M/20), dated 05/02/1439H.Assessment of Protection and Information Security Systems for all Banks
This Circular has been superseded by the Cyber Security Framework, 381000091275, 24/5/2017.Prohibition on Dealing with Western Union
This Circular has been superseded by SAMA circular No. (361000072217), dated 17/05/1436H, Corresponding To 07/03/2015G.Enhance Monitoring Controls Over ATMs
This Circular has been superseded by the Cyber Security Framework, 381000091275, 24/5/2017.Requirements to Reduce DoS/DDoS Attacks
This Circular has been superseded by the Cyber Security Framework, 381000091275, 24/5/2017.Cards Cloning
This Circular has been superseded by the Cyber Security Framework, 381000091275, 24/5/2017.Independency of Information Security
This Circular has been superseded by the Cyber Security Framework, 381000091275, 24/5/2017.Confidentiality of Banking Information
This Circular has been superseded by the Cyber Security Framework, 381000091275, 24/5/2017.Suspending the Transfer Service for Al-Zamil Company and Halawani Exchange Company
This Circular has been updated by SAMA circular No. (2766/67), dated 17/01/1440H.SAMA Regulation about Mobile Banking
This Circular has been superseded by the Cyber Security Framework, 381000091275, 24/5/2017.Using Forged ATM Cards to Withdrawals from Client Accounts
This Circular has been superseded by the Cyber Security Framework, 381000091275, 24/5/2017.Token Service
This Circular has been superseded by the Cyber Security Framework, 381000091275, 24/5/2017.E-Banking Rules
This Circular has been superseded by the Cyber Security Framework, 381000091275, 24/5/2017.Multi-Factor Authentication
This Circular has been superseded by the Cyber Security Framework, 381000091275, 24/5/2017.Anti-Money Laundering Law of 2012
The Anti-Money Laundering Law of 2012 has been superseded by the Anti-Money Laundering Law, (M/20), dated 05/02/1439H.Law of Terrorist Crimes and its Financing -2013
The law of terrorist crimes and its financing of 2013 has been superseded by the Law on Combating the Financing of Terrorism, No (M/21), dated 12/02/1439H, Corresponding to 01/11/2017G.Implementing Regulation to the Anti-Money Laundering Law-2012
The Implementing Regulation to the Anti-Money Laundering Law of 2012 has been superseded by the Implementing Regulation to the Anti-Money Laundering Law, No (14525), dated 19/02/1439H, Corresponding to 08/11/2017G .Regulations of Complaints Handling and the Establishment of Complaints Units in the Banks
These Regulations have been superseded by the Rules for Establishing a Customer Care Department in Banks, No 44069265, dated 29/08/1444 , Corresponding To 21/03/2023 G.Requirements for Appointment to Leadership Positions and Suitability Model
These requirements have been superseded by the Requirements for Appointments to Senior Positions No. 42064776, Dated 13/09/1442H, Corresponding To 25/04/2021G.Rules for Combating Money Laundering and Terrorist Financing in the Insurance and Reinsurance Companies and Liberal Professions
These Rules have been replaced by the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Guide, accordance to SAMA circular No. (18318/486), dated 20/03/1441H, corresponding to 17/11/2019G.Rules Governing Anti-Money Laundering & Combating Terrorist Financing for all Banks and Money Exchangers and Foreign Banks' Branches Operating in the Kingdom of Saudi Arabia
These Rules have been replaced by the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Guide, accordance to SAMA circular No. (18318/486), dated 20/03/1441H, corresponding to 17/11/2019G.AML/CTF Rules and Regulations for Financing Companies
These Rules have been replaced by the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Guide, accordance to SAMA circular No. (18318/486), dated 20/03/1441H, corresponding to 17/11/2019G.Rules Governing the Opening of Bank Accounts and General Operational Guidelines in Saudi Arabia, Fourth Amendment
These rules have been superseded by the Rules for Bank Accounts issued by circular No. (65681/67), dated 01/11/1440H, corresponding to 03/07/2019G.Compliance Manual for Banks Working in Saudi Arabia-2008
This Circular has been superseded by SAMA Circular No. (42005223), dated 28/01/1442H.Digital Confirmation of Banking Products for Customers of Public Banks in the Kingdom
This Circular has been superseded by SAMA circular No. (42009004), dated 18/02/1442H, Corresponding To 05/10/2020G.Manual of Combating Embezzlement & Financial Fraud & Control Guidelines-2008
These Guidelines have been subsequently superseded by the Guidelines for Combating Financial Fraud in Banks Operating in Saudi Arabia No. (41071315), dated 27/12/1441H, Corresponding To 16/08/2020G , and the Counter-Fraud Framework No. (44021528), dated 15/03/1444H, Corresponding To 11/10/2022G .E-Wallet Security Controls v1.0
This Circular has been superseded by SAMA Circular Minimum Verification Controls, (TA'M/245/202204), dated 21/04/2022.Disclosure of Interest Rate of Financing and Saving Products-2019
The Disclosure of Interest Rate of Financing and Saving Products has been superseded by The Rules for Disclosing Prices of Finance and Savings Products, (41068291), dated 02/12/1441 H Corresponding To : 22/07/2020 G.Guidelines for Combating Financial Fraud in Banks Operating in Saudi Arabia
These guidelines have been replaced by the Counter-Fraud Framework No. (44021528), dated 15/03/1444H, Corresponding To 11/10/2022AD .Banking Consumer Protection Principles
These principles have been superseded by the Financial Consumer Protection Principles and Rules No. (44006639), dated 26/01/144H, corresponding to 23/08/2022G.Finance Consumer Protection Principles
These principles have been superseded by the Financial Consumer Protection Principles and Rules No. (44006639), dated 26/01/144H, corresponding to 23/08/2022G.Margin Requirements for Non-centrally Cleared Derivatives-2013
This circular has been superseded by the Margin Requirements for Non-Centrally Cleared Derivatives, No (42008998), dated 18/02/1442 H, Corresponding To 05/10/2020 G.Consumers Protection Principles for Insurance Companies
These principles have been superseded by the Financial Consumer Protection Principles and Rules No. (44006639), dated 26/01/144H, corresponding to 23/08/2022G.Amendment of Paragraph (2) of Item (First) of the Regulations of Complaints Handling and the Establishment of Complaints Units in the Banks
This section is currently available only in Arabic, please click here to read the Arabic version.Saudi Arabian Monetary Authority Law
This Law has been superseded by the Saudi Central Bank Law, M/36, 11/04/1442H Corresponding To 26/11/2020G.Disclosure of Interest rate of Financing and Saving Products-2020
The Disclosure of Interest Rate of Financing and Saving Products has been superseded by The Rules for Disclosing Prices of Finance and Savings Products, (41068291), dated 02/12/1441 H Corresponding To : 22/07/2020 G.Margin Requirement for Non-Centrally Cleared Derivatives-2016
This circular has been superseded by the Margin Requirements for Non-Centrally Cleared Derivatives, No (42008998), dated 18/02/1442 H, Corresponding To 05/10/2020 G.Regulations for Consumer Credit
The Regulations for Consumer Credit have been superseded by the Regulations for Consumer Financing, (351000116619), dated 10/09/1435H, Corresponding To 07/07/2014G.Rules on Large Exposures of Banks-2018
These Rules have been superseded by the Large Exposure (LEX) Rules for Banks, (1651/67), dated 09/01/1441 H, Corresponding To 08/09/2019 G.Margin Requirements for Non-Centrally Cleared Derivatives-2019
This circular has been superseded by the Margin Requirements for Non-Centrally Cleared Derivatives, No (42008998), dated 18/02/1442 H, Corresponding To 05/10/2020 G.Outsourcing Guidelines for Branches of Foreign Banks Operating in the Kingdom
another example
This Circular has been superseded by the Rules on Outsourcing, (41027017), dated 18/04/1441H Corresponding To : 15/12/2019G.Margin Requirements for Non-Centrally Cleared Derivatives-2014
This circular has been superseded by the Margin Requirements for Non-Centrally Cleared Derivatives, No (42008998), dated 18/02/1442 H, Corresponding To 05/10/2020 G.Principles of Governance for Banks Operating in Saudi Arabia -2014
Margin Requirements for Non-Centrally Cleared Derivatives-2015
This circular has been superseded by the Margin Requirements for Non-Centrally Cleared Derivatives, No (42008998), dated 18/02/1442 H, Corresponding To 05/10/2020 G.Bank Primary Dealers(Bank-PDs) in Government Securities
This Circular has been superseded by SAMA's circular number, (44995/67),dated 17/07/1440H, Corresponding To 23/03/2019G.Loans to Deposits Ratio Guidelines-2006
This Circular has been superseded by the Loans to Deposits Ratio Guidelines, (44071146), dated 06/09/1444 H, Corresponding To 27/03/2023 G.Amending Paragraphs (9) and (10) of Article 13 in the Principles for Protecting Bank Customers
The Consumers protection principles for banks have been superseded by the Financial Consumer Protection Principles and Rules, dated 05/09/2022.Guidelines for Calculating Loan to Deposit Ratio (LDR)
This Circular has been superseded by the Loans to Deposits Ratio Guidelines, (44071146), dated 06/09/1444 H, Corresponding To 27/03/2023 G.Rules on Compensation Practices
These rules have been superseded by the Banks Remuneration Rules, No (44049096), dated 12/06/1444 H, Corresponding To 04/01/2023 G.Rules Governing Money Changing Business-1432
This Circular has been superseded by the Rules Regulating Money Changing Business, (4686), dated 21/11/1441H Corresponding To 11/07/2020G.Allowing Exchange Centers to Receive Money Transfers through Electronic Payment Methods for Currency Exchange Purposes Only
These instructions were issued by circular No (41056269), dated 12/09/1441H, corresponding to 05/05/2020G, and superseded by Circular No. (43098769), dated 19/11/1443H, corresponding to 28/06/2022G.Expansion of Credit Facilities to Facilitate Subscription in Offered Shares
This Circular has been superseded by the Initial Public Offering (IPO) Rules for Receiving and Lending Banks, ((43060832), dated 08/07/1443 H, Corresponding To 09/02/2022 G.SAMA Guidelines on the Internal Liquidity Adequacy Assessment Plan (ILAAP) - 2017
These Guidelines have been superseded by the Guidelines on the Internal Liquidity Adequacy Assessment Plan (ILAAP), (42012157), dated 01/03/1442 H, Corresponding To 17/10/2020 G.Related Parties Rules for Banks
These rules have been superseded by the Related Parties Rules for Banks, (43095743), dated 17/11/1443H, Corresponding To 16/06/2022G.Annual Branch Expansion Plan (ABEP)
This Circular has been superseded by the Regulation on Branch Network, (43089486), dated 23/10/1443 H, Corresponding To 24/05/2022 G.Basel III - Internal Rating Based (IRB) Approaches for Credit Risk- 2014
This Circular has been superseded by SAMA circular No. (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G, Refer to Minimum Capital Requirements for Credit Risk framework.Information Requirements for Bank SMS Alerts for MADA's Cards Transactions- 2017
This Circular has been updated by SAMA circular No. (42023876), dated 14/04/1442H, Corresponding to 29/11/2020G.Decrease RWA for Mortgages from 75% to 50%
This Circular has been superseded by the Basel III Reforms, (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G, Refer to Minimum Capital Requirements for Credit Risk framework.Reducing RWA for MSMEs
This Circular has been superseded by SAMA circular No. (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G, Refer to Minimum Capital Requirements for Credit Risk framework.SAMA's Guidance Document and Disclosure Templates Concerning the Implementation of Basel III Leverage Ratio Disclosure Requirements based on BCBS Document of January 2014
This Circular has been superseded by the Basel III Reforms, (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G. For updates. Refer to Leverage Ratio Framework and section 27, leverage ratio under pillar 3 disclosure requirements Framework.SAIBOR/SAIBID Rates - Implementation of Phase 1 New Requirements
The SAIBOR/SAIBID Rates - Implementation of Phase 1 New Requirements have been replaced by the Saudi Arabian Benchmark (SAIBOR/SAIBID), accordance to SAMA circular No. (43041880), dated 09/05/1443H, Corresponding To 13/12/2021 G.SAIBOR/SAIBID Rates - Implementation of Phase 1 New Requirements
The SAIBOR/SAIBID Rates - Implementation of Phase 1 New Requirements have been replaced by the Saudi Arabian Benchmark (SAIBOR/SAIBID), accordance to SAMA circular No. (43041880), dated 09/05/1443H, Corresponding To 13/12/2021 G.Interbank Offered Rate (SAIBOR)
The Interbank Offered Rate (SAIBOR) has been replaced by the Saudi Arabian Benchmark (SAIBOR/SAIBID), accordance to SAMA circular No. (43041880), dated 09/05/1443H, Corresponding To 13/12/2021 G.Quarterly Prudential Return On Loans and Deposits Commissions
This Circular has been superseded by the Interest Rates on Assets and Liabilities Reporting Guidelines, (42009284), dated 19/02/1442 H, Corresponding To 06/10/2020 G.Implementing Regulation to the Anti-Money Laundering Law -2003
The Implementing Regulation to the Anti-Money Laundering Law of 2003 has been subsequently superseded by the Implementing Regulation to the Anti-Money Laundering, dated 14/08/1433H,Corresponding to 03/07/2012G, and the Implementing Regulation to the Anti-Money Laundering Law, No (14525), dated 19/02/1439H, Corresponding to 08/11/2017G.Rules for Dealing with E-Commerce Payment Service and Support Providers
This Circular has been superseded by SAMA circular No. (46004436), dated 18/01/1446H, corresponding To 24/7/2024G.Based on the powers vested in SAMA under the Saudi Central Bank Law issued by Royal Decree No. M/36 dated 11/4/1442 H, the Banking Control Law issued by Royal Decree No. M/5 dated 22/22/1386 H, and Cabinet Decision No. (226) dated 2/5/1440 H, emphasizing the competence of SAMA to control and supervise the payments and financial settlement sector and its services in the Kingdom, and based on Article 5 of Payment Service Providers Regulations issued under Circular No. (41071360) dated 27/12/1441 H which defines the activities falling within the scope of payment services, and referring to Circular No. (391000075005) dated 02/07/1439 H regarding the availability of online purchase service via MADA bank cards to target new sectors within the fields of e-commerce and in line with what serves the Kingdom's aspirations within Vision 2030 regarding digital transformation, and given the diversity of business models of companies that provide e-commerce payment services, including linkage services and technical support for payment operations, SAMA would like to clarify the following:
First: Activities and services that require the opening of a pooled account for the purpose of depositing and keeping the funds of the customers of payment service providers are considered as one of the services defined within the scope of payment services as stipulated in Article (5-1) of Payment Services Providers Regulations, and companies practicing these services must obtain a license from SAMA and meet the requirements stipulated in the rules.
Second: Linking and technical support services for e-commerce payments operations Payment Technical Service Provider (PTSP) is considered a support service for payments services, and does not require a license from SAMA at this time, and companies practicing these services must obtain all necessary technical permits from Saudi Payments Company, and their services provided are limited to linking and technical support only, and do not include the following aspects:
- Directly contracting with merchants, registering them, carrying out matching procedures and verifying the validity of the merchant's data and information in order to fulfill KYC requirements and requirements related to AML/CFT and Counter-Fraud.
- Finalizing the financial settlement procedures and depositing the funds in the merchant's bank account.
Accordingly, SAMA would like to emphasize the following:1. Banks are required to deal only with companies that are licensed to provide payment services, and to notify SAMA immediately if they discover that an unlicensed company is providing any payment services.
2. Banks, and payment service providers may contract with companies practicing linkage and technical support services for e-commerce payments, after verifying that they have obtained all necessary technical licenses from the Saudi Payments Company and taking into account the Rules on Outsourcing and related instructions and controls, including the operational and technical requirements of the MADA system and the MADA Fee Guide. For information and action accordingly as of /01/01/2022G, and to provide the Payments Systems and Companies Supervision Department with the procedures that have been adopted in this regard via email (PSCC@SAMA.GOV.SA).
Basel Committee on Banking Supervision (BCBS) Document Regarding Liquidity Coverage Ratio Disclosure Standards
This Circular has been superseded by the SAMA’s Revised Amended Liquidity Coverage Ratio Regulations and Guidance Documents, (361000009335), dated 17/01/1436 H, Corresponding To 09/11/2014 G.Actuarial Work Regulation for Insurance and/or Reinsurance Companies
The Actuarial Work Regulation for Insurance and/or Reinsurance Companies (No.72/437, dated 25/03/1437) has been superseded by the Actuarial Work Rules for Insurance, (441/186), dated 06/07/1441 H, Corresponding To 01/03/2020 G.Medical Expenses Insurance-Pricing and Underwriting Instructions - 2018
This Circular has been superseded by circular No. (TA'M/247/202204), dated 25/09/1443H, Corresponding To 26/04/2022G.Basel II Pillar 3 Disclosure Requirements and Guidance Notes
This Circular has been superseded by SAMA circular No , (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G. Refer to Pillar 3 Disclosure Requirements Framework.Enhancements to SAMA's Bank Disclosure Requirements Under the Basel II Framework Pillar 3 Component
This Circular has been superseded by SAMA circular No , (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G. Refer to Pillar 3 Disclosure Requirements Framework.BCBS Document: Range of Methodologies for Risk and Performance Alignment of Remuneration; and Pillar 3 Disclosure Requirements for Remuneration
This Circular has been superseded by SAMA circular No , (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G. Refer to Pillar 3 Disclosure Requirements Framework.Enhancement # 1 to SAMAs Bank Disclosure Requirements Under the Basel II Framework Pillar 3 Component
This Circular has been superseded by SAMA circular No , (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G. Refer to Pillar 3 Disclosure Requirements Framework.The Obligation to Use the Model of Mortgage Finance Contract in Murabaha and Ejarah for Individuals
These instructions were issued by circular No (391000082220), dated 23/07/1439H, and updated by Circular No. (41038504), dated 01/06/1441H, corresponding to 26/01/2020G.Saudi Central bank's Final Guidance Documents Concerning Implementation of Basel 3 Pillar 3 Component
This Circular has been superseded by Saudi Central Bank circular No , (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G. Refer to Pillar 3 Disclosure Requirements Framework.Instructions When Offering Real Estate Finance Products for Individuals-2018
These instructions were issued by circular No (46544/99), dated 2/09/1439H, corresponding to 16/05/2018G, and replaced by the instructions issued by Circular No. (41059668), dated 16/10/1441H, corresponding to 07/06/2020G.SAMA's Draft Implementation Framework for Banks Comments Concerning Basel Committee on Banking Supervision (BCBS) Standards of January 2015 Regarding Revised Pillar 3 Disclosure Requirements
This Circular has been superseded by Saudi Central Bank circular No , (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G. Refer to Pillar 3 Disclosure Requirements Framework.Pillar 3 Disclosure Requirements - Consolidated and Enhanced Framework - Consultative Document
This Circular has been superseded by SAMA circular No , (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G. Refer to Pillar 3 Disclosure Requirements Framework.Frequently Asked Questions on the Revised Pillar 3 Disclosure Requirements
This Circular has been superseded by SAMA circular No , (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G. Refer to Pillar 3 Disclosure Requirements Framework.Pillar 3 Disclosure Requirements - Updated Framework (Consultative Document)
This Circular has been superseded by SAMA circular No , (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G. Refer to Pillar 3 Disclosure Requirements Framework.Pillar 3 Disclosure Requirements: Regulatory Treatment of Accounting Provisions
This Circular has been superseded by SAMA circular No , (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G. Refer to Pillar 3 Disclosure Requirements Framework.Basel Committee on Banking Supervision (BCBS) Standards of January 2015 Concerning Revised pillar 3 Disclosure Requirements
This Circular has been superseded by SAMA circular No , (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G. Refer to Pillar 3 Disclosure Requirements Framework.Accounting Standards for Saudi Commercial Banks
The Accounting standards for Saudi commercial banks are no longer applicable as of January 1 st 2017 ,by the circular no (381000074519), dated 14/07/1438 H.Payment Services Providers Regulations-1441
These regulations have been superseded by the Implementing Regulations of Payments and Payment Services Law, dated 13/06/2023G.Guidelines for Applying for a License to Practice Finance Activities
Status: Modified These Guidelines have been updated by the " Guidelines for Applying for License to Practice Finance Activities and Finance Support Activities".Provisions Guidelines
These Guidelines have been superseded by the Rules Governing Credit Risk Exposure Classification and Provisioning, (42022533), dated 08/04/1442 H, Corresponding To 23/11/2020 G.I. Introduction
The Real Estate Finance Law, Financial Lease Law, and the Law on Supervision of Finance Companies, and their Implementing Regulations entrusted the Saudi Arabian Monetary Agency (SAMA) with the responsibilities to license and supervise financing companies in the Kingdom of Saudi Arabia.
The Law on Supervision of Finance Companies and its Implementing Regulations set forth requirements and procedures for licensing financing activities as identified in Article (10) in the Law on Supervision of Finance Companies. SAMA has set up the forms for license applications and published them on its website (www.sama.gov.sa).
Finance laws and their implementing regulations as well as license applications can be found on SAMA's website.
II. Types of Application
First: New Financing Company application: Relevant for companies which are going to be established for practicing finance activities.
Second: Existing Financing Company application: Relevant for companies and establishments with ongoing operations in the finance sector before the Law on Supervision of Finance Companies cane into force. Such companies and establishments are subject to the provisions of Article (36) of the Law on Supervision of Finance Companies and Article (97) of the Implementing Regulations of the Law on Supervision of Finance Companies.
Third: License Application for a Bank to practice Real Estate Finance and Financial Lease: Relevant for banks applying for license to practice real estate finance and/or financial lease activity(ies).
III. Documentation Requirements
Hardcopy of the Application and Documents Listed on the Licensing Application's Checklist are to be Submitted Along with a CD or USB Containing an Identical Softcopy of the Completed Licensing Application.
1. Documents that are required to be attached as part of the New Financing Company application:
a. A hardcopy and an identical softcopy of completed license application form as set by SAMA, in accordance with the sections identified in the application.
b. Copies of the draft memorandum of incorporation and articles of association as per the form set by SAMA.
c. An organizational structure, including all necessary departments and functions and key responsibilities of each.
d. Fit and proper form as set by SAMA for each founding shareholder after it is completed, signed by the founding shareholder, and attested by the person authorized to submit the license application.
e. Fit and proper form as set by SAMA for each board member after it is completed, signed by each board member, and attested by the person authorized to submit the license application.
f. Feasibility study, in accordance with the details identified in the license application form.
g. Business plan for the financing company, in accordance with details identified in the license application form.
h. Irrevocable bank guarantee should at a minimum be equal to the minimum capital of financing activity or activities to be licensed, according to the form set by SAMA, issued by any local bank for SAMA, and is automatically renewed until the capital is paid in full.
i. Draft agreements and contracts with third parties especially those with related parties or external service providers.
2. Documents required to be attached as part of Existing Financing Company application:
a. A hardcopy and an identical softcopy of completed license application form as set by SAMA, in accordance with the sections identified in the application.
b. Copies of the memorandum of incorporation and articles of association along with copies of draft modified memorandum of incorporation and articles of association as per the forms set by SAMA
c. An organizational structure, including all necessary departments and functions and key responsibilities of each.
j. Fit and proper form as set by SAMA for each shareholder after it is completed, signed by the shareholder, and attested by the finance company.
k. Fit and proper form as set by SAMA for each board member after it is completed, signed by the board member, and attested by the finance company.
l. Fit and proper form as set by SAMA for each member of senior management after it is completed, signed by the member, and attested by the finance company.
d. Feasibility study, in accordance with the details identified in the license application form.
e. Business plan for the financing company, in accordance with details identified in the license application form.
f. Bank guarantee shall be issued for an amount equaling the difference between the minimum capital for the business and finance activities requiring a license and the paid-up capital for the finance Company; the guarantee shall be as per the form set by SAMA for the finance Company whose paid-up capital is less than the minimum capital for business or the finance activities requiring a license.
g. Copies of agreements and contracts with 3rd parties especially agreements with related parties or external service providers; in addition to copies of the draft agreements and the proposed contracts.
h. Valid DZIT certificate.
i. A copy of the Company's commercial registration.
j. Certificate from the Labor Office includes details of current employees and Saudization.
k. Foreign investor license from SAGIA (applicable to foreign shareholders only).
l. Certificate issued by GOSI to prove the Company's participation in GOSI.
m. Audited financial statements for previous 3 years.
3. Documents that are required to be attached as part of the License Application for a Bank to practice Real Estate Finance and Financial Lease:
a. A hardcopy and an identical softcopy of completed license application form as set by SAMA for a Bank to practice Real Estate Finance and Financial Lease, in accordance with the sections identified in the application.
b. Description of organizational structure of the functional units related to real estate finance and financial lease activities, including associated functions, organizational relations and key responsibilities of each.
c. Feasibility study, in accordance with the details identified in the license application form.
d. Business plan according to the details identified in the license application form.
e. Agreements and contracts with third parties in relation to activities to be licensed, especially agreements and contracts with related parties and external service providers, in addition to drafts of proposed agreements and contracts.
IV. Application Process
1- Applicants must complete the appropriate form as described above in II and III, and submit it to SAMA with all supporting documentation as identified on the Licensing Application's Checklist.
2- SAMA will issue a written notice to the applicant after completing all the requirements specified in the Law on Supervision of Finance Companies and its Implementing Regulations.
3- SAMA will issue a written notice informing the applicant of either preliminary approval or rejection within (60) days from the day on which SAMA has accepted the license application as being completed. The preliminary approval does not constitute a license or approval to practice the finance activity(ies).
4- For new finance companies, the request will be sent to the Ministry of Commerce and Industry to complete the procedures for the establishment of the new company and registration in accordance with Company Law. After the company is established, it will need provide SAMA with copies of its commercial registration and the articles of association, reflecting the finance activities as per the preliminary approval and verification that capital has been paid in full, and that any additional initial funding as set out in the business plan has been provided to the finance company. The company should also provide verification that it has taken all necessary measures to start carrying out the planned finance activities, including the establishment of all necessary personnel, system, equipment and functions.
5- For existing finance companies, the company should modify the commercial registration and articles of association, and make necessary adjustments to comply with regulatory requirements, and provide SAMA with proof of such.
6- SAMA supervisors will visit the finance company or the bank to meet their officers, and review their systems, procedures and records to verify that the regulatory requirements are met and to ensure the readiness of the company or bank to start the finance activity.
7- SAMA will grant a License after completing all the regulatory requirements and pay financial charge as set forth in Article (22) of the Implementing Regulations of the Law on Supervision of Finance Companies.
Frequently Asked Questions
General Questions
• What are the financing activities that require a license from SAMA?
No person is allowed to practice any finance activity unless it has a license from SAMA in accordance with the Law on Supervision of Finance Companies and its implementing regulations and related laws.
• How can the licensing application forms be obtained?
The finance laws and regulations as well as the application forms are available on the finance section of SAMA's website on the following link: http://www.sama.gov.sa/Finance
• How can the licensing application forms be obtained in English language?
The English versions of the licensing application forms are available on the finance section of SAMA's website on the following link: http://www.sama.gov.sa/sites/samaen/Finance
• Are there different license application forms for new finance companies, existing finance companies and banks?
There are three types of licensing applications:
First: New Financing Company application: Relevant for companies which are going to be established for practicing finance activities.
Second: Existing Financing Company application: Relevant for companies and establishments with ongoing operations in the finance sector before the Law on Supervision of Finance Companies cane into force. Such companies and establishments are subject to the provisions of Article (36) of the Law on Supervision of Finance Companies and Article (97) of the Implementing Regulations of the Law on Supervision of Finance Companies.
Third: License Application for a Bank to practice Real Estate Finance and Financial Lease: Relevant for banks applying for license to practice real estate finance and/or financial lease activity(ies).
• What are the documents that should be included in the license application?
The license application should include the license application form as set by SAMA, in accordance with the sections identified in the application after its completion, accompanied by all the requirements set forth in article (7) of the Implementing Regulations of the Law on Supervision of Finance Companies as well as the checklist in the license application. The electronic copy of the license application forms is available on the finance section of SAMA's website.
• Does the applicant need to provide a feasibility study and business plan for the next five years within the license application?
All the applicant must submit a feasibility study and business plan for the next five years with the license application in accordance with the details identified in the checklist of the license application form.
• Does the applicant need to submit an electronic copy or hard copy of the licensing application form?
The applicant must submit a hardcopy of the forms and documents in the checklist is to be submitted along with a CD or USB containing an identical softcopy of the completed licensing application.
• What are the minimum capital requirements for obtaining a license for different financing activities?
Minimum capital requirements for obtaining a license for finance companies are based on financing activity and are as follows:
• For finance company carrying out only real estate finance activity, the minimum capital is SR 200,000,000
• For finance company carrying out one or more financing activity other than real estate finance and microfinance, the minimum capital is SR 100,000,000
• For finance company carrying out only microfinance activity, the minimum capital is SR 10,000,000
• Can one license application be submitted for more than one type of financing activities?
A license application may submitted for more than one of the finance activities specified in Article 10 of the Law on Supervision of Finance Companies, subject to the following:
- Companies that are licensed to conduct real estate finance shall not conduct any finance activities other than real estate finance.
- Companies that are licensed to conduct microfinance shall not conduct any finance activities other than microfinance.
- Companies that are licensed for finance activities other than real estate finance are prohibited from financing real estate in any form.
• Where and how does the finance company submit all supporting documents?
All applicants must submit the application form and supporting documents to the General Department for Finance Companies Supervision at SAMA to the following address:
Saudi Arabian Monetary Agency
Al-Ma'ather Street, Riyadh
Kingdom of Saudi Arabia
Telephone: +966-1- 466-2020
• How can the applicant communicate with SAMA regarding to the status of the application?
All applicants can communicate with SAMA through the email of the General Department for Finance Companies Supervision (finance@sama.gov.sa). For all correspondence with SAMA, the applicant ID number must be included.
• How long does SAMA take to evaluate an application?
It varies from case to case and on the type of the activity as well as the quality and completeness of the documents submitted with the license application. However, SAMA will notify the applicant in writing, within (60) days from the date of accepting the license application as being complete, of whether the license has received a preliminary approval or rejection, giving its reasons in case of a rejection. The preliminary approval does not constitute a license or approval to practice the Finance Activity.
• What is the difference between the preliminary and the license?
Preliminary approval enables the applicant to continue the process of establishing the finance company. The license will be granted once all requirements as set forth by the laws and regulations governing finance companies are complete.
• What is the specific duration to complete the process of establishing the company?
All the applicants must establish the Finance Company as a joint stock company within six months of granting the preliminary approval, and provide SAMA with copies of the Finance Company's commercial registration and articles of association, reflecting the licensed activities in accordance with the preliminary approval. The preliminary approval will expire after six months unless SAMA extends its duration for a maximum of another six months.
• What is the financial charge for issuing, renewing, or amending the license?
Financial charge will be as follows:
• Issuance of new license = SR 200,000
• Renewal of license = SR 100,000
• License amendment = SR 50,000
For microfinance companies, financial charge for issuing, renewing, or amending the license is SR 10,000.
• Does the company need a non-objection from SAMA to launch a new financing product or making an amendment to the existing products?
SAMA's non-objection letter is required for launching new products or making amendments to existing products.
• How does the applicant pay the financial charge?
The financial charge must be submitted before receiving the license and must be paid by a certified check for the name of the “Saudi Arabian Monetary Agency”.
• What is the validity of the finance company license issued by SAMA?
The license will have a validity of five years and it could be renewed by SAMA based on a request by the finance company in accordance with the requirements of the regulations.
• When does a company need to renew its license?
All the licensed finance companies must submit to SAMA a request to renew their license at least six months prior to the expiry of the license, as set forth by the article (17) of the implementing regulations of the Law on Supervision of Finance Companies.
Questions Related to New Companies
• If the applicant is a new company, does it need to be established before or after submitting the license application?
The applicant must submit the license application to SAMA before the establishment of the new company. After the application receives preliminary approval, SAMA will send the request to the Ministry of Commerce and Industry so the applicant may proceed with establishment procedures and registration of the company according to Company Law.
• If the applicant is a new company, and has foreign shareholder(s), does it first need to apply for foreign investor license before submitting the licensing application?
The applicant must submit the licensing application to SAMA before applying for foreign investor license.
• Does the new company need to provide a bank guarantee within the license application?
All the new companies must submit a bank guarantee, in the form set by SAMA, for an amount equal to the minimum capital of financing activity or activities to be licensed, in accordance with article (7) of the implementing regulations of the Law on Supervision of Finance Companies.
Questions Related to Existing Companies
• What does existing companies mean?
Existing companies means that the companies and establishments that are already conducting finance business in the Kingdom of Saudi Arabia before the law entered into force. Such companies and establishments are subject to the provisions of article (36) of Law on Supervision of Finance Companies and article (97) of the implementing regulations of the Law on Supervision of Finance Companies.
• Is there a deadline for the existing companies to apply for a license?
Existing companies and establishments need to submit their license application and compliance plan, or provide SAMA with their plan to exit the market, by end of business hours on Wednesday 14/10/1434H (21/8/2013G).
• Does the applicant need to provide a feasibility study and business plan for the next five years within the license application?
All the applicants must submit a feasibility study and business plan for the next five years within the license application in accordance with the requirements set forth in the checklist of the existing companies license application form.
• Does the existing company need to provide a bank guarantee within the license application?
All the existing companies whose paid-up capital is less than the minimum capital for the finance activity(ies) requiring a license must submit a bank guarantee, as per the form set by SAMA, for an amount equaling the difference between the minimum capital for the finance activity(ies) requiring a license and the paid-up capital of the finance company.
Questions Related to Commercial Banks
• What are the financing activities that the banks need license for?
The Real Estate finance and the financial lease.
• What are the document requirements for submission by a bank?
The license application should include the license application for the commercial banks as set by SAMA, after its completion, accompanied by all the requirements set forth in the checklist in the commercial banks license application forms. The electronic copy of the license application forms is available on the finance section of SAMA's website.
• Is there a deadline for the commercial banks to apply for a license?
All commercial banks that want to continuing practicing the activities of real estate finance and/or financial lease must apply for licensing by end of business hours on Wednesday 14/10/1434H (21/8/2013G).
Medical Expenses Insurance - Actuarial Pricing 2017
This Circular has been subsequently superseded by circular No. (TA'M/165/201808), dated 02/12/1439H, Corresponding To 13/08/2018G, and circular No. (TA'M/247/202204), dated 25/09/1443H, Corresponding To 26/04/2022G.Remuneration for Chairs and Members of Boards of Directors of Local Banks, Insurance Companies and Reinsurance Companies
This Circular has been superseded by SAMA circular No. (45048798), dated 25/07/1445H, Corresponding To 04/02/2024G.The New Tariff for Banking Services
No: M/A/1/291 Date(g): 12/8/1979 | Date(h): 20/9/1399 Status: Superseded The Tariff for Banking Services have been replaced by The Banking Tariff, accordance to SAMA circular No. (341000134319), dated 25/11/1434H, corresponding to 29/09/2013G.SAMA has conducted a comprehensive study of the fees charged by the banks for their services. The study covers fees charged by banks in various parts of the world.
A considerable time has elapsed since SAMA issued the schedule of tariff for banks. Hence, it became necessary to make this study, keeping in view the rapid economic growth witnessed by the Kingdom and the expansion of banking business which SAMA encourages to promote banking habit among the public.
In the light of the said study, SAMA has introduced a new tariff for banking services (a copy is enclosed her with), which supersedes the old tariff issued under SAMA's circular No. 1/5288/71 dated 22.12.1379. The new tariff shall be effective as from 10.10.1399.
SAMA has kept in view that the new tariff should reflect the state of our economy and be moderate and reasonable as well as the need to spread the banking habit.
You are kindly requested to circulate this tariff to all your branches and to place it at a prominent place in your bank and its branches so that customers could see it easily. The tariff will apply as from the date mentioned above.
Prudential Returns Concerning Information Regarding Consumer Loans
This Circular has been superseded by SAMA circular No. (361000032080), dated 29/02/1436 H, Corresponding To 21/12/2014 G.Schedule of Charges Applicable to Firms, Companies & Individuals
1- DOC. L/C (import credits)
(a) Opening or issuing new tariff
1/4% on first SR. 400.000 (or equivalent) for 3 months (or part thereof)
1/8% on additional amounts above SR. 400.000 (or equivalent) for 3 months (or part thereof)
1/16% per month after 3 months (or part thereof)
(b) Confirming
actual amount as charged by correspondent.
(c) Advising
SR. 20 (flat rate)
(d) Negotiation
no charge
(e) amendment:
involving increase of amount as per (a) above on tariff
other amendments
SR. 25 + telex, cable or mail charges
(f) Cancellation of unutilized letter of credit
no charge
(g) Miscellaneous
no charge
(importer will be allowed 7 days grace to retire the bill after receipt of advice from the bank)
2 - Collection (incoming/outgoing)
(local/foreign currency)
(i) payable within the country
(a) clean bills on branch - free
(including cheques) on others - SR.5
(b) documentary bills
on branch-free
on others - 1/10% + postal charges (min.SR. 10 max. SR. 100)
(ii) Payable outside the country
(a) clean (including cheques)
SR. 1 per thousand + postal
charges (min. SR. 10 max. SR. 100)
(b) Documentary
SR. 1 per thousand + postal
charges(min.SR.25 max.SR.250)
3 - Remittances new tariff
to places within the country
(i) draft/mail transfer
SR.5 upto SR.10.000
SR.10 over SR. 10.000
(ii) Cable/telex transfer
SR. 10 upto SR. 10.000
SR.20 over SR. 10.000+actual telex /cable charges
to places outside the country
(i) cable/draft/mail/transfer
SR. 1 per thousand
(min. SR. 10 max. SR. 50+actual cable /telex charge for cable or telex transfer
4 - Commission on
(i) sale of travelers cheques or personal letters of credit 1%
(ii) purchase of travelers cheques no charge
(iii) incoming drafts or payments orders no charge
(iv) negotiation of drafts under personal letters of creditno charge
5 - Charge for collection items returned unpaid
(no other collectionsr commission to be charged).10 per item (flat rate)
(a) foreign collection
(b) local collection (including clearing cheques) - no charge
6 - Charges on accounts current account
(a) Balance requirement for balance less than SR. 1000 SR. 15 per half year. balance above SR. 1000 no charge saving account-no charge
(b) Statement of account no charge
(c) Account closed no charge
(d) lost cheque book SR. 10
(e) standing instructions SR.5 on each payment
7 - Commission on guarantees
1/4% on the first SR.10 million
1/8% on additional amount (per annum)
for missing bill of lading- SR.20 (flat rate)
8- Miscellaneous above SAMA rate:
(a) Foreign exchange selling rate
(a) 1/8% on the first U.S.$ 1 million
(b) 1/6% on additional amount
note:
(the above rates are maximum rates and lower rate can be offered)
Deletion of the Requirement No. 7 of the Rules of Opening and Operating the Accounts of Foreign Institutions Invested in Saudi Shares
This section is currently available only in Arabic, please click here to read the Arabic version.Rules of Opening and Operating the Accounts of Foreign Institutions Invested in Saudi Shares
The Rules Governing the Opening of Bank Accounts and General Operational Guidelines in Saudi Arabia, Fourth Amendment have been superseded by the Rules for Bank Accounts issued by circular No. (65681/67), dated 01/11/1440H, corresponding to 03/07/2019G.Second Amendment for Opening and Operating Bank Accounts in the Kingdom
These rules have been superseded by the Rules for Bank Accounts issued by circular No. (65681/67), dated 01/11/1440H, corresponding to 03/07/2019G .Minimum Capital Requirements for Market Risk-2016
This circular has been superseded by SAMA circular No , (44047144), dated 04/06/1444 H, Corresponding To 27/12/2022 G. Refer to SAMA Minimum Capital Requirements for Market Risk framework.Background
The new standard from the Basel Committee on Banking Supervision (BCBS) sets out revised minimum capital requirements for Market Risk and replaces the existing minimum capital requirements for market risk in the global regulatory framework, including amendments made after the June 2006 publication of Basel II: International Convergence of Capital Measurement and Capital Standards - Comprehensive Version. Consistent with the policy rationales underpinning the Committee's three consultative papers on the Fundamental Review of the Trading Book, the revised market risk framework consists of the following key enhancements:
• A revised Internal Models Approach (IMA). The new approach introduces a more rigorous models approval process that enables supervisors to remove internal modelling permission for individual trading desks, allows more consistent identification and capitalisation of material risk factors across banks, and introduces constraints on the capital-reducing effects of hedging and diversification. • A revised Standardised Approach (SA). The revisions fundamentally overhaul the standardised approach to make it sufficiently risk-sensitive to serve as a credible fallback for, as well as a floor to the IMA, while still providing an appropriate standard for banks that do not require a sophisticated treatment for market risk. • A shift from Value-at-Risk (VaR) to an Expected Shortfall (ES) measure of risk under stress. Use of ES will help to ensure a more prudent capture of "tail risk" and capital adequacy during periods of significant financial market stress. • Incorporation of the risk of market illiquidity. Varying liquidity horizons are incorporated into the revised SA and IMA to mitigate the risk of a sudden and severe impairment of market liquidity across asset markets. These horizons replace the static 10-day horizon assumed for all traded instruments under VaR in the current framework. • A revised boundary between the trading book and the banking book. Establishment of a more objective boundary will serve to reduce incentives to arbitrage between the regulatory banking and trading books, while still being aligned with banks' risk management practices.
SAMA has conducted a consultation process with the Saudi Banks in the development of this regulation, which has resulted in preparation of the following documents:
• Annexure 1: Changes in the Q17 templates. Please ensure that these templates are cross-validated and reconciled to other Q17 templates. • Annexure 2: Frequently Asked Questions (FAQs) and answers and National Discretions
Implementation date
These rules are applicable from 1 January 2019 as specified in the Basel document with first quarterly reporting applicable from 31 December 2019. However, all banks should approach SAMA for approval of their trading desks and should submit the documents and requirements as stated in key element 1- 4 {page 68, 69) of the Basel document by 30 June 2018.
Third Amendment to the Rules for Opening and Operating Bank Accounts
These rules have been superseded by the Rules for Bank Accounts issued by circular No. (65681/67), dated 01/11/1440H, corresponding to 03/07/2019G.Instructions on Forms for Banknote Stacks of Sixth Edition of Saudi Currency - 2020
This Circular has been superseded by SAMA circular No. (42065141), dated 19/09/1442H, Corresponding To 25/04/2021G.Saudi Arabian Trade Repository
This Circular has been superseded by SAMA circular No. (67/16278), dated 13/03/1441H, Corresponding To 10/11/2019G, updated by SAMA circular No. (42056371), dated 10/08/1442H, Corresponding To 23/03/2021G .Stopping the Monthly Deduction from the Bank Accounts of Borrowers from the Real Estate Development Fund for Residential Purposes for those Whose Accounts Were Deducted before 3/4/1432
The requirements in this Circular are no longer applicable as per SAMA circular No. (341000028806), dated 04/03/1434H, Corresponding To 15/01/2013G.Enabling Bankruptcy Trustees to Exercise the Powers Granted to them Under the Bankruptcy Law and Its Implementing Regulations
This Circular has been superseded by SAMA circular No. (42066419), dated 20/09/1442 H, Corresponding To 01/05/2021 AD.AML & CTF rules (Second Update)
Rules on Large Exposures of Banks - 2015
These Rules have been respectively updated by SAMA circulars No. (391000059150), dated 22/05/1439 H, Corresponding To 07/05/2018 G, and No. (45201/41), dated 14/10/1439 H, Corresponding To 27/06/2018 G, and have been superseded by the Large Exposure (LEX) Rules for Banks, (1651/67), dated 09/01/1441 H, Corresponding To 08/09/2019 G.Rules on Large Exposures of Banks -2018
These Rules have been updated by SAMA circular No. (45201/41), dated 14/10/1439 H, Corresponding To 27/06/2018 G, and have been superseded by the Large Exposure (LEX) Rules for Banks, (1651/67), dated 09/01/1441 H, Corresponding To 08/09/2019 G.The Guidelines on Standing Orders for Real Estate Financiers-2020
These Guidelines were replaced by The Guidelines on Standing Orders for financing entity, No. (43033273), dated 13/04/1443h, corresponding to 18/11/2021Trade Repository Operator Rules and Regulations
These rules have been replaced by the Principles on Trade Repositories, issued by SAMA circular No. (000045049500), dated 27/07/1445H, corresponding to 06/02/2024G.Rules Governing disposal of Finance Assets or Their Contractual Rights-2015
These Rules were issued by circular No (361000145658), dated 18/11/1436H, and updated by Circular No. (60558/99), dated 09/10/1440 AH corresponding to 12/06/2019 AD.