The Mandatory Requirement of Using Qawaem Program Before Providing Credit Facilities to Commercial Entities
| No: 605960000067 | Date(g): 12/6/2019 | Date(h): 9/10/1440 |
Translated Document
Further to the instructions issued by SAMA under Circular No. 371000002391 dated 7/1/1437 H regarding urging banks operating in the Kingdom to participate in "Qawaem" program prepared by the Ministry of Commerce and to rely solely on the reliable financial statements available in this program, which aims to enhance and increase work efficiency, benefit from deposited financial statements, and strengthen the credibility and reliability of accounting information, in addition to raising the level of transparency for commercial entities.
Given the program's contribution to improving the quality and reliability of accounting information, which is considered one of the main sources for assessing credit risks for commercial entities, SAMA emphasizes that all banks operating in the Kingdom must commit to using the "Qawaem" program as a source for obtaining the financial statements of commercial entities required to be deposited in the program before granting any credit facilities or during the periodic internal update process for assessing credit risks.
For your information and action accordingly as of 16/8/2019.