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Article 8

Date(g): 13/6/2023 | Date(h): 25/11/1444 Status: In-Force

Effective from Jun 13 2023 - Jun 12 2023
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The applicant for a license to provide payment services - or his representative - shall submit the license application to SAMA, attaching the following documents:

 1.License application form as determined by SAMA.
 2.A detailed description of the services that he wishes to obtain a license to practice, as stipulated in Article [6] of the Regulations.
 3.The applicant’s draft articles of association and articles of incorporation, or approved copies thereof if the entity is established outside the Kingdom, taking into account the relevant regulations in the Kingdom.
 4.Description of the organizational structure that explains all administrative units, their main roles and tasks and details of the roles of senior positions.
 5.A list of all controllers, indicating their number and the percentage of ownership owned by each of them, along with attaching suitability forms for controllers signed by them, as determined by the requirements for appointment to senior positions issued by SAMA for all financial sectors.
 6.Suitability forms for occupants of senior positions as determined by the requirements for appointment to senior positions and issued by SAMA for all financial sectors.
 7.A feasibility study explaining the target group, the services to be provided, the proposed business model and the applicant’s strategy, signed by the applicant.
 8.A three-year business plan that includes - at a minimum - the following:
   A.A detailed overview of the services required to be licensed, the products and the marketing plan.
   B.Estimated financial statements, expected annual revenues, expenses, financial margins and target growth rates, taking into account SAMA’s requirements in relation to capital adequacy and liquidity assessments.
   C.Estimation of the costs of establishment and the financing method thereof.
   D.Estimation of the ongoing funding for transactions.
   E.Clarification of the expansion plan and establishment of branches in the Kingdom, if any.
   F.Plans and programs in relation to monitoring and managing risks and ensuring the effective management of compliance tasks.
   G.The employment and training plan, including the expected number of employees and the percentage of non-Saudi employees - in accordance with relevant requirements - in each department and each organizational level and employee qualification programs.
   H.Information about commercial and investment activities and the like - not subject to the scope of the Law and Regulations - that the applicant will practice directly, or will be practiced under his supervision or in accordance with his directions, including his affiliated establishments. 
 9.Draft relevant policies and procedures that demonstrate the ability to comply with the requirements stipulated in the Law and Regulations, as well as any other instructions issued by SAMA.
 10.An irrevocable bank guarantee issued in favor of SAMA by any of the banks licensed in the Kingdom according to the form specified by SAMA, in an amount equivalent to the minimum capital required for the service or services for which the applicant requests a license. The bank guarantee shall be renewed automatically until the full required capital is paid in accordance with the provisions of the Regulations. The bank guarantee shall be considered void in the following cases:
   A.If the capital is paid in full in accordance with the provisions of the Regulations, unless SAMA decides to continue the bank guarantee in whole or in part or requests the provision of a bank guarantee for the post-licensing phase as it deems appropriate, as additional precautionary requirements.
   B.If the license application is withdrawn.
   C.If SAMA rejects the license application.
 11.Draft proposed agreements and contracts that contain substantive obligations with all third parties, including agreements and contracts with related parties and third-party service providers.
 12.If the license application is made for a large electronic money company or a large payment company, a business continuity plan and a market exit plan shall be submitted and processed, provided that it shall include the automated plans to be performed by the applicant regarding managing risks relating to liquidity, operational risks and the risks of terminating activity and exiting the market.
 13.Any other documents or information requested by SAMA.