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Providing SAMA a Prepared Quarterly risk report, audited and quarterly annual financial statements to be Published on SAMAs' Website

No: 44028131 Date(g): 27/10/2022 | Date(h): 2/4/1444 Status: In-Force

Effective from 2022-10-27 - Oct 26 2022
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Based on the powers granted to the Central Bank under the relevant regulations and instructions, we wish to inform that crowdfunding institutions are required to adhere to the following:

First: 

Crowdfunding institutions must prepare a quarterly risk report to be discussed by the Risk and Credit Management Committee (if applicable) and the Board of Directors. This report, following review by senior management and approval by the Board, should include at least the following:

  1. A comprehensive assessment of the risks faced by the company as mentioned in Article (20) of the updated Crowdfunding Activity Rules, including measures taken to mitigate these risks, and a review of the performance of financial positions exposed to market price fluctuations, as well as situations where allowed operational limits are exceeded.
  2. Assumptions and factors used in evaluating risks, including: risk categories, risk levels, frequency, risk units, and changes occurring in these areas.
  3. Analysis of situations where the institution has exceeded allowable limits, including reasons and the extent of new business developments and provisions set aside by the company.
  4. Evaluation of disclosure standards to ensure they cover understanding of funding opportunity risks.
Second: Provide the Central Bank with the report mentioned in item (1) above after it has been discussed by the Risk and Credit Management Committee (if applicable) and the Board of Directors, including the decisions taken, within (30) business days from the end of March, June, September, and December each year.
Third: Provide the Central Bank with quarterly financial statements and the auditor’s report within (20) business days from the end of March, June, and September each year.
Fourth: Provide the Central Bank with annual audited financial statements, the auditor’s report, and the Board of Directors' report within (45) business days from the end of the calendar year. 
Fifth: Provide the Central Bank with annual and quarterly prudential data according to the attached approved forms, ensuring the accuracy of all data. Submit this data within (25) business days from the end of March, June, September, and December for quarterly prudential data, and within (60) business days from the end of the calendar year for annual prudential data.
Sixth: Submit the completed prudential data forms electronically in (Excel) format by the deadlines specified in item (5) above, along with a scanned electronic copy of the Certification Statement signed by the Chief Accountant, Chief Financial Officer (CFO), and Chief Executive Officer (CEO) or Managing Director, as applicable.
Seventh: The annual prudential data forms must be reviewed by the company’s external auditor before submission to the Central Bank. Attach a copy of the audit report signed by the external auditor with the forms.
Eighth: 

Publish the auditor’s report, Board of Directors' report, quarterly financial statements, and annual audited financial statements on the company’s website within (10) business days from the due date. This should include:

  1. Balance Sheet.
  2. Income Statement.
  3. Cash Flow Statement.
  4. Board of Directors' Report.