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Creation and Regulation of the Statutory Reserve for Money changers

No: 44025244 Date(g): 19/10/2022 | Date(h): 24/3/1444 Status: In-Force

Translated Document

Based on the powers vested to the Saudi Central Bank under Its law issued by Royal Decree No. (M/36) dated 11/04/1442H. and The Rules Regulating Money Changing Business , issued by ministerial decision No. (4686) dated 21/11/1441H. Based on the role of SAMA in supporting the stability of the exchange sector, enhancing confidence in it, and increasing the capability of financial centers, and to assist Money changers in facing risks and the ability to sustain and grow; It has been decided as follows:

  1. Money changers must allocate at least 10% of their annual net profits, after covering any accumulated losses if any, to create a statutory reserve. Money changers are permitted to stop this allocation if the total amount reaches 30% of the paid-up capital.
  2. Money changers must obtain SAMA's written non-objection before using the statutory reserve mentioned in paragraph (1) of this circular.
  3. The provisions stated in this circular do not affect the required cash reserves that money changers must maintain according to Article (7) of the rules regulating money changing business.

For your information and to act accordingly from this date, money changers must take the necessary regulatory measures to implement and adhere to what is stated in the circular.