| 1. | SAMA may withdraw or suspend licenses granted to Banks to engage in Agent Banking business in any of the following cases:
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| | a. | Violating any provisions hereof as may, in the opinion of SAMA or the contracting Bank, warrant termination of the agency contract; or
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| | b. | Furnishing contracting Bank(s) with false or inaccurate information under this Regulation.
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| 2. | Subject to the provisions for termination of the agency contract set out in the contract, the Bank must terminate an agency contract in any of the following cases:
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| | a. | if the Agent is guilty of a criminal offense involving fraud, dishonesty or any other forms of financial impropriety;
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| | b. | if the Agent, where it is a legal person, is being dissolved or wound up through a court order or otherwise;
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| | c. | if the Agent, where it is a sole proprietor, dies or becomes mentally incapacitated;
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| | d. | if the Agent transfers, relocates or closes its place of agency business without the prior written consent of the contracting Bank;
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| | e. | if the Agent carries on Agent Banking business when the Agent’s principal commercial activity has ceased;
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| | f. | if the Agent sustains a financial loss or damage to such a degree that, in the opinion of the Bank, makes it impossible for the Agent to gain its financial soundness within three months from the date of the loss or damage; or
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| | g. | if the Agent fails to hold or renew its valid business license.
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| 3. | Where a dispute arises between a Bank and its Agent, the parties must exert every effort to settle the dispute within a period of 10 (ten) business days from the date of such dispute. If the dispute is not resolved within this stipulated period and the litigation is sought, then the Bank must begin preparations to terminate the agency within the timeframes mentioned herein before litigation starts.
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| 4. | Where an Agent Banking contract is terminated, the Bank must publish a notice of the termination in the locality where the Agent was operating or in any other manner, such as SMS messages, to adequately inform the general public of the cessation of the Agent Banking contract.
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| 5. | Upon termination of the Agent Banking contract, the Bank may not re-contract with the Agent, whose agency contract was cancelled, after changing its commercial name.
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