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Chapter 2 General Provisions

No: 199400000067 Date(g): 9/9/2019 | Date(h): 10/1/1441

2. Purpose and Scope

2.1The purpose of these Requirements is to:
 
 a.determine the Senior Positions in the Financial Institutions that require SAMA’s written non-objection on the appointment or interim appointment of candidates, and set out the minimum fit and proper criteria that the Financial Institution has to adopt to assess the fitness and propriety of candidates; and
 
 b.set out the minimum fit and proper criteria and process that Financial institutions have to adopt to assess the fitness and propriety of candidates for positions that do not require SAMA’s non-objection.
 
2.2Without prejudice to any other relevant regulations or instructions, these Requirements shall be applicable to Financial Institutions.
 

3. Priority for Appointment or Interim Appointment

Priority for appointment to Senior Positions shall be given to Saudi candidates. If the Financial Institution nominates a non-Saudi candidate to be appointed or interim appointed to a Senior Position, the Financial Institution shall provide justifications for the nomination, demonstrate the non-availability of a qualified Saudi candidate for the position, develop and include an approved plan for replacement in the written non- objection request submitted to SAMA. The plan shall include the procedures, programs and courses the Financial Institution use and conduct to train and qualify Saudi candidates for such positions, as well as the time period required.

4. Appointment or Interim Appointment to the Following Positions Shall be Limited to Saudi Candidates:

a.Director of Human Resources;
 
b.Director of Information Security/ Cyber Security;
 
c.Director of Information Technology;
 
d.Chief Compliance Officer;
 
e.Director of Anti-Money Laundering and Counter-Terrorist Financing;
 
f.Director of Anti - Financial Crimes;
 
g.Director of Anti -Fraud;
 
h.Director of Legal Affairs;
 
i.Director of Governance/ Secretary of Board of Directors;
 
j.Director of the department concerned with providing information or executing the decisions issued against customers by SAMA (Financial Enforcement Department);
 
k.Director of Customer Services in insurance companies;
 
l.Director of Motor Claims in insurance companies; and
 
m.Director of Individual Sales in insurance companies.
 

5. Replacement and Succession Planning :

5.1The Financial Institution shall develop a policy approved by the board of directors as follows:
 
 a.replacement: determine the senior management positions in the Financial Institution that are held by non-Saudis, and then train Saudi staff to be qualified to hold such positions within a specified period of time; and
 
 b.succession planning: determine the key positions affecting the work and stability of the Financial Institutions, and then train Saudi staff to be qualified to hold such positions once they become vacant, enabling the Financial Institution to continue its work.
 
5.2The Policy provided for in paragraph (1) of this Article shall, as a minimum, include the following:
 
 a.such positions, including, as a minimum, the senior management positions indicated in the attached appendices (1, 2, 3, 4, 5 & 6);
 
 b.specialized training programs and courses to be continuously implemented by the Financial Institutions to train and qualify the Saudi candidates for such positions; and
 
 c.regulatory framework developed for the Policy that includes implementation procedures.
 
5.3The Policy shall ensure the provision of qualified Saudi talents to hold such positions gradually by using the best practices and programs in the field.
 
5.4The Financial Institution’s board of directors and chief executive officer/ managing director/ general director shall follow up the commitment to implement the Policy referred to in this Article.
 

6. Certificates Verification

The Financial Institution shall verify the authentication of the academic and professional certificates of the Senior Positions’ holders and candidates as follows: 
 
a.verify the authentication of the academic certificates issued from institutions outside Saudi Arabia by checking the official seal and the authentication of a government authority, such as the Ministry of Foreign Affairs or Ministry of Education, if the holder is a national of the country issuing the certificate, or the authentication of the Cultural Bureau if the holder is not a national of the country issuing the certificate;
 
b.verify the authentication of the professional certificates through the website of the issuer, if available, or through direct contact by e-mail or other reliable method; and
 
c.verify the authentication of the academic and professional certificates issued by different educational and professional institutions through agencies that carry out certificate verification.