Chapter VIII: Compliance
No: 43083271 Date(g): 26/4/2022 | Date(h): 25/9/1443 Status: In-Force Article 31
The Company shall comply with applicable laws, regulations and instructions, and must take the necessary measures and procedures to avoid breaching their provisions.
Article 32
The Company shall:
1. Establish a compliance department or function, and assign a head of compliance reporting directly to the audit committee. Moreover, the audit committee shall raise their views about compliance reporting to the board.
2. Develop a written compliance policy to set out the functions, tasks and responsibilities of the compliance department and determine compliance programs and relevant processes. The compliance policy must be approved by the board. The audit committee, must ensure the implementation of the policy, evaluate its effectiveness, update it and propose the necessary amendments on an annual basis.
3. Take the necessary procedures to ensure the implementation of the compliance policy referred to in Paragraph (2) of this Article.
Article 33
1. The compliance officer shall be appointed by a decision of the board based on the recommendation of the audit committee, after obtaining a no-objection letter from SAMA.
2. The compliance officer shall act independently regarding their tasks, and they shall not be assigned any other administrative responsibilities.
Article 34
The compliance officer shall submit a semiannual compliance report to the audit committee, and then to the board for review. The report shall identify the main compliance-related risks facing the Company, analyze existing processes and procedures and assess their effectiveness, and suggest any amendments or changes.
Article 35
The compliance department must have staff and resources commensurate with the business model and size of the Company. Compliance employees must report solely to the head of compliance.
Article 36
The compliance department shall ensure the Company’s compliance with applicable laws, regulations and instructions. It shall particularly perform the following tasks:
1. Identify and address risks of non-compliance and monitor their developments.
2. Analyze new policies, procedures and processes and suggest procedures to address relevant compliance risks.
3. Adopt a risk-based compliance program and include its findings in the report referred to in Article (34) of these Rules.
4. Formulate compliance-related guidance to staff where necessary.
5. Ensure that real estate financiers have internal policies and procedures to combat financial crimes, such as money laundering and terrorist financing.
6. Monitor compliance with all applicable anti-money laundering and counter terrorist financing laws, regulations, and rules.
7. Promote awareness of compliance issues and provide training to staff on compliance-related matters through periodic programs.
8. Immediately report to SAMA, and the audit committee any irregularities or violations.
Article 37
The Company shall comply with the legal requirements mentioned in the Anti-Money Laundering Law, Combating Terrorism Crimes and their Financing Law, their Implementing Regulations, and the relevant rules and guidelines as specified by SAMA, in a manner that is consistent with the nature and size of the Company’s activity and the risks it may be exposed to. The Company shall also comply with the requirements and instructions issued by SAMA on financial crimes and fraud.
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SAMA Regulatory Rulebook has no legal effect and it does not aim to amend or revoke any legal provisions. The Rulebook still Contains some documents under review, including translated versions. Therefore, SAMA Regulatory content circulated through SAMA official channels remains in force.
Without prejudice to the terms of use of SAMA website Hereby, you acknowledge that any illegal, unauthorized use and/or any breach of any of these provisions may result in legal actions against you.
Your access and use of SAMA Regulatory Rulebook and its content is considered as an acceptance and approval of commitment by you without any limitation or condition to the following:
SAMA Regulatory Rulebook is a platform that aims to assist the regulated entities to access SAMA regulatory content adeptly and efficiently.
SAMA Regulatory Rulebook is still on its development and soft launch stage. SAMA is not liable for its contents and does not warrant or represent that (the Services related to the platform, information or material presented in the platform) is displayed free of any inaccuracies, omissions, or errors (“Faults”). SAMA accepts no liability for any loss, claim or damage resulting from any use of the platform, and any decisions made, or actions taken based on the information contained in or generated by the platform.
SAMA Regulatory Rulebook has no legal effect and it does not aim to amend or revoke any legal provisions. The Rulebook still Contains some documents under review, including translated versions. Therefore, SAMA Regulatory content circulated through SAMA official channels remains in force.
Without prejudice to the terms of use of SAMA website Hereby, you acknowledge that any illegal, unauthorized use and/or any breach of any of these provisions may result in legal actions against you.