| Banking agent | A legal entity authorized by Saudi Central Bank to provide a financial services on behalf of the commercial bank based on the Regulation of Agent Banking (circular No. 37541/67 dated 1440/06/15 H).
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| Board or Board Directors | a) | In the case of an institution incorporated in Saudi Arabia, the of board of Directors.
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| | b) | In the case of an institution incorporated outside Saudi Arabia, a local board, a management committee or body beyond local management empowered with oversight and supervision responsibilities for the institution in Saudi Arabia.
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| Customer data | Any information or document relating to the affairs or account of a customer (whether held physically or electronically and whether held by the Banks themselves or by Third Party Service Provider on their behalf).
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| Financial data | All financial data including books of accounts, general and sub-ledger, financial statements and various financial data other than Customer Data.
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| Insourcing | An arrangement where a Bank is utilizing personnel provided under a contract with a Third Party Service Provider to undertake certain functions within or outside the Bank's premises, under its direct supervision, control and management.
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| Material outsourcing | Outsourcing of a function or activity that has the potential, if disrupted, to have a material impact on the bank's business operations or its ability to manage risks effectively. The materiality can be assessed by taking the following into consideration:
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| | a) | The financial and operational impact and impact on reputation of a failure of the third party service provider to perform over a given period.
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| | b) | The cost of the outsourcing arrangement as a share of total cost of operations.
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| | c) | The degree of difficulty, including the time taken, in finding an alternative third party service provider or bringing the business function or activity in-house.
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| | d) | The ability of the bank to meet regulatory requirements if there are problems with the third party service provider.
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| | e) | potential losses to the bank's customers and other affected parties in the event of a third party service provider failure.
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| | f) | Affiliation or other relationship between the bank and the third party service provider.
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| | g) | Sharing any customer data whether it is personal, financial or credit.
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| | h) | Sharing any non-published financial data with a third party service provider.
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| | i) | The complexity of the outsourced function or activity i.e., the number of the party that have been involving in the function or the activity include subcontracting.
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| Outsourcing | Involves a bank entering into an arrangement with another party (both domestic and Foreign) to perform, on a continuing basis, a business function or activity which currently is, or could be, undertaken by the bank itself.
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| Overseas | Entities located outside of Saudi Arabia and subject to laws and regulations of the jurisdiction in which they are located.
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| Third-party service provider | An entity undertaking the outsourced activity on behalf of the Banks. (Head Offices and Related entities of Foreign Bank Branches operating in KSA are not considered as Third-Party Service Providers)
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