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Issuance of Saudi Central Bank Law

No: 42023191 Date(g): 25/11/2020 | Date(h): 10/4/1442

Translated Document

Referring to the approval issued by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud - may God protect him - on The Saudi Central Bank Law which replaces The Saudi Arabian Monetary Authority Law issued by Royal Decree No. (23) dated 23/5/1377H.

I inform you that the new law does not affect the functions and powers of the Saudi Central Bank (formerly the Saudi Arabian Monetary Agency) and its supervisory and regulatory role stipulated in the relevant current regulations such as the Banking Control Law and the Finance Companies Control Law and the Cooperative Insurance Companies Control Law and other related laws. Therefore, all regulations, rules, and instructions issued by SAMA shall apply.

I also inform you that the Royal Decree stipulated that:

1.The Saudi Central Bank shall replace the Saudi Arabian Monetary Authority in its rights and obligations, and wherever the name appears in related laws, regulations, orders, and decisions.
 
2.The Saudi Central Bank retains the abbreviation SAMA.
 
3.The current Board of Directors of SAMA shall continue to exercise all its powers until a new Board of Directors for the bank is formed in accordance with Article (8) of its regulation.
 
4.Taking into account what is stated in paragraph (1) of Article (4) of the Saudi Central bank Law, the currency issued by SAMA has the feature of circulation and the legal tender power against others, in accordance with the provisions of The Saudi Arabian Monetary Law.
 

Accordingly, all financial institutions are required to adopt the aforementioned new designation within (90) days from the date hereof in all their internal and external communications. It should also be noted that you must update all your documents to reflect SAMA's new initiative.

I hope you respond to this notice in writing to confirm (1) acknowledgment of the contents of this notice, and (2) agreement to comply from this date.