Referring to the requirements for appointment to leadership positions in financial institutions under the supervision of the Central Bank, as communicated in accordance with... Circular No. (1994/67) dated 10/1/1441HThe text specifies the minimum eligibility standards that financial institutions must adhere to when evaluating the suitability of individuals occupying or being considered for leadership positions. It stipulates that a person in a leadership role must have the necessary independence to perform the tasks and duties associated with the position and must not have interests, job commitments, or any other circumstances that could lead to a conflict of interest or affect their ability to perform the duties of the position in any way. In reference to the principles of conduct and work ethics in financial institutions, as communicated by ... Circular No. (72203/67) dated 4/12/1440 AH "Including a number of professional commitments for employees of financial institutions."

Given that the Central Bank issued the aforementioned instructions based on a number of regulations that it supervises, due to the nature of the financial sector and the importance of the efficiency of individuals holding leadership positions, and their ability to perform their tasks in the best manner possible, and considering that assigning or appointing any individual holding leadership positions in financial institutions to general or specific tasks or other responsibilities such as memberships in boards of directors, committees, or similar entities; may impact the ability of those in leadership positions within financial institutions to fulfill their job obligations and duties as stipulated in the regulations and Central Bank instructions or the internal policies of financial institutions in the best possible manner. Additionally, there is a potential for conflicts of interest between their functions in financial institutions and the positions for which they are nominated or occupy, which may influence the Central Bank's decision to grant non-objection to holding the leadership position in the financial institution.

Based on the above, the financial institution must take the necessary steps to modify its internal policies to ensure that the incumbents of its leadership positions obtain the financial institution's approval and meet the Central Bank’s non-objection requirements before accepting nomination or appointment/reappointment with any public or private entity, or assuming other responsibilities such as membership in boards of directors, committees, or similar roles. It should be noted that non-compliance with this is covered under the provisions of Article (20) of the aforementioned requirements.

refer to SAMA circular No. (1994/67), dated 10/01/1441H, and it's amendments, to read the updated and the amended Requirements for Appointments to Senior Positions.