Provide SAMA with Annual and Quarterly Financial Statements and Annual Reports on internal control systems
| No: 35217/41 | Date(g): 11/2/2019 | Date(h): 6/6/1440 | Status: In-Force |
Translated Document
Based on the provision of paragraph (c) of Article 15 of the Rules Governing Money Changing Business, issued by the decision of the Minister of Finance No. (1357) dated 1/5/1432H, which states: "SAMA may issue any instructions it deems necessary to implement supervisory and regulatory requirements for money exchange activities," and based on Article 17 of the rules, which states: "Every money exchanger must maintain regular accounting records in which its operations are recorded promptly, in accordance with what is specified by SAMA. They must follow the accounting standards set by SAMA when preparing their financial statements, and they must provide SAMA with the following financial data:
| a) | A copy of the audited annual balance sheet by a licensed external auditor within a maximum period of one month from the end of the financial year. | |
| b) | A financial statement every three months, starting from the beginning of the financial year, to be submitted within fifteen days of the end of the following quarter, "Additionally, Article 19 of the rules states: "The money exchanger must provide SAMA with a copy of the audit report on its annual financial statements, which should include any observations regarding these statements and their compliance with the applicable regulations and standards. |
Based on the above, money changers must adhere to the following:
| First: | Quarterly financial statements: | ||
| A- | SAMA emphasizes the importance of providing it with the financial position every three months, starting from the beginning of the financial year, within fifteen days of the subsequent quarter, in accordance with the provisions of paragraph (b) of Article (17) of the Rules Governing Money Changing Business. | ||
| B- | Providing SAMA with the quarterly financial statements reviewed by a licensed external auditor in accordance with the accounting standards applicable in the Kingdom, within 30 days of the subsequent quarter. | ||
| Second: | Annual financial statements: | ||
| A- | SAMA emphasizes the importance of providing it with the audited annual financial statements by a licensed external auditor in accordance with the accounting standards applicable in the Kingdom, within a maximum period of one month from the end of the financial year, in accordance with the provisions of paragraph (a) of Article (17) of the Rules Governing Money Changing Business. | ||
| B- | Providing SAMA with the audited annual financial statements by a licensed external auditor in accordance with the accounting standards applicable in the Kingdom, as stipulated in Article (19) of the Rules Governing Money Changing Business, within a maximum period of two months from the end of the financial year. | ||
| Third: | The total duration of the appointment of the external auditor for the Money changer should not exceed five consecutive years. | ||
| Fourth: | Annually instructing the external auditor to assess the internal control systems in place at the money changer, and providing SAMA with a copy of the report within a maximum period of two months from the end of the financial year. This report should be separate from the annual financial statements. | ||
| Fifth: | Sending the annual and quarterly financial statements and the internal control systems report along with a scanned electronic copy of the money changer's letter to the email address (MEXCH@SAMA.GOV.SA), and a hard copy addressed to the Money changers Supervision Division. | ||
To be reviewed and acted upon starting from the financial year 2019, with acknowledgment of receipt within one week from the date hereof. Please note that SAMA will take all necessary legal measures against money changers that violate the provisions of this circular.
In accordance with Circular No. (44017957) dated 03/03/1444H, money changer must adhere to the following:
- In accordance with paragraph (A/7) of Article (14) of the regulations, conduct a periodic independent test, at a minimum once a year, to assess the Money Changer’s operations, including the systems, and to assess the compliance with its internal policies and procedures. This test should be completed by the end of July of each calendar year at the latest.
- Compliance with the provisions of paragraph (C) of Article (31) of the regulations, which requires the external auditor to evaluate the internal control systems. The report should, at a minimum, include any observations regarding compliance with the provisions of the Rules Regulating Money Changing Business.