License Disclosure Instructions
No: 686310000067 Date(g): 18/7/2019 | Date(h): 15/11/1440 Status: In-Force Translated Document
1. Introduction
1.1 These instructions aim to educate customers about the information of financial institutions that enable them to know the regulatory and supervisory authorities subject to them. This aim is achieved through requiring financial institutions to disclose the data and licenses necessary to enhance the confidence of customers and investors.
1.2 These instructions specify all the information that financial institutions shall display in the margins of their correspondence. These instructions shall be interpreted in accordance with the relevant laws, regulations and instructions.
2. Definitions
The following words and expressions - wherever they appear in these instructions - shall have the meanings indicated in front of each of them, unless the context requires otherwise.
Term
Definition
The Central Bank
Saudi Central Bank (SAMA)* Financial Institution
Banks, foreign bank branches, insurance companies, reinsurance companies, licensed self-employed companies, foreign insurance companies, financing companies, credit information companies, exchange companies and institutions, cash centers, payment companies and payment system operating in KSA, which are supervised by SAMA.
Advertisement
It is the advertisement, promotion and guidance by all means and methods of the financial institution’s services and products.
Footnotes
A word or title used in the header or footer of a page to show content of interest, and may appear via the seal of the financial institution (if the financial institution uses seals).
Correspondences
Postal letters, emails, promotional advertisements, and any other documents.
Customers
Consumers and beneficiaries of the services and products provided by financial institutions.
* The Saudi Arabian Monetary Agency was replaced by the name of Saudi Central Bank in accordance with The Saudi Central Bank Law No. (M/36), dated 11/04/1442H, corresponding 26/11/2020G.
3. Scope of Application
These instructions shall apply to all financial institutions mentioned in the above definitions.
4. Commitment Instructions
4-1 The financial institution’s correspondences, office publications, brochures, email and website, smartphone applications, business directories, advertising in the media, promotional press releases, direct communication with potential customers or other people, and social media shall contain footnotes stating that they are licensed and subject to SAMA control and supervision. They shall also contain the information referred to in Paragraph No. (4-4) as a minimum.
4-2 The foreign branches of the Saudi financial institution operating in other countries may add this information to their means of communication (to avoid confusion among customers), provided that this does not conflict with the regulations of the country in which they operate.
4-3 The announced name of the financial institution shall be identical to the name under which the license was issued.
4-4 The licensed financial institution shall state in its correspondence and other documents (such as contracts and agreements) the following information:
a. The name, type, head office and commercial register number of the financial institution.
b. The licensor and license number.
c. It is subject to the supervision and control of SAMA.
d. National address.
4.5 If it is not possible to disclose all the data required in the advertisements, it is sufficient to disclose that the financial institution is subject to SAMA supervision and control.
4.6 Banking transactions with commercial papers shall be excluded from these instructions.
5. Proposed Disclosure Format
5.1 Disclosure in the footnotes of the book, e-mail, and website with the following data as a minimum:
Name of financial institution: ...................., entity type: ................., capital contribution: .................., Commercial Register No.: ..................... , P.O. Box: ...................., Tel: ...................., national address: ...................., website: .................., licensed under license number: ............, subject to the control and supervision of SAMA.
5.2 For branches of local banks operating abroad:
Name of the financial institution................, a branch of a Saudi financial institution, subject to the control and supervision of...................
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