7- The Finance Company shall put in place policies and procedures to implement anti-fraud and risk management strategies. Such policies and procedures shall be updated regularly and tested in terms of effectiveness to keep abreast of developments in fraud. A copy of such policies and procedures shall also be provided to SAMA.

8- Policies shall be based on an analysis of fraud risks to which a Finance Company is exposed.

9- Policies and procedures shall include, at a minimum, the following:

a. the role of employees in the implementation of anti-fraud strategy, and identification of individuals responsible for its implementation;

b. standards for the detection and prevention of fraud;

c. a mechanism clarifying the procedures and communication methods for internal reporting of suspicious or actual cases of fraud, identifying the party responsible for investigating fraud cases inside the Company, and designating the available external reporting channels and the protection offered to whistleblowers;

d. a policy on retention of documents containing details of suspicious and actual cases of fraud; and

e. a mechanism for training the Company’s employees on a regular basis to raise awareness of fraud risks and prevention methods.

10- The Finance Company shall develop a mechanism to ensure the soundness of financed asset’s valuation carried out by the accredited valuer.

11- The Finance Company shall establish a mechanism to ensure the implementation of its credit policy on financing contracts.