In reference to the powers vested to the Central Bank for supervising and monitoring financial institutions based on the provisions of its Law issued by Royal Decree No. (M/36) dated 11/04/1442 H, and based on the provisions of relevant laws and regulations, and in reference to Circular issued by the Central Bank No. (67/19636) dated 23/3/1441 H, which stipulates that all financial institutions and their affiliated establishments, as well as branches of foreign financial institutions operating in the Kingdom under the supervision of the central bank, must obtain a Legal Entity Identifier.

In an effort by the central bank to support the establishment of a unified system that serves the Kingdom in implementing best practices for risk management and financial stability and enhancing transparency in financial markets, in line with the objectives Vision 2030 of the Kingdom, And in a manner that contributes to the fulfillment of the Kingdom’s international commitments arising from its membership in the G20, and enhancing the Kingdom’s international standing, and from the standpoint of facilitating the implementation of services for issuing and renewing the Legal Entity Identifier (LEI) to enable financial sector institutions to systematically and effectively identify and assess potential risks, contributing to the stability and efficiency of the financial sector, it has been decided as follows:

1. The Legal Entity Identifier must be valid and up to date for financial institutions under the supervision of the Central Bank, establishments affiliated with financial institutions, and branches of foreign financial institutions operating in the Kingdom, as referred to in Circular of the Central Bank No. (67/19636) dated 23/03/1441 H.
2. Allowing financial institutions to sign an agreement "Issuing, updating, and renewing a Legal Entity Identifier through a financial institution" with the Saudi Credit Bureau "SIMAH" as the certified local operator for the Legal Entity Identifier (Local Operating Unit); enabling financial institutions themselves to issue, update, and renew Legal Entity Identifiers on behalf of their business sector customers (current and/or potential) in accordance with the terms of the agreement approved by the central bank.

The central bank urges financial institutions – as appropriate – to ensure that their policies and procedures include the requirement for a Legal Entity Identifier (LEI) for all business sector customers before granting credit. Additionally, it should be valid and updated throughout the duration of the relationship and obtaining it should serve as a supportive tool for identifying the customer and the risks associated with their transactions.

For your information and action starting from this date. In case of any inquiries in this regard, you can contact the Central Bank: (SLEI@SAMA.GOV.SA)