Article Two: Definitions
| No: 42071901 | Date(g): 26/5/2021 | Date(h): 15/10/1442 | Status: In-Force |
Effective from Jan 01 2022 - Dec 31 2021
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| A. | The terms and expressions mentioned in these instructions shall have the meanings assigned to them in the Finance Companies Control Law and its implementing regulations |
| B. | For the purposes of applying these instructions, the following terms and expressions - wherever they appear in these instructions - shall have the meanings specified next to each of them, unless the context requires otherwise: |
Central Bank: The Saudi Central Bank.
Instructions: The Shariah Governance Instructions for Finance Companies.
Board: The Board of Directors of the finance company
Committee: A specialized Shariah committee responsible for supervising the compliance with Shariah principles and their applications in the financing activities conducted by the finance company.
Committee Members: A group of specialists whose academic backgrounds are not limited to Shariah knowledge but also include an understanding and expertise in contemporary financial transactions that are employed in the form of Shariah rulings directed to the finance company.
Independent Committee Member: A person who enjoys complete independence in their position and decisions, is able to carry out their duties, express opinions, and vote on Shariah decisions objectively and impartially, and is not subject to any conflicts of interest as specified in these instructions.
Shariah Compliance Supervision: Monitoring and ensuring that the financing activities of the finance company comply with Islamic Shariah principles.
Other words or expressions mentioned in these instructions carry the meanings specified in the Finance Companies Control Law, its implementing regulations, and related instructions.