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Article Five Bank Obligations

Effective from Apr 20 2025 - Apr 19 2025
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1.The Bank shall be fully responsible for the Authorised Employees’ practice of Banc assurance Activities. In order to ensure that the activities are carried out in line with SAMA's instructions and principles of transparency, the Bank shall:
1.1Ensure compliance with the terms of the Agreement and the procedures contained therein in all marketing and distribution channels of the Bank, and set the appropriate internal controls and procedures to ensure compliance with the relevant laws, regulations and rules;
1.2Maintain adequate records demonstrating the Bank's compliance with the provision (1.1);
1.3Prepare compliance reports regarding the Banc assurance Activities as agreed with the Company;
1.4Ensure compliance with the limits of insurance policies permitted to be marketed and distributed in accordance with the Agreement;
1.5Maintain the confidentiality of data, records and information of the Company and its Clients; and
1.6Allow the Company to view, review all Bank books and records related to Banc assurance Activities or obtain copies of them, and prepare the following records:
  1-Communications record;
  2-Internal records; and
  3-Clients’ complaints record.
2.The Bank shall establish a Banc assurance unit to oversee the Banc assurance activities, and the Bank’s code of governance shall determine its operation procedures and shall include, at a minimum, the following responsibilities:
  A.Supervision of the Bank's electronic and non-electronic marketing and distribution channels.
  B.Holding training courses for Authorised Employees.
  C.Establish procedures to control and verify that the marketing and distribution of insurance products are carried out in an honest, transparent and fair manner.
3.The Banc assurance unit shall be under the management of an employee with sufficient experience who will be employed by the Bank to fill the position of director of the Banc assurance department, after obtaining SAMA’s non-objection.
4.Banc assurance Activities shall be practiced through the Bank’s marketing and distribution channels electronic and non electronic.
5.The Bank shall ensure that all Authorised Employees have the Insurance Foundations Professional Exam certificate (IFCE) and any other certificate specified by SAMA.
6.The Bank must obtain the Company’s approval to expand the marketing and distribution channels, electronic and non electronic; through which Banc assurance Activities are practiced, along with notifying SAMA's of such.
7.The Bank must not conduct Banc assurance Activities with other than his Clients.