The Saudi Central Bank (SAMA) has announced the adoption of the executive regulations of the updated Finance Companies Regulation, based on its supervisory and regulatory role in the finance sector and its continuous efforts to support the stability and growth of the sector.
The update includes regulating the requirements for conducting all financing activities, adjusting the total amount of financing that a company can provide, as well as supporting companies applying for a license by adjusting the amount of bank guarantee required when applying for a license. The update included regulating the requirements for conducting all financing activities, modifying the total amount of funding that a company can provide, as well as supporting companies applying for a license by modifying the amount of bank guarantee required to be provided when applying for a license.
The update included revising the provisions related to related parties and clarifying the cases of expiration of the license of finance companies.
With the issuance of the executive regulations of the updated Finance Companies Regulation, the rules for regulating consumer microfinance companies and the rules for practicing microfinance activity are repealed, in addition to amending the licensing rules for activities supporting the financing activity.
This update includes revising the provisions related to related parties, and clarifying the cases of expiration of the license of finance companies. The adoption of these updates comes after the Saudi Central Bank (SCB) previously released a draft update of the executive regulations of the Finance Companies Control Law to solicit public and specialized feedback, and the feedback was studied and taken into consideration in the final version of the project.
The draft regulation can be viewed here. The updated Executive Regulations of the Financing Companies Monitoring System and the updated rules for licensing activities supporting the financing activity can be viewed by visiting SAMA's website.
SAMA's website.
