The Saudi Central Bank (SAMA) has unveiled the updated Implementing Regulation of the Finance Companies Control Law, reinforcing its supervisory and regulatory role within the finance sector.
This move underscores SAMA’s ongoing commitment to ensuring the stability and growth of the industry, thereby further supporting its development in line with national economic objectives.
SAMA’s key updates to finance sector regulations
The updates aim to enhance the regulation of financing activities by introducing several key changes. These include increasing the maximum aggregate finance amount that a finance company can offer, revising the bank guarantee requirements for companies applying for a license to ensure stronger financial security, and updating provisions related to transactions with related parties to ensure transparency and fairness.
Additionally, the updates establish clearer procedures for managing the expiration of licenses issued to finance companies, ensuring that the process is handled efficiently and in compliance with regulations.
The updates repeal the Rules Regulating Consumer Microfinance Companies and the Rules of Engaging in Microfinance Activity, and they amend the Rules of Licensing Finance Support Activities. These changes aim to streamline and update the framework for financial companies, ensuring better compliance and clarity in their operations.
SAMA previously published the updated draft of the Implementing Regulation of the Finance Companies Control Law, seeking comments and feedback from the public and experts. The comments and feedback received were carefully reviewed and reflected in the final version.
The updated Implementing Regulation of Finance Companies’ Control Law and the revised Rules of Licensing Finance Support Activities will be available on SAMA’s official website, as per the statement.
