Regulatory Alerts2023-11-08
Emphasis on Compliance with Regulations for Advertising Products and Services Offered by Financial Institutions
The Saudi Central Bank mandates that all financial institutions fully comply with advertising regulations by obtaining customers' written or electronic consent and granting them a permanent, easy right to opt out of marketing communications through their preferred channels. The directive requires banks to review existing procedures for direct and third-party service delivery, ensuring all marketing campaigns operate in the customers' best interests. Relevant internal policies must be promptly updated to align with these regulatory requirements and maintain high professional standards in customer communications.
E2311090802 1445/4/25 AH
To the Esteemed,
Peace, mercy of Allah and His blessings be upon you.
Subject: Emphasis on Compliance with Regulations for Advertising Products and Services Offered by Financial Institutions
In the Saudi Central Bank's role in protecting customers of financial institutions under relevant instructions, and following Circular No. 44064343 dated 1444/08/13 AH regarding the regulations for advertising products and services offered by financial institutions, and noting past observations of customer objections to marketing campaigns by some banks regarding the products and services offered by them,
Therefore, the Saudi Central Bank emphasizes that all banks must fully comply with its instructions in this regard and operate in a highly professional manner, consistently acting in the best interests of customers throughout their relationship with the bank. This is particularly in line with Article 11 of the regulations for advertising products and services offered by financial institutions, which stipulates: "Financial institutions must obtain the customer's written or electronic consent regarding their preference to receive advertisements, and grant customers the permanent right to opt out of receiving such advertisements through channels preferred by the customer, in an easy and clear manner." Current procedures must be reviewed (whether the service is provided directly by the bank or through a third party), and relevant policies must be updated to align with the Saudi Central Bank's instructions.
Accept our regards,