Regulatory Alerts2021-11-09
Promoting Use of Legal Entity Identifier and Facilitating Obtaining it Through Financial Institutions
The Saudi Central Bank (SAMA) issued a circular mandating all supervised financial institutions and foreign branches in the Kingdom to maintain valid Legal Entity Identifiers (LEIs) for their business clients. The directive authorizes these institutions to execute a standardized agreement with SIMAH, SAMA's approved local operator, to streamline LEI issuance, updates, and renewals through a shared electronic gateway. Financial institutions must integrate LEI verification into their pre-credit approval policies, ensure continuous validity throughout client relationships, and manage associated fees while aligning with national risk management and G20 transparency obligations.
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