Regulatory Alerts2022-10-20
Creation and Regulation of the Statutory Reserve for Money Changers
The Saudi Central Bank issued this circular to establish and regulate a statutory reserve for money exchange centers operating in the Kingdom. The directive mandates that these centers allocate at least 10% of their annual net profits (after covering accumulated losses) to the reserve, with allocation permissible to cease once the reserve reaches 30% of paid-up capital. Furthermore, centers must obtain written no-objection from the Bank before utilizing the reserve, without compromising their existing cash reserve obligations under current regulations.
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