Regulatory Alerts2023-01-30
Assigning debt collection operations of banks, financial institutions, and finance companies to debt collection entities licensed by the Central Bank
The Saudi Central Bank (SAMA) has issued a circular restricting the delegation of debt collection operations by banks, financial institutions, and finance companies exclusively to licensed debt collection entities. This directive, effective July 1, 2024, mandates that all debt collection activities previously outsourced to unlicensed parties must now be assigned to SAMA-licensed entities, as verified on the Bank's official website. The measure aims to ensure sector stability and protect market participants by standardizing regulatory oversight over debt collection operations.
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