Regulatory Alerts2019-06-12
The Mandatory Requirement of Using Qawaem Program Before Providing Credit Facilities to Commercial Entities
The Saudi Central Bank mandates all domestic banks and financial institutions to utilize the "Qawaem" program as the primary source for obtaining commercial entities' financial statements before extending credit facilities or conducting periodic credit risk assessments. Effective August 16, 2019, this requirement compels regulated entities to rely exclusively on verified statements deposited in the program, thereby strengthening accounting data quality and credit risk evaluation. The directive applies to all commercial entities legally obligated to deposit their financial statements, ensuring enhanced transparency and operational efficiency across the Kingdom's banking sector.
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