Regulatory Alerts2019-06-12
Rules Governing Disposal of Finance Assets or Their Contractual Rights
SAMA has issued an updated version of the Rules Governing Disposal of Finance Assets or Their Contractual Rights to standardize sector-wide asset liquidation and rights management procedures. The circular mandates all regulated financial institutions to immediately review and comply with the revised provisions effective upon its publication date. Issued under the Banking Control Law and Finance Companies Control Law, the framework replaces prior guidelines to ensure consistent regulatory oversight of finance asset disposals.
Based on the powers vested in SAMA under the relevant laws, regulations and instructions, and the powers vested in SAMA under the Banking Control Law issued by Royal Decree No. (M/5) dated 22/02/1386 H , and the Finance Companies Control Law issued by Royal Decree No. (M/51) dated 13/08/1433H , and Article Sixty-Seven of the Implementing Regulations of the Finance Companies Control Law , and SAMA Circular No. (361000145658) dated 18/11/1436 H containing Rules Governing Disposal of Finance Assets or Their Contractual Rights. Please find attached the updated version of the "Rules Governing Disposal of Finance Assets and their Contractual Rights". To take note and abide by it as of its date.
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