Regulatory Alerts2017-09-18
Annual Branch Expansion Plan (ABEP)
The Saudi Central Bank (SAMA) requires commercial banks to implement an Annual Branch Expansion Plan (ABEP) that standardizes the licensing, setup, and reporting of new branch locations. Banks must obtain internal audit compliance confirmations, submit all license applications by December 31 of the approval year, and ensure each licensed branch becomes operational within six months. SAMA will expedite the review process while enforcing strict compliance through supervisory oversight and mandating written operational notifications within fourteen days of commencement.
/ ._ Ba11ki11g Supervision Dept. g. a statement from the internal audit department of the bank confirming that the new branch comply with all relevant requirements of the government authorities and SAMA. 1v. Banks will be required to finalize necessary arrangements and apply for licenses for opening of all branches approved under ABEP, latest by 31st December of the calendar year for which the ABEP is approved. In case the arrangements for opening of any approved branches have not been finalized within the stipulated timeline, banks can approach SAMA along-with valid reasoning for extension in the timeline; v. The process of evaluating branch license applications will be simplified and streamlined within SAMA with the implementation of ABEP, and the license will be issued expeditiously provided all relevant approvals and information as required under Para 5(iii) above are provided by banks along with the application; vi. Once a formal license is issued by SAMA for opening a branch, the bank will take all necessary measures to make the branch operational within six months of the date of issuance of the license; vu. Banks shall inform SAMA in writing within 14 days of commencement of operations by a new branch. 6) Banks are required to ensure compliance of the requirements under this circular. SAMA will monitor compliance through its supervisory processes and may take appropriate measures as needed to encourage banks to comply with these requirements. Abdulaziz A. 1-Helaissi Deputy Governor for Supervision Pages ofS P. 0. Box 2992- Riyadh 11169, Saudi Arabia-Tel.: 01-463 3000-Telex 404390 SJ - Fax 01-466 2119