Regulatory Alerts2022-03-24
Deleting Article (4) of the Implementing Regulation of the Real Estate Finance Law, and amending Article (16) of the Implementing Regulation of the Finance Companies Control Law
The Saudi Central Bank (SAMA) and the Ministry of Finance have issued decisions to delete Article 4 of the Real Estate Finance Law’s Implementing Regulation and amend Article 16 of the Finance Companies Control Law’s Implementing Regulation. The amended Article 16 authorizes SAMA to specify licensed financing activities and impose special conditions on finance company licenses, including restrictions on geographical operating areas, eligible beneficiaries, or other regulatory criteria. These measures, effective from 1437H, streamline licensing frameworks and enhance SAMA’s supervisory authority over domestic finance companies and banks.
Saudi Central Bank (SAMA)
Registration No.: 43072290 Attachments: 21/08/1443
Circular
To: Market Participants
Peace, mercy, and blessings of God be upon you,
Subject: Deleting Article (4) of the Implementing Regulation of the Real Estate Finance Law, and amending Article (16) of the Implementing Regulation of the Finance Companies Control Law.
Based on the authorities granted to His Excellency the Minister of Finance under the Real Estate Finance Law issued by Royal Decree No. (M/5) dated 13/8/1433H, and to His Excellency the Governor of the Saudi Central Bank under the Finance Companies Control Law issued by Royal Decree No. (M/51) dated 13/8/1433H,
We inform you of the issuance of His Excellency the Minister of Finance's Decision No. (1144) dated 2/6/1437H, which includes the deletion of Article (4) of the Implementing Regulation of the Real Estate Finance Law.
We also inform you of the issuance of His Excellency the Governor's Decision No. 113/FC dated 10/8/1437H, amending Article (16) of the Implementing Regulation of the Finance Companies Control Law to read as follows: "The Central Bank shall specify in the license the financing activity or activities authorized for a finance company to conduct, and may restrict the license with special conditions specifying the geographical area in which the finance company is authorized to operate, or the beneficiaries it is authorized to deal with, or other such conditions."
Accept our regards, Fahd bin Ibrahim Al-Shahrani Deputy Governor for Supervision
Distribution Scope:
- Banks operating in the Kingdom.
- Finance companies operating in the Kingdom.
P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000 P.O. Box: 2992, Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000