Regulatory Alerts2020-09-15
Circular Re. Principles of compliance for banks and commercial banks operating in the Kingdom of Saudi Arabia
The Saudi Arabian Monetary Authority issued the 'Principles of Compliance for Banks and Commercial Banks Operating in the Kingdom of Saudi Arabia' to replace the 2008 Compliance Guide and enhance supervisory roles and sound banking practices. These principles became mandatory for all banks operating in the Kingdom effective January 1, 2021, following a transitional period where they were applied on a best-effort basis until the end of 2020. The document outlines the regulatory framework intended to address supervisory issues and promote robust compliance cultures within the Saudi banking sector.
Circular Re. Principles of compliance for banks and commercial banks operating in the Kingdom of Saudi Arabia
Saudi Arabian Monetary Authority Banking Policies Department Headquarters
Ref: 42005223 Date: 28/01/1442 AH Attachments: (26) Rolls
Circular
To: Distinguished Gentlemen,
Peace, mercy, and blessings of God be upon you,
Subject: Principles of Compliance for Banks and Commercial Banks Operating in the Kingdom of Saudi Arabia.
Based on the authorities vested in the Authority under its system issued by Royal Decree No. (23) dated 23/5/1377 AH, and the Banking Control System issued by Royal Decree No. (M/5) dated 22/2/1386 AH. With reference to the Compliance Guide for Systems for Banks Operating in the Kingdom of Saudi Arabia issued in the year (1429 AH / 2008 AD), and proceeding from the supervisory and regulatory role of the Saudi Arabian Monetary Authority, and its efforts aimed at continuing to improve and address banking supervisory issues and enhance sound practices in banking institutions.
Attached herewith are the Principles of Compliance for Banks and Commercial Banks Operating in the Kingdom of Saudi Arabia, which aim to activate supervisory roles and enhance sound practices in banking institutions, to replace the aforementioned Guide.
For your information and guidance on a best-effort basis until the end of the year 2020 AD, and mandatory as of 01/01/2021 AD.
Accept my regards,
Fahd bin Ibrahim Al-Shathri Deputy Governor for Supervision
Distribution Scope:
- Banks and commercial banks operating in the Kingdom.
P.O. Box 2992, Riyadh 11169, Telegram Address: Markazi, Fax: 404400, Tel: 4632000, Fax: 4662414
Principles of Compliance
For Banks and Commercial Banks Operating in the Kingdom of Saudi Arabia
September 2020 AD
Saudi Arabian Monetary Authority Saudi Arabian Monetary Authority
Table of Contents
Definitions 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