Regulatory Alerts2020-10-14
Adherence to the standard form of the financing lease contract for vehicles for individuals
The Saudi Central Bank’s Finance Companies Supervision Department mandates licensed finance companies to adhere to the standard financing lease contract form for individual vehicle purchases. This regulatory requirement, initially effective from April 23 to August 30, 2020, has been progressively extended due to COVID-19 impacts until July 21, 2020. The standardized form applies universally to all individual vehicle financing lease agreements executed by licensed entities during the compliance period.
From: Finance Companies Supervision Department fcsdepartment@SAMA.GOV.SA Sent: Thursday, June 4, 2020 3:56 PM Subject: Adherence to the standard form of the financing lease contract for vehicles for individuals
Date: 1441/01/06 AH / April 23, 2020 AD To: All licensed finance companies
Subject: Adherence to the standard form of the financing lease contract for vehicles for individuals
The Saudi Central Bank (SAMA) refers to the adherence to the standard form of the financing lease contract for vehicles for individuals, which was effective from 1441/01/06 AH (April 23, 2020 AD) until 1441/08/30 AH (August 30, 2020 AD). The adherence period was subsequently extended until 1441/10/3 AH (May 26, 2020 AD). Following the impact of the COVID-19 pandemic on the financing sector, SAMA has decided to extend the adherence period for the standard form until 1441/10/8 AH (May 31, 2020 AD). It is worth noting that the standard form covers all financing lease contracts for vehicles for individuals. The adherence period has been further extended until 1441/11/30 AH (July 21, 2020 AD).
Finance Companies Supervision Department - Offsite Division