Regulatory Alerts2024-07-02
Assignment of Debt Collection Operations for Banks and Finance Companies to Debt Collection Entities Licensed by SAMA
The Saudi Central Bank (SAMA) has extended the deadline for banks, financial institutions, and financing companies to contract with initially approved debt collection entities until the end of September 2024. This extension preserves the regulatory requirement to restrict debt collection outsourcing exclusively to SAMA-licensed or initially approved entities, as previously mandated in Circulars 40.55679 and 40.29.88. Affected institutions must verify their partners' approval status on SAMA's official website to ensure continued compliance with the updated operational framework.
Saudi Central Bank (SAMA)
Reference No.: 45077226
Date: 1445/12/26
Attachments: None
Circular
Dear Sir/Madam,
Peace be upon you, mercy of Allah and His blessings,
Subject: Assignment of debt collection operations for banks, financial institutions, and financing companies to debt collection entities licensed by the Saudi Central Bank.
Reference is made to Circular No. (40.55679) dated 08/07/1444H regarding the restriction of debt collection operations for banks, financial institutions, and financing companies to debt collection entities licensed by the Saudi Central Bank. Furthermore, in continuation of Circular No. (40.29.88) dated 01/05/1445H regarding the confirmation of compliance with the specified deadline for restricting debt collection operations for banks, financial institutions, and financing companies to debt collection entities licensed by the Saudi Central Bank.
In light of the supervisory and regulatory role of the Saudi Central Bank over banks, financial institutions, financing companies, and debt collection entities; the Saudi Central Bank wishes to inform that the deadline for banks, financial institutions, and financing companies to contract with debt collection entities holding initial approval from the Saudi Central Bank to undertake debt collection operations for financing institutions has been extended until the end of September 2024. The list of entities holding initial approval to undertake this activity can be found on the Saudi Central Bank's official website.
For your information and compliance.
Yours faithfully,
Yazeed bin Ahmed Al-Sheikh
Deputy Governor for Supervision
Distribution Scope:
- Banks and financial institutions operating in the Kingdom.
- Financing companies operating in the Kingdom.
- Debt collection entities licensed by the Saudi Central Bank.
- Debt collection entities holding initial approval to undertake debt collection operations for financing institutions.
P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000