Regulatory Alerts2025-12-22
Not Requesting Promissory Notes from Individual Consumers when Offering Credit Card Financing Products
The Saudi Central Bank issued Circular No. 472038007 requiring all banks and financial companies operating in the Kingdom to cease requesting promissory notes or commercial paper from individual consumers when offering credit card financing products. Financial institutions must update their internal policies and submit a corrective action plan to the Customer Protection Supervision Department within 30 days, detailing the reissue or cancellation of non-compliant notes previously collected from consumers. The directive takes effect on 1 February 2026, with full implementation of the corrective plan required within six months.
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