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.
Saudi Central Bank
Reference No.: 472038007 Date: 1447/07/02 Attachments: None
Circular
To the Esteemed, Peace be upon you, and God's mercy and blessings.
Subject: Not Requesting Promissory Notes from Individual Consumers when Offering Credit Card Financing Products.
In light of the Saudi Central Bank's supervisory and regulatory role, and based on the authorities granted to it under the Saudi Central Bank System (Royal Decree No. M/36 dated 1442/04/11 AH), the Banking Control System (Royal Decree No. M/5 dated 1386/02/22 AH), and the Financial Companies Control System (Royal Decree No. M/51 dated 1433/08/13 AH), and with reference to the Financial Institutions' Instructions on Handling Promissory Notes issued under Circular No. 43076917 (dated 1443/09/04 AH), and considering the recent prevalence of obtaining promissory notes from individual consumers when offering credit card financing products.
Therefore, without prejudice to the obligations and responsibilities of financial institutions stipulated in relevant systems and regulations, including the Principles for Responsible Individual Financing; financial institutions must cease requesting promissory notes or any commercial paper from individual consumers when offering credit card financing products, and must update their internal policies and procedures accordingly.
For information and implementation effective from 1 February 2026 AD, financial institutions are required to submit a corrective action plan to the Saudi Central Bank (Customer Protection Supervision Department) within 30 days of this date. The plan must include, at a minimum, the reissue or cancellation of previously obtained promissory notes or commercial paper from individual consumers that are non-compliant with this Circular, with implementation not exceeding 6 months from the date of this Circular.
Yours sincerely,
Abdullah bin Saleh Al-Humaid Acting Deputy Governor for Financial Behavior
Distribution Scope:
- Banks operating in the Kingdom.
- Financial companies operating in the Kingdom.