Regulatory Alerts2024-06-27
Amendment of the Finance Companies Control Law
The Saudi Central Bank issued Circular No. 45076651 to implement Royal Decree M/272, amending multiple articles of the Finance Companies Control Law. The amendments redefine finance companies, expand permissible activities and governance structures, mandate audit committees, enforce disclosure requirements for financing contracts, and grant the Bank enhanced supervisory powers to issue warnings, impose fines, suspend operations or licenses, and appoint managers. These changes collectively strengthen financial system stability, ensure fair transactions, and clarify the liability and oversight mechanisms for finance companies and their supporting establishments.
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