Regulatory Alerts2018-05-24
Ensuring Prompt Responses to Judicial Authorities and their Requests
The Saudi Arabian Monetary Authority mandates all supervised financial entities to promptly respond to judicial authorities, reply to legal requests within statutory deadlines, and execute court rulings without delay or procrastination. This directive addresses observed non-compliance that prolongs litigation, burdens judicial systems, and harms the financial sector's reputation. Entities and employees failing to adhere to these requirements will face statutory penalties and regulatory enforcement actions.
In the name of Allah, the Most Gracious, the Most Merciful Saudi Arabian Monetary Authority Head Office
Office Deputy Governor for Supervision
Ref. No.: ........................................ Date: 09/09/1439 AH Attachments: None
Ref. No.: 41/2307 Date: 09/09/1439 AH Attachments: None
Circular
Dear Sirs,
Peace, mercy, and blessings of God be upon you,
Subject: Prompt Response to Judicial Authorities and Reply to Their Requests.
In continuation of the Authority's Circular No. 351000036574 dated 20/03/1435 AH regarding the obligation of supervised entities to promptly execute judicial rulings and decisions without delay or procrastination.
And in light of observing that some entities fail to respond to judicial authorities and reply to their requests within the statutory deadlines specified in lawsuits in which they are a party, which leads to prolonging litigation, delaying the review and adjudication of cases, and burdening judicial authorities. And due to the negative repercussions on the reputation of the financial sector and harm to interests and rights, and to prevent the imposition of statutory penalties on (establishments and employees) that may be taken due to non-response to judicial authorities.
The Saudi Arabian Monetary Authority emphasizes to all supervised entities the need for prompt response to judicial authorities in lawsuits filed before them, compliance with replying to their requests within the specified statutory deadlines, and compliance with receiving judicial rulings and decisions and working to execute them as soon as possible. The Authority will take the necessary statutory measures in case of delay or procrastination in this regard.
Yours sincerely,
Ahmed bin Abdullah Al-Sheikh Deputy Governor for Supervision
On behalf of: Fahd bin Ibrahim Al-Shathri Deputy Governor for Research and International Affairs
Distribution Scope:
- Banks and financial institutions operating in the Kingdom.
- Financing companies.
- Foreign exchange dealers.
- Credit reporting agencies.
P.O. Box 2992, Riyadh 11169, Tel: 4662300 - Fax: 4662543