Regulatory Alerts2018-04-17
Using SAMA’s Name When Dealing with Customers
The Saudi Arabian Monetary Authority (SAMA) has issued a circular prohibiting financial institutions from improperly invoking SAMA’s name when interacting with customers, particularly during request rejections or contrary actions. The directive mandates that any reliance on SAMA’s circulars or directives must be verified by knowledgeable specialists and accurately applied, ensuring customers are not misled into believing SAMA’s rules block services that remain available. Financial institutions must ensure all staff comply with these requirements, as SAMA will enforce appropriate regulatory measures against any institution whose employees violate this prohibition.
In the Name of Allah, the Most Gracious, the Most Merciful
Saudi Arabian Monetary Authority Headquarters
Office of the Deputy Governor for Supervision
Number: .................................... Date: 1439/08/01 Attachments: ....................................
Circular
Number: 391000084411 Date: 1439/08/01 Attachments: ....................................
Respected Sirs,
Peace, mercy, and blessings of God be upon you,
Subject: Using the name of the Saudi Arabian Monetary Authority when dealing with customers.
Based on the authorities granted to the Authority under its supervisory and regulatory powers, and considering the recent frequent use of the Saudi Arabian Monetary Authority’s name by employees of financial institutions under its supervision (whether in General/Regional Departments, Branches, or via Telephone), with the aim of convincing customers that the procedures taken by the financial institution are correct and based on directives issued by the Authority. The Authority has received several complaints stating that the Authority’s directives were the reason for not fulfilling the customer’s request from the financial institution, and upon review, it was found that there are no circulars or directives issued by the Authority prohibiting the financial institution from providing the service to the customer.
Accordingly, the Authority confirms for all financial institutions (Banks, Insurance Companies, and Financing Companies) not to use the Authority’s name when dealing with customers, whether in rejecting customer requests or taking any action contrary to the customer’s wishes. If relying on circulars or directives issued by the Authority, this must be done by specialists who have full knowledge and familiarity with the circulars and directives issued by the Authority, and the reliance must be correct. Furthermore, financial institutions are required to confirm that all employees adhere to this Circular. In case of any violation by the financial institution’s employees regarding this matter, the Authority will take appropriate action against the financial institution according to the powers granted to it under the relevant regulations.
Yours faithfully,
Ahmed bin Abdullah Al-Khalifi Deputy Governor for Supervision
Distribution Scope:
- Banks operating in the Kingdom.
- Insurance and Reinsurance Companies, and licensed professionals.
- Financing Companies.
- Foreign Exchange Practitioners.
- Credit Information Companies.
P.O. Box 2992, Riyadh 11169, Tel: 4662200 - Fax: 4662543