Regulatory Alerts2019-12-15
SAMA Rules on Outsourcing
The Saudi Arabian Monetary Authority (SAMA) issued the First Update to its Rules on Outsourcing, aligning regulatory requirements with international best practices. The updated framework mandates that all licensed banks in Saudi Arabia amend their internal outsourcing policies within 90 days and update existing contracts to comply with the new standards within 180 days. The rules establish comprehensive governance, risk assessment, and contractual obligations for material and non-material outsourcing, including mandatory SAMA approval for material third-party arrangements, strict data confidentiality, audit access, and business continuity planning.
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