Regulatory Alerts2022-09-25
Emphasis on Finance Entities to Adhere to SAMA's Collection Regulations and Procedures for Individual Customers when Outsourcing Debt Collection Tasks to External Service Providers
Saudi Central Bank issued a circular requiring finance entities to verify that external service providers comply with SAMA’s collection regulations and procedures for individual customers when debt collection tasks are outsourced. These entities must ensure that external providers implement necessary measures to guarantee ongoing adherence to these rules, and SAMA will enforce regulatory actions against violators. The directive applies to all banks and finance companies operating in the Kingdom, reinforcing accountability across outsourced debt collection operations.
Saudi Central Bank
Reference No.: 4401645 Date: 29-02-1444 Attachments: None
Circular
To Whom It May Concern, Peace, mercy, and blessings of God be upon you,
Subject: Emphasis on Finance Entities to Adhere to SAMA's Collection Regulations and Procedures for Individual Customers when Outsourcing Debt Collection Tasks to External Service Providers.
Based on the authorities granted to Saudi Central Bank under relevant systems, regulations, and instructions, and in accordance with the provisions stipulated in SAMA's Collection Regulations and Procedures for Individual Customers, and given the negative practices observed in this regard;
Saudi Central Bank wishes to emphasize that it is the responsibility of Finance Entities to verify that external service providers comply with SAMA's Collection Regulations and Procedures for Individual Customers when debt collection tasks are outsourced, and to ensure that external service providers implement necessary measures to guarantee compliance with these regulations and procedures. Saudi Central Bank will take regulatory actions against violators of these regulations and procedures.
For information and appropriate action.
Yours sincerely,
Yazeed bin Ahmed Al-Sheikh Deputy Governor for Supervision
Distribution Scope:
- Banks operating in the Kingdom.
- Finance companies operating in the Kingdom.