Regulatory Alerts2024-09-04
Assignment of Debt Collection Operations for Banks and Finance Companies to Debt Collection Entities Licensed by SAMA
The Saudi Central Bank (SAMA) has extended the grace period for banks, finance companies, and licensed debt collection entities to finalize their operational partnerships until December 2024 or the issuance of further directives, whichever occurs first. This extension applies to entities that have already secured SAMA's initial approval and aligns with the regulator's ongoing review of licensing and direct supervision frameworks for debt collection activities. Affected institutions are directed to verify their approved status on SAMA's official website and ensure strict compliance with the updated operational timelines.
Number: 46014147
Date: 1446/03/01 (Hijri)
Attachments: None
Circular
To the Respected, Gentlemen/
Peace be upon you, mercy of Allah and His blessings,
Subject: Assignment of debt collection operations for finance companies to debt collection entities licensed by the Saudi Central Bank.
With reference to Circular No. (45,7726) dated 1445/12/26 Hijri, which refers to Circular No. (44,55679) dated 1444/07/08 Hijri, regarding the restriction of debt collection operations for banks and finance companies to debt collection entities licensed by SAMA, and it has been decided to extend the grace period for banks, finance companies, and debt collection entities licensed by SAMA that have obtained initial approval to attempt the debt collection activity until the end of September 2024.
Given that SAMA is currently reviewing the regulations governing the debt collection activity, including licensing and direct supervision thereof; it has been decided to extend the grace period for banks, finance companies, and debt collection entities licensed by SAMA that have obtained initial approval to attempt the debt collection activity until the end of December 2024, or the issuance of other circulars by SAMA, whichever is earlier. The list of entities that have obtained initial approval to attempt the activity can be found on SAMA's official website.
For your information and compliance.
Yours faithfully,
Yazeed bin Ahmed Al Sheikh
Deputy Governor for Supervision
Distribution Scope:
- Banks operating in the Kingdom.
- Finance companies operating in the Kingdom.
- Debt collection entities licensed by SAMA.
- Debt collection entities that have obtained initial approval to attempt the debt collection activity.
P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000