Regulatory Alerts2025-12-23
Mechanism for Assigning Debt Collection Operations of Banks and Finance Companies to Finance Debt Collection Entities Licensed by SAMA
The Saudi Central Bank (SAMA) issued this circular to discontinue previous directives and establish a unified mechanism for assigning debt collection operations of banks and finance companies to licensed Finance Debt Collection Entities. The new framework mandates that assignments be made only to entities compliant with specified regulatory requirements and holding a SAMA No Objection Letter, while permitting contracts with unlicensed debt collection operators without compromising existing systems, rules, or customer protection standards. This directive applies to all banks, finance companies, and licensed debt collection entities operating within the Kingdom, effective immediately upon issuance.
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