Regulatory Alerts2023-07-09
Assignment of Debt Collection Operations for Banks and Finance Companies from Clients Outside the Kingdom
The Saudi Central Bank clarifies that its Circular No. 44055679 exclusively governs the assignment of debt collection operations for clients located within the Kingdom, explicitly excluding those situated outside the Kingdom. This clarification addresses financing entities' inquiries by confirming that cross-border debt collection remains permissible under existing systems, particularly the financing entities’ assignment instructions and data protection regulations. Consequently, licensed debt collection agencies must align their domestic operations with the circular’s scope while maintaining compliance with applicable regulatory frameworks.
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