Regulatory Alerts2021-11-09
Amendment of Article 35 in the Finance Companies Control Law
Saudi Central Bank (SAMA) issued a circular amending Paragraph 7 and adding Paragraphs 3 and 4 to Article 35 of the Finance Companies Control Law, establishing maximum fines of SAR 2 million or 10% of financing, imprisonment up to two years, and authorization for precautionary fund seizures pending court rulings. The amended provisions require penalty judgments to include publication of their summaries in local media at the violator’s expense and apply without prejudice to Article 34. This circular applies to all banks, financial institutions, and finance companies operating within the Kingdom of Saudi Arabia.
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