Regulatory Alerts2020-09-16
Principles of Compliance for Banks and Commercial Banks Operating in the Kingdom of Saudi Arabia
The Saudi Arabian Monetary Authority (SAMA) issued the Principles of Compliance to replace its 2008 Compliance Guide and strengthen the supervisory and regulatory framework for banking institutions in the Kingdom. The document mandates that banks implement these principles on a guidance basis through the end of 2020, with full compliance becoming compulsory starting January 1, 2021. It establishes standardized operational and governance requirements designed to enhance sound banking practices, address regulatory gaps, and ensure consistent risk management across all commercial banks operating within Saudi Arabia.
==Start of PDF== ==Screenshot for page 1== In the Name of Allah, the Most Gracious, the Most Merciful Saudi Arabian Monetary Authority Banking Policies Department Head Office Ref: 42005223 Date: 28/01/1442 AH Enclosures: (26) rolls Circular
Dear Sirs, Peace, mercy, and blessings of God be upon you, Subject: Principles of Compliance for Banks and Commercial Banks Operating in the Kingdom of Saudi Arabia.
Based on the powers vested in the Authority under its system issued by Royal Decree No. (23) dated 23/05/1377 AH, and the Banking Control System issued by Royal Decree No. (M/5) dated 22/02/1386 AH. And referring to the Compliance Guide for Banks Operating in the Kingdom of Saudi Arabia issued in the year (1429 AH / 2008 AD), and in light of the supervisory and regulatory role of the Saudi Arabian Monetary Authority, and its efforts aimed at continuously improving and addressing banking regulatory matters and enhancing sound practices in banking institutions.
Attached herewith are the Principles of Compliance for Banks and Commercial Banks Operating in the Kingdom of Saudi Arabia, which aim to activate regulatory roles and enhance sound practices in banking institutions, to replace the aforementioned Guide.
For information, and to be implemented on a guidance basis until the end of 2020, and mandatory as of 01/01/2021.
Yours sincerely, Fahd bin Ibrahim Al-Shathry Deputy Governor for Supervision
Distribution Scope
- Banks and commercial banks operating in the Kingdom.
P.O. Box 2992, Riyadh 11169, Telegram Address: MARKAZI, Telex: 404400, Tel: 4632000, Fax: 4662414
==Screenshot for page 2== Principles of Compliance For Banks and Commercial Banks Operating in the Kingdom of Saudi Arabia
September 2020
Saudi Arabian Monetary Authority Saudi Arabian Monetary Authority
==Screenshot for page 3== Table of Contents Definitions 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