Regulatory Alerts2017-10-08
SAMA New Banking Products and Services Guideline
The Saudi Arabian Monetary Authority (SAMA) issued this guideline to establish a comprehensive regulatory framework for the introduction, approval, and oversight of new banking products and services by licensed banks. The document requires financial institutions to implement robust risk management, consumer protection, and Shariah compliance mechanisms while ensuring transparent reporting and governance structures. It standardizes the licensing process for innovative financial offerings to mitigate unforeseen operational risks and maintain market stability.
Saudi Arabian Monetary Authority
SAMA New Banking Products and Services Guideline
1. INTRODUCTION
Purpose and Scope
Banks occasionally introduce new products or services in the course of their business. These same innovations, however, could cause unforeseen and undesirable results. Licensed banks must ensure that new products and services comply with applicable regulations, guidelines, and Shariah principles where relevant. This guideline outlines the requirements for licensing, risk management, consumer protection, and reporting for new banking products and services.