Amendment of Article 35 in the Finance Companies Control Law

Saudi Central Bank (SAMA)

Reference No.: 43029610
Date: 1443/04/04 (H)
Attachments: None

Circular

To Whom It May Concern,

Subject: Amendment of Paragraph (7) of Article (Thirty-Five) of the Finance Companies Control Law, and addition of two paragraphs numbered (3) and (4) to that Article.

Reference is made to the Royal Decree No. (51/M) dated 13/8/1433H, which issued the Finance Companies Control Law.

We hereby inform you of the issuance of Royal Decree No. (24/M) dated 15/3/1437H, amending Paragraph (7) of Article (Thirty-Five) of the Finance Companies Control Law issued by the aforementioned Royal Decree, and adding two paragraphs numbered (3) and (4) to that Article, as follows:

• 2. Whoever violates any of the provisions of this Law shall be punished, according to the gravity of the violation, by a fine not exceeding (2,000,000) two million Saudi Riyals or a percentage of (10%) of the financing amount practiced by the violator, whichever is higher, and/or imprisonment for a period not exceeding two years, or one of these two penalties, without prejudice to the provisions of Article (Thirty-Four) of this Law, and the amounts of such fines shall be deposited into the State's General Treasury.
• 3. The Saudi Central Bank may be compelled to impose a precautionary seizure on seized funds if strong evidence exists that the violator breached the provision of Paragraph (1) or (2) of Article (Four) of this Law, up to the maximum limit of the fine or percentage mentioned in Paragraph (7) of this Article, until the competent court reviews and rules on the violation according to the governing procedures.
• 4. The judgment issued with the penalty may include a provision for publishing its summary at the expense of the violator in one of the local newspapers or through another suitable medium.

For your information.

Yours sincerely,

Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision

Distribution Scope:

• Banks and institutions operating in the Kingdom.
• Finance companies operating in the Kingdom.

P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000