Regulatory Alerts2018-02-19
The Spread of Advertisements for Lending and Debt Repayment from Unlicensed Parties
The Saudi Arabian Monetary Authority (SAMA) mandates licensed financial institutions to intensively monitor, review, and report on early debt repayment operations linked to unlicensed entities, ensuring compliance with the Banking Control Law and Financial Companies Control Law. Institutions must remove related ATM stickers on a semi-monthly basis, conduct at least semi-annual internal reviews of these transactions, and submit quarterly violation reports to SAMA for field verification. This directive aims to mitigate negative economic impacts by curbing suspicious financial advertisements and strengthening oversight of unlicensed debt repayment activities.
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