Regulatory Alerts2021-11-18
Circular Re. The Update of the Guidelines on Standing Orders for Real Estate Financiers
The Saudi Central Bank issued an updated circular replacing previous guidelines to expand standing order services to all financing products and include national development fund entities. The regulations mandate strict bank obligations, including verifying stable income and obtaining client declarations, while requiring financiers to provide discharge letters within seven days upon request. These measures aim to protect consumers, ensure responsible financing, and reduce default risks by standardizing communication and execution protocols.
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