Regulatory Alerts2021-06-10
Aggregate Accounts to manage the finance amount for engaging in debt-based crowdfunding
The Central Bank of Saudi Arabia mandates debt-based crowdfunding entities to establish dedicated aggregate accounts exclusively for managing financing amounts, requiring strict segregation from the entities' own funds. The directive obligates these entities to implement written management policies, board-approved authorization matrices, semi-monthly senior reporting, and documented reconciliation processes while notifying the Central Bank of all account openings or closures. Additionally, it requires bank agreements to explicitly reflect regulatory requirements and clearly delineate the respective operational responsibilities of both the banks and the crowdfunding entities.
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