Regulatory Alerts2021-06-10
Introduction of a Rule Entitled, “Collection Accounts for Managing the Finance Value of Debt-Based Crowdfunding Companies”
The Saudi Central Bank issued Circular No. 42075950 to introduce Rule 300-1-3-8, mandating dedicated collection accounts for debt-based crowdfunding companies to manage financing value and grant credit. The rule requires these accounts to operate independently from operational funds, bear specific naming conventions, restrict cash transactions, and require participant approval for fund transfers. It also formally defines “debt-based crowdfunding company” and “finance value,” while specifying required founding documents, authorized signatories, and regulatory sandbox eligibility.
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