Regulatory Alerts2019-02-20
Regulations Governing the Operation of Agent Banking Activities in the Kingdom of Saudi Arabia
The Saudi Central Bank (SAMA) issued regulations establishing a comprehensive regulatory framework and minimum requirements for banks contracting with agents to provide banking services, aiming to enhance financial inclusion while safeguarding sector stability. The rules mandate that banks assume full responsibility for agent selection, oversight, and compliance, requiring detailed suitability assessments, robust due diligence, and strict adherence to AML/CFT, data security, and customer protection standards. Furthermore, the regulations dictate standardized contract terms, record-keeping obligations, inspection protocols, and clear procedures for contract renewal, termination, and regulatory enforcement to ensure consistent operational integrity across the agent banking network.