Regulatory Alerts2020-10-05
Digital confirmation of banking products for bank customers
The Saudi Arabian Monetary Authority (SAMA) issues this circular to establish a non-objection framework allowing banks and financial institutions to deliver financing products via digital confirmation services for individuals and SMEs. The guidance mandates compliance with eleven minimum requirements, including utilizing nationally certified digital confirmation providers, maintaining robust risk assessments and security protocols, and adhering to specific application approval timelines of 24 hours for individuals and three business days for enterprises. These updated guidelines supersede previous directives, formally integrating electronic transactions law compliance and requiring updated contracts to ensure legally binding digital execution.