Regulatory Alerts2021-03-31
Added · Updated
Circular on Compliance with Fair and Transparent Customer Dealing Instructions for Credit Contracts
The Central Bank of Saudi Arabia mandates that all banks operating in the Kingdom rectify credit contract clauses violating the Instructions on Dealing with Customers Fairly and Transparently No. (56/2012) by 1/9/2018. Banks must eliminate provisions allowing unilateral interest rate adjustments, unspecified debt collection entities, unreadable fonts, and ambiguous waiver clauses, while ensuring compliance with maximum fee limits and clear early payment terms. Failure to adhere to these requirements subjects institutions to penalties under the Central Bank Law No. 23 of 1971 and the Banking Law No. 28 of 2000.
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