Circular Re. Rules for Regulating Buy-Now-Pay-Later (BNPL) Companies

No: 450360390000 · Date (G): 17/12/2023 · Date (H): 5/6/1445

Based on the powers vested in SAMA under the Finance Companies Control Law issued by Royal Decree No. M/51 dated 13/08/1433H .
We hereby inform you of the issuance of his Excellency the Governor’s Decision No. 145/M Sh T dated 23/05/1445H, which includes the approval of the Rules for Regulating Buy-Now-Pay-Later (BNPL) Companies in the attached format. We would also like to inform you that it has been decided to exempt BNPL companies and other finance companies, when practicing BNPL activities, from applying the deductible ratios stated in the Responsible Lending Principles for Individual Customers , for total financing not exceeding SAR 2,000. This exemption is made notwithstanding the related provisions in the Responsible Lending Principles for Individual Customers and Article 19 of the Rules for Regulating Buy-Now-Pay-Later (BNPL) Companies , without prejudice to compliance with other provisions of the Principles.