Regulatory Alerts2021-05-26
Added · Updated
Circular Re. Shariah Governance rules for finance companies
The Saudi Central Bank mandates that licensed finance companies implement Shariah governance rules effective January 1, 2022. The regulations require companies to establish a specialized Shariah Committee with specific independence criteria, define the oversight responsibilities of the Board of Directors and Senior Management, and enforce regular Shariah compliance and audit functions. Finance companies must disclose committee member profiles, ensure the independence of Shariah decisions, and report non-compliance to the regulator, with the Central Bank retaining the authority to grant exemptions or enforce penalties for violations.
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