Conducting Periodic Independent Testing and Reporting Observations of Violations of the Provisions of the Rules

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Saudi Central Bank
Saudi Central Bank

Reference No.: 44017957
Date: 1444/03/03 (AH)
Attachments: None

Circular

To: The Respected,
Greetings,
Subject: Compliance with conducting a periodic independent test at least annually and including in the internal control systems report, at minimum, any observations regarding violations of the Rules' provisions.

Based on the powers granted to the Saudi Central Bank under the system issued by Royal Decree No. (M/36) dated 1442/04/11 AH, and the Rules Governing Money Changer Business issued by Minister of Finance Decision No. (4686) dated 1441/11/21 AH, and in continuation of Circular No. (35217/41) dated 1440/07/06 AH regarding providing the Saudi Central Bank with annual and quarterly financial statements, and annual internal control systems reports, and referring to Paragraph (a-7) of Article (Fourteen), and Paragraph (c) of Article (Thirty-One) of the Rules Governing Money Changer Business.

In light of what has been observed regarding the application of the aforementioned Rules' provisions, and within the framework of the Saudi Central Bank's continuous efforts to develop the money changer sector in the Kingdom, money changer centers are required to comply with the following:

1. The provision of Paragraph (a/7) of Article (Fourteen) of the Rules, which requires conducting a periodic independent test at least annually to evaluate the money changer center's operations, including the center's automated systems, and the extent of compliance with its internal policies and procedures, to be completed by no later than the end of July of each Gregorian year.
2. Compliance with the provision of Paragraph (c) of Article (Thirty-One) of the Rules, which requires the external auditor to evaluate internal control systems, with the report including at minimum any observations regarding the center's compliance with the provisions of the Rules Governing Money Changer Business.

For information and action, with acknowledgment of receipt within one week from the date hereof, noting that the Saudi Central Bank will take all necessary regulatory actions against money changer centers violating the provisions of this Circular.

Yours sincerely,

Yazeed bin Ahmed Al-Sheikh
Deputy Governor for Supervision

Al-Tawil
Distribution Scope:

• Money changer centers operating in the Kingdom.

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P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel. +966 11 463 3000 P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000

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