Regulatory Alerts2018-09-27
Raising Awareness of Banking Secrecy Regularly Among Bank Employees
The Saudi Arabian Monetary Authority requires all banks and financial institutions operating in the Kingdom to implement periodic employee awareness programs on banking secrecy principles, related instructions, and associated penalties, verified through regular surveys. These institutions must also establish a comprehensive internal banking secrecy policy that explicitly covers the importance of information confidentiality, handling and disclosure mechanisms, applicable penalties for non-compliance, and ongoing monitoring of employee adherence. This directive reinforces previous circulars by mandating structured internal governance to prevent unauthorized disclosure of customer data prior to obtaining regulatory no-objection.
In the Name of Allah, the Most Gracious, the Most Merciful
Saudi Arabian Monetary Authority Headquarters
Banking Policy Department
Ref. No.: -------------------- Enclosures: --------------------
Ref. No.: 67/2820 Date: 1440/01/17 Enclosures: None
Circular
To: Respected Banks,
Greetings,
Subject: Periodic Awareness of Bank Employees Regarding Banking Secrecy.
In continuation of the Authority's previous instructions issued via Circular No. 18717/371000 dated 1437/2/14 Hijri, regarding the confirmation of banking information secrecy instructions and non-disclosure of customer data and information prior to obtaining the Authority's no-objection, and Circular No. 79052/391000 dated 1439/7/18 Hijri, regarding instructions for providing government and non-government entities with documents, information, and data related to customers' bank accounts.
The Authority emphasizes the importance of banks and financial institutions adhering to the following:
First: Periodic awareness of employees regarding the principles of banking secrecy, related instructions, and penalties for non-compliance, with compliance monitored through periodic surveys.
Second: Establishing an internal banking secrecy policy including, at a minimum, the following: (importance of banking information secrecy, mechanism for handling banking information, mechanism for disclosing such banking data and information, penalties for non-compliance with related instructions, mechanism for periodically monitoring employee compliance with banking secrecy instructions).
Yours sincerely,
Fahd bin Ibrahim Al-Shathri Deputy Governor for Supervision
Distribution Scope
- Banks and financial institutions operating in the Kingdom.
P.O. Box 2992, Riyadh 11169, Telegram: MARKAZI, Telex: 404400, Tel: 4633000, Fax: 4662414