Regulatory Alerts2019-01-13
Rules on Outsourcing for Finance Companies
The Saudi Central Bank (SAMA) issued the Rules on Outsourcing for Finance Companies to establish a comprehensive regulatory framework governing how licensed finance companies outsource tasks to external service providers. The Rules mandate that finance companies implement a Board-approved outsourcing policy, conduct thorough risk assessments, secure written non-objection from SAMA for core tasks, and ensure strict contractual safeguards covering data privacy, business continuity, audit rights, and compliance monitoring. Finance companies are granted a 180-day transition period to align their policies and a 365-day period to regularize existing contracts, with non-compliance constituting a violation of the Finance Companies Control System.
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