Regulatory Alerts2020-09-29
Obtaining Central Bank approval before accepting the nomination, assignment/reassignment, or appointment/reappointment of leadership positions in financial institutions, public or private, or assuming other responsibilities
The Saudi Central Bank (SAMA) mandates that financial institutions amend their internal policies to secure prior no-objection approval from SAMA before appointing, reassigning, or nominating leadership personnel to public or private roles or other responsibilities. This requirement ensures that current and prospective executives maintain sufficient independence, avoid conflicts of interest, and remain fully capable of fulfilling their core institutional duties. Non-compliance with this pre-approval process is explicitly subject to the enforcement provisions of Article 20 of SAMA's applicable fit and proper requirements.
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