Draft Circular on Customer Information Issued by the Saudi Credit Information Company (SIMAH)

In the name of Allah, the Most Gracious, the Most Merciful

Saudi Arabian Monetary Authority
Headquarters
Banking Supervision Department

Reference No.: ....................................................
Date: ....................................................
Attachments: ....................................................

Reference No.: 341000059261
Date: 1434/05/11

Draft Circular

Respected / Dear Sir,
Peace, mercy and blessings of Allah be upon you:

Subject: Customer Information Issued by the Saudi Credit Information Company (SIMAH)

With reference to the Credit Information System issued by Royal Decree No. M/37 dated 1429, and in continuation of the Authority's Circular No. M.A.Sh/55 dated 1428/01/29 regarding full compliance with work rules and the membership agreement signed with the Saudi Credit Information Company (SIMAH), we inform you that the Authority has recently observed some banks employing unprofessional practices to collect distressed debts and mislead distressed customers into believing that their names are removed from the "SIMAH list" upon settlement of the debt.

Since adopting such practices with distressed bank customers reinforces the incorrect concept regarding the role of credit information companies and negatively affects efforts to raise beneficiaries' awareness about the actual content of credit reports, the Authority hereby emphasizes the necessity for all banks operating in the Kingdom, specifically bank collection management staff, contracted collection companies, and other relevant departments, to completely refrain from unprofessional practices when collecting distressed debts. This is especially true regarding misleading distressed customers that their names are removed from the "SIMAH list" upon settlement, which contradicts the actual mechanism of credit reporting in effect.

For information and compliance.

Yours sincerely,

Deputy Governor for Technical Affairs
(Signature)
Abdulrahman bin Abdulmohsen Al-Khalifa

Distribution Scope
Banks operating in the Kingdom.

P.O. Box 2992, Riyadh 11169, Central Telegraph Office, Telex 404400, Telephone 4633000, Fax 4662119