Regulatory Alerts2020-10-12
Follow up circular for obtaining SAMA NOC prior to nomination, assignment, reassignment, appointment, or reappointment of senior positions in financial institutions
The Saudi Central Bank (SAMA) issued this follow-up circular to clarify that the requirement for obtaining a No Objection Certificate (NOC) applies exclusively to senior management roles, explicitly excluding the Board of Directors. Financial institutions must amend their internal policies to ensure that all senior position holders secure SAMA's prior approval before nomination, appointment, reassignment, or assumption of other leadership levels in public or private entities. This clarification takes immediate effect and mandates compliance across all regulated banking, financing, insurance, credit information, exchange, and payment entities operating within the Kingdom.
In the name of Allah, the Most Gracious, the Most Merciful
Saudi Central Bank (SAMA) Office of the Deputy Governor for Supervision
No.: 42010693 Date: 1442/02/25 AH Attachments: None
Circular
To the Esteemed, Peace, mercy, and blessings of Allah be upon you.
Subject: Obtaining the Central Bank's No Objection Certificate (NOC) prior to accepting nomination, assignment/reassignment, appointment/reappointment of any senior position holders in financial institutions with any public or private entity, or assuming other levels such as board memberships, committees, or similar.
In follow-up to the Bank's instructions communicated via Circular No. 420.761 dated 1442/02/12 AH, regarding the requirement for all financial institutions to take necessary actions in amending their internal policies to ensure that senior position holders obtain the financial institution's approval and secure the Bank's NOC prior to accepting nomination, assignment/reassignment, appointment/reappointment with any public or private entity, or assuming other levels such as board memberships, committees, or similar.
The Bank wishes to clarify that the scope of application of the aforementioned instructions pertains only to senior management position holders, excluding the Board of Directors, in accordance with the lists provided in Appendices (6, 5, 4, 3, 2, 1) of the requirements for appointing senior positions in financial institutions under the Bank's supervision, as communicated via Circular No. 1994/67 dated 1441/01/10 AH.
For your information and action, effective as of its date. Yours sincerely,
Fahd bin Ibrahim Al-Shathri Deputy Governor for Supervision
Distribution Scope:
- Banks and financing companies operating in the Kingdom.
- Financing, refinancing, and contract registration companies operating in the Kingdom.
- Insurance, reinsurance, foreign insurance, and licensed professional services companies operating in the Kingdom.
- Credit information companies operating in the Kingdom.
- Exchange companies and institutions operating in the Kingdom.
- Payment and payment system companies operating in the Kingdom.
P.O. Box 2992, Riyadh 11169, Tel: 4667200 - Fax: 4667543