Regulatory Alerts2020-10-05
Digital Confirmation of Banking Products for Clients of Public Banks in the Kingdom
The Saudi Arabian Monetary Authority (SAMA) issued this circular to permit banks operating in the Kingdom to utilize approved digital confirmation services for personal financing and credit card products, provided they implement specific risk assessments and customer verification protocols. Banks must ensure that service providers are certified by the National Center for Digital Certification, initiate applications through one electronic channel and activate them via another, and secure customer consent through post-submission phone verification within a 24-hour window. Additionally, financial institutions are required to maintain robust data encryption and privacy standards, retain relevant legal documentation, update contracts to validate electronic execution, and set financing limits aligned with their risk classifications.