Emphasis on Exercising Due Diligence when Verifying Customer Income Prior to Granting Finance

Saudi Central Bank

Reference No.: 10698605
Date: 1446/12/08 AH
Attachments: None

Circular

To the Esteemed,
Peace, mercy, and blessings of God be upon you,

Subject: Emphasis on Exercising Due Diligence when Verifying Customer Income Prior to Granting Finance.

Based on the authorities vested in the Saudi Central Bank under the Financing Companies Control System issued by Royal Decree No. (M/51) dated 1433/08/13 AH, and its Executive Regulations issued by the Governor's Decision No. (2/M Sh T) dated 1434/04/14 AH, including its authority to regulate and supervise the financing sector, and to take necessary measures to safeguard its integrity and stability.

Accordingly, the Saudi Central Bank wishes to emphasize to all financing companies the importance of exercising due diligence prior to granting finance, commensurate with potential risks, and verifying the authenticity of documents submitted by customers to prove their income, while enhancing related procedures in compliance with applicable regulations and directives.

For your information and compliance.

Yours sincerely,

Yousef bin Ahmed Al Sheikh
Deputy Governor for Supervision

Distribution Scope:

• Financing companies operating in the Kingdom.

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