Regulatory Alerts2013-04-13
Compliance with Employing Citizens and the Requirements for Contracting with Recruitment Service Companies
The Saudi Arabian Monetary Authority (SAMA) mandates that all banking and exchange house positions, including senior leadership, cash handling, and security roles, be exclusively filled by qualified Saudi nationals by December 31, 2013, with non-Saudi hires restricted to specific support roles without system access. Financial institutions must submit localized job replacement plans and national training programs to SAMA within three and two months respectively, while strictly prohibiting direct or indirect engagement with external banking marketing agents operating within the Kingdom. Additionally, banks must contract only with vetted recruitment and outsourcing firms, ensure all employee permits match assigned duties, and assign internal HR and Compliance departments to monitor, report quarterly on, and enforce these localization and contracting requirements.