Guide to Financial Institutions Services Fees

Saudi Central Bank
Unit
Reference No. 472038000
Date: 02/07/1447
Attachments: 1 + Guide to Financial Institutions Services Fees

OIPT
Unit

To:
The Saudi Central Bank
SAMA
Saudi Central Bank

Circular

Greetings,

Subject: Amendment of the Guide to Financial Institutions Services Fees under the Articles of the System of Administrative Fees.

Starting from the supervisory and regulatory role of the Saudi Central Bank, and relying on the powers granted to it under the Bank System, and extending its role to protect customers of financial institutions subject to its supervision and regulation, and referring to the Royal Decree No. (M/63) dated 24/04/1441 H, and the updated Circular No. 950930000038 dated 08/09/1441 H, and the updated controls on consumer finance under Circular No. 1966110001535 dated 05/09/1441 H, and the principles and rules for protecting financial institutions' customers issued under Circular No. 396600644 dated 05/09/1441 H, and the model form for individual consumer finance contracts issued under Circular No. 76485044 dated 04/01/1442 H,

We inform you that the Guide to Financial Institutions Services Fees, which applies to financial institutions subject to the supervision and regulation of the Central Bank, is hereby cancelled in its entirety, and any provisions therein that conflict with the updated provisions of the System related to administrative fees are superseded based on the approval of the owner of authority.

As you will find attached a copy of the updated provisions related to administrative fees, the following articles have been amended:

First: Article (9) of the updated Consumer Finance Controls under Circular No. 351000116619 dated 05/09/1441 H.

Second: Rule (1) of the Special Behavioral Rules issued under the principles and rules for protecting financial institutions' customers under Circular No. 44006639 dated 04/01/1442 H.

Third: Paragraph (11.1) of Article (11) of the model form for individual consumer finance contracts issued under Circular No. 44058467 dated 07/07/1442 H.

From the date of its publication on the Central Bank's electronic website, (60) days shall be given for awareness and implementation.

Accept my highest regards.

Abdullah bin Saleh Al Sheikh
Deputy Governor for Financial Behavior

Distribution:
All financial institutions subject to the supervision and regulation of the Saudi Central Bank.

P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000 Kingdom of Saudi Arabia, Riyadh 11169, P.O. Box 2992

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Saudi Central Bank
Unit

Updated System Provisions Related to Administrative Fees

Under the updated Consumer Finance Controls Article (9) under Circular No. 351000116619 dated 05/09/1441 H

The Systemic Text After Amendment

The financing institution must comply with the instructions issued by the Central Bank regarding administrative fees.

Under the Special Behavioral Rules Rule (1) issued under the principles and rules for protecting financial institutions' customers under Circular No. 44006639 dated 04/01/1442 H

The bank or financing company must comply with the instructions issued by the Central Bank regarding administrative fees.

Administrative fees may not be deducted after contract signing, except for the initial evaluation upon the client's approval.

Under the model form for individual consumer finance contracts issued under Circular No. 44058467 dated 07/07/1442 H

Article (11), Paragraph (11.1)

The beneficiary commits to paying the agreed fees and costs, provided that the total of these fees and costs does not exceed the lower of 0.5% of the finance amount or 2,500 Saudi Riyals, excluding government taxes.

P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000 Kingdom of Saudi Arabia, Riyadh 11169, P.O. Box 2992