Instructions for Publishing Banking Penalties

In the name of Allah, the Most Gracious, the Most Merciful Saudi Central Bank Headquarters

Banking Policies Department

Ref: 391000035993
Date: 29/03/1439
Attachments: 2

Circular

Respected
Sir/Madam
Bank

After greetings,

Subject: Instructions for Publishing Banking Penalties.

In light of the Saudi Central Bank's supervisory and regulatory role over financial institutions under its supervision, and its keenness to apply the principles of justice and transparency to increase confidence in the banking sector and enable users of financial data and decision-makers, including shareholders, investors, lenders, and bank customers in general, to access the financial fines imposed by the Bank on banks resulting from violations of the Bank's supervisory systems and instructions, the following has been decided:

First: Banks shall publish in their annual reports banking violations for which penalty decisions have been issued by the Bank under the heading "SAMA Penalty Decisions." This shall include violations of the current fiscal year and violations of the previous fiscal year (with the exception that in the first year, publication is limited to the current year only). The publication must include the subject of the violations, the number of penalty decisions, and the total amount of fines in Saudi Riyals, according to the format provided in the table below:

Subject of Violation	Previous Fiscal Year	Current Fiscal Year
Violation of the Bank's supervisory instructions	Number of Penalty Decisions: 3; Total amount of financial fines in Saudi Riyals: 1,500,000	Number of Penalty Decisions: None; Total amount of financial fines in Saudi Riyals: -
Violation of the Bank's instructions on customer protection	Number of Penalty Decisions: 5; Total amount of financial fines in Saudi Riyals: 250,000	Number of Penalty Decisions: 6; Total amount of financial fines in Saudi Riyals: 1,000,000

P.O. Box 2992, Riyadh 11469, Telegram Address: Markazi, Fax 4044000, Tel 4633000, Fax 4662414

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In the name of Allah, the Most Gracious, the Most Merciful Saudi Central Bank Headquarters

Banking Policies Department

Date:
Attachments:

Second: The subjects of violations shall be determined solely according to the attached subject classification guide in these instructions, according to the following subjects:

• Violation of the Bank's supervisory instructions.
• Violation of the Bank's instructions on customer protection.
• Violation of the Bank's instructions on due diligence.
• Violation of the Bank's instructions on the performance level of ATMs and POS terminals.
• Violation of the Bank's instructions on due diligence in combating money laundering and financing of terrorism.

Please note that the Bank will publish the violations reported in the banks' annual reports via its website. For inquiries, please contact Mr. Abdullah Al-Azari, Tel: (4633000) ext. (327), or email: asalanazi@sama.gov.sa.

Accept my respects and appreciation,

[Signature]
Ahmed bin Abdullah Al-Sheikh
Deputy Governor for Supervision

Distribution Scope:

• Banks operating in the Kingdom.

P.O. Box 2992, Riyadh 11469, Telegram Address: Markazi, Fax 4044000, Tel 4633000, Fax 4662414

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Appendix to the Instructions for Publishing Banking Penalties
Number of Pages: 2

Subject: Guide for Classifying Banking Violation Subjects.

Subject of Violation in the Penalty Decision	Subject of Violation at Publication
Violation of Banking Procedures Instructions (Judicial)	Violation of the Bank's supervisory instructions
Violation of Banking Procedures Instructions (Civil)	Violation of the Bank's supervisory instructions
Violation of Banking Procedures Instructions (Security)	Violation of the Bank's supervisory instructions
Violation of Instructions on Disclosure and Attachment of Balances and Accounts	Violation of the Bank's supervisory instructions
Violation of Inspection Instructions	Violation of the Bank's supervisory instructions
Violation of Data Request Instructions	Violation of the Bank's supervisory instructions
Violation of Liquidity Instructions	Violation of the Bank's supervisory instructions
Violation of Cyber Instructions	Violation of the Bank's supervisory instructions
Violation of Interest Rate Instructions	Violation of the Bank's supervisory instructions
Violation of Requirements for Appointment in Leadership Positions	Violation of the Bank's supervisory instructions
Violation of Instructions on Opening Branches and Equipping, Installing, and Transferring ATMs	Violation of the Bank's supervisory instructions
Violation of Instructions on Outsourcing Tasks to Third Parties	Violation of the Bank's supervisory instructions
Violation of Instructions on Banking Products and Services	Violation of the Bank's supervisory instructions
Violation of Clearing House Instructions	Violation of the Bank's supervisory instructions

Appendix to the Instructions for Publishing Banking Penalties

Number of Pages: 2

Subject: Guide for Classifying Banking Violation Subjects.

Subject of Violation in the Penalty Decision

• Violation of Sa'ir System Instructions
• Violation of Instructions on the Level of Electronic Services via the Saudi Network
• Violation of Internal Bank Policies and Instructions
• Violation of Security Safety Instructions
• Violation of Saudization Programs Instructions
• Violation of Rules and Operating Procedures for the Saudi Payments Network System
• Violation of Customer Protection Instructions
• Violation of Automated Claims Processing (CPS) Instructions
• Violation of Money Laundering and Financing of Terrorism Combating Instructions
• Violation of Instructions on Opening and Operating Bank Accounts
• Violations of the Bank's Instructions on the Performance Level of ATMs and POS Terminals
• Others

Subject of Violation at Publication

• Violation of the Bank's supervisory instructions
• Violation of the Bank's supervisory instructions
• Violation of the Bank's supervisory instructions
• Violation of the Bank's supervisory instructions
• Violation of the Bank's supervisory instructions
• Violation of the Bank's supervisory instructions
• Violation of the Bank's instructions on customer protection
• Violation of the Bank's instructions on customer protection
• Violation of the Bank's instructions on due diligence in combating money laundering and financing of terrorism.
• Violation of the Bank's instructions on due diligence
• Violations of the Bank's Instructions on the Performance Level of ATMs and POS Terminals
• Violation of the Bank's supervisory instructions