License Disclosure Instructions

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In the Name of Allah, the Most Gracious, the Most Merciful Saudi Arabian Monetary Authority Office of the Deputy Governor for Supervision Headquarters

Ref: 68631/67
Date: 1440/11/15
Attachments: 4 pages

Circular

Dear Sirs,
Peace, mercy, and blessings of God be upon you, Subject: License Disclosure Instructions.

Referring to the supervisory and regulatory role of the Saudi Arabian Monetary Authority over financial institutions under its supervision, alongside its contribution to financial stability and its efforts to enhance customer trust by dealing with licensed institutions subject to the Authority's supervision and regulation.

Attached are the License Disclosure Instructions aimed at raising customer awareness regarding financial institution information and enabling them to identify the supervisory and regulatory authority to which they are subject.

For your information, and to act in accordance with the provisions of these Instructions within three months from its date, while providing the Authority with a compliance plan within one month from its date.

Yours sincerely,

Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision

Distribution Scope:

• Banks and commercial banks operating in the Kingdom.
• Financing companies operating in the Kingdom.
• Insurance companies, reinsurance companies, foreign insurance companies, and licensed free profession companies operating in the Kingdom.
• Credit reporting companies operating in the Kingdom.
• Exchange companies and institutions operating in the Kingdom.
• Payment companies and payment systems operating in the Kingdom.
• Cash centers.

P.O. Box 2992, Riyadh 11169, Tel: 4662300 - Fax: 4662543

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License Disclosure Instructions
July 2019

Saudi Arabian Monetary Authority
Saudi Arabian Monetary Authority

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Table of Contents

Contents	Page Number
1. Introduction	3
2. Definitions	3
3. Scope of Application	3
4. Compliance Instructions	3
5. Proposed Disclosure Format	4

License Disclosure Instructions | Version No. 1.0 | Issue Date July 2019 | Page Number 2-4

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1. Introduction:
   1-1 These Instructions aim to raise customer awareness regarding financial institution information that enables them to identify the regulatory and supervisory authorities to which they are subject, by mandating financial institutions to disclose the necessary data and licenses to enhance customer and investor confidence. 2-1 These Instructions specify all information that financial institutions must display in the margins of their correspondence. They must be interpreted in accordance with related systems, regulations, and instructions.

2. Definitions:
   The following words and expressions - wherever they appear in these Instructions - carry the meanings indicated opposite each of them, unless the context otherwise dictates:

Term	Definition
Authority	Saudi Arabian Monetary Authority.
Financial Institution	Banks and commercial banks, branches of foreign banks, insurance companies, reinsurance companies, licensed free profession companies, foreign insurance companies, financing companies, credit reporting companies, exchange companies and institutions, cash centers, and payment companies and payment systems in the Kingdom supervised by the Saudi Arabian Monetary Authority.
Advertising and Promotion	The marketing, promotion, and guidance by all means and methods for the financial institution's services and products.
Margins	A word or title mentioned at the top or bottom of a page to display important content, which may also appear via the financial institution's stamp (if the financial institution uses stamps).
Correspondence	Postal and electronic messages, promotional advertisements, and any other documents.
Customers	Consumers and beneficiaries of the services and products provided by financial institutions.

3. Scope of Application:
   These Instructions apply to all financial institutions listed in the definitions above.

4. Compliance Instructions:
   1-4 Financial institutions' correspondence, office publications, brochures, emails and websites, mobile applications, commercial directories, media advertising, promotional press releases, direct communication with potential customers or other persons, and social media

License Disclosure Instructions | Version No. 1.0 | Issue Date July 2019 | Page Number 3-4

==Screenshot for page 5== must contain in their margins a statement that they are licensed and subject to the supervision and regulation of the Authority. They must also contain, as a minimum, the information referred to in paragraph (4-4). 2-4 External branches of a Saudi financial institution operating in other countries may add this information to their communication channels (to avoid customer confusion), provided that this does not conflict with the laws of the country in which they operate. 3-4 The advertised name of the financial institution must match the name under which the license was issued. 4-4 Licensed financial institutions must include the following information in their correspondence and other documents (such as contracts and agreements):
a. Name of the financial institution, its type, headquarters, and commercial registration number. b. Licensing authority and license number.
c. That it is subject to the supervision and regulation of the Saudi Arabian Monetary Authority.
d. National address.
5-4 In cases where it is not possible to disclose all required data in advertisements, it is sufficient to disclose that the financial institution is subject to the supervision and regulation of the Authority. 6-4 Banking transactions involving commercial papers are exempted from the provisions of these Instructions.

5. Proposed Disclosure Format:
   1-5 Disclosure in the margins of letters, emails, and websites must include, as a minimum, the following data:
   Name of the financial institution----------------, entity type----------------, share capital----------------, commercial registration number----------------, P.O. Box----------------, telephone----------------, national address----------------, website----------------, licensed under license number----------------, and subject to the supervision and regulation of the Saudi Arabian Monetary Authority. 2-5 For local bank branches operating abroad:
   Name of the financial institution----------------, branch of a Saudi financial institution, subject to the supervision and regulation of----------------.

License Disclosure Instructions | Version No. 1.0 | Issue Date July 2019 | Page Number 4-4

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