Saudi Central Bank (SAMA)
472038084
Reference No.: 1447/07703
Date: N/A
Attachments: N/A

Circular

Respected Sirs,
Peace be upon you,

Subject: Mechanism for Assigning Debt Collection Operations of Banks and Finance Companies to Finance Debt Collection Entities Licensed by SAMA.

Based on the Saudi Central Bank's supervisory and regulatory role, and relying on its authorities under its system issued by Royal Decree No. (36/M) dated 11/4/1427H, the Finance Companies Monitoring System issued by Royal Decree No. (51/M) dated 13/8/1433H, and the Banks Monitoring System issued by Royal Decree No. (5/M) dated 27/2/1386H, which authorized the Bank to regulate the banking and finance companies sectors, and referring to Circular No. (44.55679) dated 8/7/1444H regarding restricting the assignment of debt collection tasks for banks and finance companies to licensed Finance Debt Collection Entities starting from 1/1/2024M, and attached to Circulars No. (45.29.88) dated 1/5/1445H, No. (45.7236) dated 26/12/1445H, No. (46.14147) dated 1/3/1446H, No. (1.6877869) dated 29/7/1446H, and No. (1.68934.4) dated 25/9/1446H concerning specifying a city allowing finance entities to contract with licensed Finance Debt Collection Entities that have obtained the Bank's initial approval. And referring to His Excellency the Governor's decision approving amendments to the Executive Regulations of the Finance Companies Monitoring System, and His Excellency the Governor's decision approving amendments to the Licensing Rules for activities supporting finance operations.

It is hereby decided to discontinue the application of the aforementioned circulars, with debt collection operations for banks and finance companies to be assigned to entities compliant with the requirements and conditions specified in systems, regulations, and instructions, following the issuance of a No Objection Letter from SAMA.

• Regarding contracting with debt collection operators without requiring them to be licensed by SAMA;
• Without prejudice to the provisions of relevant systems, rules, and instructions, including those related to task assignment, debt collection, and customer protection.

For information and action accordingly.
Yours sincerely,

Yazeed bin Ahmed Al-Sheikh
Deputy Governor for Supervision

Distribution Scope:

• Banks operating in the Kingdom.
• Finance companies operating in the Kingdom.
• Finance Debt Collection Entities licensed by SAMA.

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