Preparing a quarterly risk report, providing it to the Central Bank, as well as the annual and quarterly audited financial statements and prudential statements, and publishing the reports, quarterly financial statements and annual audited financial statements on the company's website

[Saudi Central Bank Logo]

Reference No.: 44028131
Date: 1444/04/02
Attachments: None

Circular

To: Respected Entities,
Peace, mercy and blessings of God be upon you,

Subject: Preparing a quarterly risk report, providing it to the Central Bank, as well as the annual and quarterly audited financial statements and prudential statements, and publishing the reports, quarterly financial statements and annual audited financial statements on the company's website.

Based on the powers granted to the Central Bank under relevant systems and regulations; we wish to inform that debt crowdfunding establishments must comply with the following:

First: A debt crowdfunding establishment shall prepare a quarterly risk report for discussion by the Risk and Credit Management Committee (if any) and the Board of Directors, based on senior management review and board approval of necessary measures to address the risks mentioned in the risk report. The report must include, at a minimum, the following:

1. A comprehensive assessment of the risks facing the company as referred to in Article (Twenty) of the specified debt crowdfunding activity regulations, and the measures taken to mitigate them, review of financial positions exposed to market price fluctuation risks, as well as situations where permitted operational limits are exceeded.
2. The assumptions and factors underlying the risk assessment procedures, including: risk categories, risk levels, frequency, risk unit, and changes affecting them.
3. Analysis of situations where the establishment exceeded permitted limits, with explanation of reasons and volume of new business development and reserves held by the company.
4. Evaluation of disclosure criteria and ensuring their comprehensiveness for understanding financing opportunity risks.

Second: Providing the Central Bank with the report referred to in Item (First) after discussion by the Risk and Credit Management Committee (if any) and the Board of Directors, approval thereof including decisions taken regarding it within (30) working days from the end of each of March, June, September, and December of every Gregorian year.

Third: Providing the Central Bank with quarterly financial statements and the auditor's report within (20) working days from the end of each of March, June, and September of every Gregorian year.

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[Saudi Central Bank Logo]

Fourth: Providing the Central Bank with audited annual financial statements, the auditor's report, and the Board of Directors' report within (45) working days from the end of the Gregorian year.

Fifth: Providing the Central Bank with annual and quarterly prudential statements in accordance with the attached approved forms, verifying the accuracy of all data, and submitting them to the Central Bank within (25) working days from the end of each of March, June, September, and December for quarterly prudential statement forms, and within (60) working days from the end of the Gregorian year for annual prudential statement forms.

Sixth: The prudential statement forms shall be sent electronically in (Excel) format after completion as required within the deadlines specified in Item (Fifth) above, along with a scanned electronic copy of the Certification Statement form after being signed by the Chief Accountant and CFO, and the CEO or Managing Director as applicable.

Seventh: The annual prudential statement forms must be reviewed by the company's external auditor before submission to the Central Bank, and a signed copy of the audit certificate from the auditor shall be attached with the forms.

Eighth: Publishing the auditor's report, Board of Directors' report, quarterly financial statements, and audited annual financial statements on the company's website within (10) working days from the expiration of the stipulated submission deadline, including the following:

1. Statement of Financial Position.
2. Income Statement.
3. Cash Flow Statement.
4. Board of Directors' Report.

For information and compliance.

Yours sincerely,

Yazeed bin Ahmed Al-Sheikh
Deputy Governor for Supervision

Distribution Scope:

• Debt crowdfunding establishments licensed by the Central Bank.

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