SAMA’s Non-Objection Not Needed for Membership Agreements With "Fintechs" Supervised by SAMA or CMA

Saudi Central Bank (SAMA)

Circular

To the Esteemed Credit Information Companies,
Peace be upon you, and God's mercy and blessings.

Subject: Allowing Credit Information Companies to enter into membership agreements with "Fintech" companies supervised by the Saudi Central Bank or the Capital Market Authority without obtaining SAMA’s non-objection.

Further to the Central Bank's instructions issued under Circular No. (43.35895) dated 20/4/1443H, which stipulate the requirement to obtain SAMA’s written non-objection prior to entering into membership agreements with any entity other than financial institutions supervised and regulated by the Central Bank.

We wish to inform you that Credit Information Companies may enter into membership agreements with "Fintech" companies that have obtained or applied for a license/permit to conduct one of the activities supervised by SAMA or the Capital Market Authority, without the need to obtain SAMA’s non-objection, subject to the following conditions:

• The Credit Information Company must verify that the Fintech company has submitted an application to SAMA or the Capital Market Authority for a license/permit prior to entering into the agreement.
• The Fintech company’s intended activity must include establishing a credit relationship with consumers upon commencing operations.
• The rights and obligations under the membership agreement, including granting access to consumers' credit records or information, shall not take effect until a copy of the license/permit for conducting the activity is obtained.
• In the event that Fintech companies cease their operations, or their license/permit expires or is revoked (for any reason), they must be enabled to update records related to their existing customers, without being granted the right to inquire about new consumers' information.

The Central Bank confirms that full responsibility lies with Credit Information Companies to comply with the above, and to fully adhere to the provisions of the Credit Information System Law, its Executive Regulations, and related instructions.

Issued by the Saudi Central Bank (SAMA).
Yours sincerely,

Al-Amnan
Yazid bin Ahmed Al-Sheikh
Deputy Governor for Supervision

Distribution Scope:

• Credit Information Companies operating in the Kingdom.

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