The amendment of three articles in the Implementing Regulation of the Finance Companies Control Law

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

General Department for the Supervision of Finance Companies Reference No.: ……………………………… Enclosures: ………………………………

Circular

To:
Peace, mercy and blessings of Allah be upon you,

Subject: Amendment of some articles in the Implementing Regulation of the Finance Companies Control Law.

With reference to the powers granted to the Saudi Central Bank under the Finance Companies Control Law issued by Royal Decree No. (51/M) dated 13/8/1433H,

we inform you of the issuance of His Excellency the Governor's Decision No. 85/M/ST dated 26/5/1441H amending some articles of the Implementing Regulation of the Finance Companies Control Law, as follows:

First: Amendment of Article Three of the Implementing Regulation of the Finance Companies Control Law to read as follows:
"-1. Every legal entity licensed to conduct one or more of the financial activities specified in Article Ten of the Law, or any other financial activity approved by the Bank under that article, shall be subject to the provisions of this Regulation. -2. As an exception to the provision of paragraph (1) of this article, microfinance companies shall be subject to the rules issued by the Bank regarding such matters."

Second: Amendment of paragraph (1) of Article Nine of the Implementing Regulation of the Finance Companies Control Law to read as follows: "Microfinance activities shall be limited to financing productive activities for beneficiaries who are small business owners, artisans, and those in the same category, provided that the granted financing amount does not exceed the amount determined by the Bank."

Third: Amendment of Article Ninety of the Implementing Regulation of the Finance Companies Control Law to read as follows: "A finance company shall not conduct business with, or be conducted by, entities that engage in one or more of the supporting financial activities, unless it obtains a letter from the Bank confirming no objection thereto."

For your information and compliance.
Yours sincerely,

Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision

Distribution Scope:

• Finance companies operating in the Kingdom.

Contact: P.O. Box 2992, Riyadh 11169, Tel: +966 1 4662020, Fax: +966 1 4662488