Using the Qawaem Program as a Mandatory Requirement Before Providing Any Credit Facilities to Commercial Entities

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

General Directorate for Supervision of Financing Companies
Ref. No.: ........................................................
Date: 16/10/1440 AH
Attachments: None

Circular

Dear Sirs,
Peace, mercy, and blessings of Allah be upon you, Subject: Using the "Qawaem" Program as a Mandatory Requirement Before Providing Any Credit Facilities to Commercial Entities.

Pursuant to the powers granted to the Saudi Central Bank under the Financing Companies Control System issued by Royal Decree No. (M/51) dated 13/8/1433 AH, including Article 21 thereof which stipulates that "the Bank shall supervise the activities of financing companies and exercise its authorities in accordance with the provisions of this System and its Executive Regulations", and Article 2 of the Executive Regulations of the Financing Companies Control System which stipulates that "the Bank shall regulate the financing sector and supervise the activities of financing companies in accordance with the System and its Regulations", and with reference to the "Qawaem" Program established by the Ministry of Commerce and Investment in cooperation with the Saudi Organization for Chartered and Professional Accountants (SOCPA), aimed at improving work efficiency and utilizing deposited financial statements, enhancing the credibility and reliability of accounting information, and raising the level of transparency for commercial entities.

Given this Program's contribution to improving the quality and reliability of accounting information, the Bank confirms that all licensed financing companies in the Kingdom must comply with using the "Qawaem" Program as the source for obtaining financial statements of commercial entities obligated to deposit them in the Program, prior to providing any credit facilities.

For your information and implementation effective from 16/8/2019 CE.

Yours sincerely,

Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision

Distribution Scope:

• Financing companies operating in the Kingdom.
• Credit reporting companies.

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