SAMA issues updated regs for Finance Companies Control Law

The updated regulations aim to regulate the requirements for practicing all financing activities

The Saudi Central Bank (SAMA) issued today the updated implementing regulation of the Finance Companies Control Law, as part of its supervisory and regulatory role over the finance sector, and its continuous efforts to support the sector's stability and growth.

The updated regulations aim to regulate the requirements for practicing all financing activities. This includes updating the aggregate finance amount offered by a finance company, supporting companies applying for a license by updating the bank guarantees required to submit the licensing applications, revising provisions relevant to related parties, and handling cases of expiration of licenses granted to finance companies, the central bank said in a statement.

These updates repeal the Rules Regulating Consumer Microfinance Companies and the Rules of Engaging in Microfinance Activity, and amend the Rules of Licensing Finance Support Activities, it added.

SAMA previously published the updated draft of the implementing regulation of the Finance Companies Control Law, seeking comments and feedback from the public and experts. The comments and feedback received were carefully reviewed and reflected in its final version.

The updated regulations and the updated rules of licensing finance support activities can be viewed on SAMA's website (Link).