SAMA to begin mandatory application of rules and regulation of finance companies

SAMA announced the start of mandatory application and control of financing system in Saudi Arabia on Sunday. The governor of the Saudi Arabian Monetary Agency Fahad Al Mubarak that the entry into the full application and regulations financing systems will have positive effects for the protection of beneficiaries by improving the level of transparency and disclosure, and support the creation of a competitive environment contribute to providing more services at a higher quality and competitive price, in order to serve the citizen and meets the needs of the market, In addition to enhancing the strength and stability of the finance sector. Ma'aleh urged citizens and residents who wish to obtain financing to deal only with banks and finance companies licensed,

Dr. Al-Mubarak explained that the institution has agreed to thirty-seven applications for practicing the business of financing, including a dozen banks and four companies for the exercise of mortgage finance, and licensed as well as for the seven companies to the practice of financing the activities of non-real estate financing, as there are 14 other company received preliminary approval from the Foundation for the exercise of activities different funding, which is now in the process of completing the statutory procedures with the Ministry of Commerce and Industry.

And between Ma'aleh full mandatory application that began to come after the end of the settlement of the situation deadline in accordance with the provisions and regulations of the funding provided for in Article systems (36) to monitor the finance companies issued by Royal Decree No. (M / 51) dated 13/08/1433 AH, that "companies granted operating and institutions that engage in financing activity in the UK before the validity of this system deadline of two years to settle their status in accordance with the provisions of this order, "and ends by the end of that period on Saturday, 15/1/1436 H corresponding to 11/08/2014 AD.

He stressed Governor of the Saudi Arabian Monetary Agency Fahd Al-Mubarak on the banks and finance companies need for full commitment to implement the provisions of the financing systems, and regulations of the executive, and issued by the institution of rules and instructions.

The Minister reiterated the need for the winning companies on preliminary approvals for the practice of financing activities to complete procedures at the Ministry of Trade and Industry during the period prescribed, also it confirmed that it will not hesitate to take legal action against the violation of regulations and directives.

He urged the public to go to the organization's Web site for a list of licensed financial institutions, and financing systems and regulations of the executive, as well as answers to frequently asked questions on the subject.