SAMA announces amendment articles of implementing regulations of finance laws
Move aims to ensure efficacy and soundness of the financial sector to operate in a competitive environment
The Saudi Central Bank (SAMA) has amended several articles of the Implementing Regulations of the Finance Laws in Saudi Arabia.
According to a report by the Saudi Press Agency, the amendments include the decision of the Minister of Finance to revoke Article 4 of the Implementing Regulation of Real Estate Finance Law. The change means real estate finance companies are now allowed to practice financing activities without stipulating the prohibition of combining Real Estate financing and other forms of financing activities. However, SAMA retains the discretion to restrict licensing by certain conditions, the report noted.
Further to the public consultation released earlier on the public Consultation Platform, SAMA approved amendment of Article 16 of the Implementing Regulation of the Finance Companies Control Law. From now on, finance companies are allowed to practice financing activities without stipulating the prohibition of combining any of the financing activities. SAMA retains the discretion to restrict its licensing by certain conditions.
The amendments are said to reflect SAMA’s on-going efforts to review Implementing Regulations of Finance Laws to ensure efficacy and soundness of the financial sector to operate in a competitive environment, the report concluded.
