Saudi Arabia:
Circular Concerning The Enforcement Of Financing Arrangements Made With Unlicensed Financiers
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By way of Circular Number 13/Ta'a/6815, dated 27/8/1438 H.
(23/5/2017 G.), the Saudi Arabian Minister of Justice has ordered
Courts to refer to the Saudi Arabian Monetary Agency
("SAMA") any requests for the
enforcement of financing arrangements which are not made with
entities licensed to engage in finance activities.
Article 4 of the Finance Companies Control Law and Article 4 of
its Implementation Regulations prohibit the carrying out of finance
activities without a license from SAMA. Persons violating such
requirement may be liable to fines or imprisonment, or both (see
Article 35(2) of the Finance Companies Control Law).
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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