This regulation specifies the bank's requirements for organizing the activities of audit committees in insurance and/or reinsurance companies.

The objective of this Regulation is to compel Insurance and/or Reinsurance Companies to apply high standards to Audit Committees' activities.

Insurance and/or reinsurance companies must comply with this Regulation in accordance with the provisions of the Cooperative Insurance Companies Control Law issued by Royal Decree No. M/32 dated 2/6/1424 AH, the Implementing Regulation of the Cooperative Insurance Companies Control Law, the Insurance Companies Governance Regulation, the requirements for appointment to leadership positions in financial institutions supervised by SAMA, in addition to the relevant laws, regulations, instructions, and decisions.

• Without prejudice to the provisions of Article One of the Implementing Regulation of the Cooperative Insurance Companies Control Law, the following words and phrases - wherever they appear in this Regulation - shall have the meanings set forth opposite each of them, unless the context requires otherwise:
  A) Bank: The Saudi Central Bank.
  B) Regulation: The Regulation of Audit Committees in Insurance and/or Reinsurance Companies.
  C) Company or Companies: Insurance and/or Reinsurance Companies.
  D) Board of Directors: The Board of Directors of the Insurance and/or Reinsurance Company.
  E) Senior Management: The Managing Director, Chief Executive Officer, General Manager and their deputies, the Chief Financial Officer, heads of main departments, persons responsible for risk management, internal audit, and compliance functions in the company, their equivalents, and holders of any other positions determined by the Bank.
  F) Audit Committee (Committee): An independent committee directly linked to the company’s Board of Directors, specialized in monitoring the performance and application of internal control systems in the company, ensuring the efficiency and effectiveness of these systems, verifying the implementation of decisions related to internal control, and ensuring compliance with the application of the Cooperative Insurance Companies Control Law, its Implementing Regulation, and other related laws, regulations, and instructions, in addition to the competencies stipulated in this Regulation.
  G) Regulatory Compliance Department (Compliance Department): An independent department linked to the Audit Committee and administratively to the CEO, specialized in ensuring the company’s compliance with the laws, regulations, and instructions issued by the Bank and other regulatory authorities. It submits reports to the Audit Committee regarding any violations of laws and instructions within the company. This definition also applies to the Regulatory Compliance Officer (Compliance Officer).
  H) Internal Audit Department: An independent department linked to the Audit Committee and administratively to the CEO. It is responsible for preparing the company’s audit and review work plan, monitoring the company’s performance by auditing and examining its operations to verify the absence of any financial or non-financial violations of the company’s internal regulations, ensuring compliance with internal control systems, verifying the efficiency and effectiveness of these systems, and ensuring the implementation of internal control decisions. It submits its reports to the Audit Committee. This definition also applies to the Internal Auditor.

The provisions of this Regulation shall apply to insurance and/or reinsurance companies, and the bank may obligate any of the professional firms to comply with this Regulation whenever it deems appropriate.