The following words and expressions, wherever they occur in these Implementing Regulations, shall have the meanings given next to them unless otherwise required by the context.

The Law: The Credit Information Law promulgated by Royal decree No. M/37, dated 5/7/1429H.

Implementing Regulations: Implementing Regulations of the Credit Information Law.

SAMA: Saudi Central Bank.

Governor: Governor of Saudi Central Bank.

Credit Information: Consumer Information and data on his/her credit dealings.

Companies: credit information companies licensed to collect and maintain credit information on consumers, as well as provide

members with such information upon their request.

Member: A government or private entity engaged in a contract to exchange credit information with at least one credit information

company.

Consumer: A natural or juridical person who has credit dealings.

Credit Record: A report issued by companies containing credit information on a consumer.

Public Records: Credit information records maintained by government entities, such as records of specialized funds and banks that

offer government loans, as well as judicial authorities, government committees, bankruptcy and insolvency files and the like.

Negative Decision: Any decision made by a member against a consumer based on his/her credit record.

Negative Information: Any information given by a member that may adversely affect the assessment of a consumer's credit record.

Committee: The Committee for Settlement of Credit Information Violations and Disputes.

It is prohibited for any natural or legal person to provide credit information activity before obtaining a license from the bank in accordance with the provisions of the law and its executive regulations.

• The company licensed to provide credit information services must meet the following conditions:

  • 1- It must be a joint-stock company with its main headquarters inside the Kingdom.
  • 2- Its paid-up capital must not be less than fifty million Saudi Riyals.
  • 3- The bank's approval of the company's articles of incorporation and charter.
  • 4- The bank's approval of its automated credit information system.
  • 5- Availability of qualified human resources, financial and operational resources to practice the work efficiently and effectively in accordance with the provisions of the law and its executive regulations.
  • 6- Commitment to comply with any instructions or work rules issued by the bank.

• The founders of the company wishing to provide credit information services shall fill out the license application form accompanied by the following:

  • 1- A statement of the names of the founders, their addresses, and each one's share in the company's capital.
  • 2- The company's articles of incorporation and its charter.
  • 3- A certificate from a licensed bank in the Kingdom confirming the deposit of its paid-up capital.
  • 4- A copy of the national identity card or commercial register of the founders.
  • 5- A description of the automated system used to collect and store consumers' credit information, including the system's characteristics.
  • 6- An economic feasibility study.
  • 7- The company's business plan for the first three years from its establishment, including the nature of the activities it intends to provide, its future business plan, estimated financial statements, expected growth rates, annual activity costs based on expected growth rates, the expected number of employees, principles of effective management (corporate governance) and its internal control, and any data and information requested by the bank.
  • 8- The company's organizational structure.
  • 9- A fee for studying the license application amounting to fifty thousand Saudi Riyals.
  • 10- A declaration not to engage in any activity other than the purposes stated in the company's charter except after the bank's approval.

• The applicant must complete any data requested by the bank within thirty working days from the bank's notification thereof; otherwise, the application will be subject to cancellation, and the bank will not decide on the license application for approval or rejection until all required data and documents are completed.

The applicant shall finalize the incorporation procedures according to the Companies Regulations, including commercial registration. The Governor's decision to grant the license will be issued thereafter. Nevertheless, the company must not in any case provide its services prior to issuance of the Governor's decision; otherwise the application procedures will be revoked.

The license duration is five years. The license is renewed in accordance with the prescribed terms and procedures. The bank collects a one-time financial fee upon issuance of the license amounting to one percent of the company's paid-up capital, and a financial fee of half a percent of the company's paid-up capital upon license renewal. The renewal application must be submitted at least six months before the expiration date.