In application of the provisions of Article Sixteen of the Banking Control Law, banks are required to comply with the following:

• 1- Not to violate the rules set by the Saudi Central Bank regarding the limits of loans that the bank may provide.

• 2- Not to violate the rules set by the Saudi Central Bank for granting certain types of loans and other transactions, including but not limited to:

  • (a) Notifying the Saudi Central Bank in advance before committing or associating with any loan application submitted by a non-resident entity.

  • (b) Obtaining the prior written approval of the Saudi Central Bank before taking any action to grant any loan submitted to a non-resident entity.

  • (c) Obtaining the prior written approval of the Saudi Central Bank before inviting foreign banks to participate in any joint facilities in Saudi Riyals.

  • (d) Obtaining the prior written approval of the Saudi Central Bank before participating in any joint facilities arranged in Saudi Riyals outside the Kingdom, whether for residents or non-residents.

  • (e) Obtaining the prior written approval of the Saudi Central Bank before participating in any joint facilities arranged in foreign currencies for non-residents.

  • (f) Obtaining the prior written approval of the Saudi Central Bank before owning any securities abroad or subscribing to them.

  • (g) Obtaining the prior written approval of the Saudi Central Bank before owning any securities abroad in foreign currencies or subscribing to them, except for what the bank owns in treasury bills and tradable certificates of deposit.

  • (h) Obtaining the prior written approval of the Saudi Central Bank before issuing or participating in the issuance of any securities domestically or abroad.

  • (i) Consulting the Saudi Central Bank before introducing any new activities within the Kingdom that would create a financial obligation on banks.

• 4- Not to violate any of the conditions and requirements set by the Saudi Central Bank when banks engage in certain types of businesses with their clients, 5- including but not limited to:

  • (a) Adhering to the bank pricing regulations.

  • (b) Informing government entities of external guarantees issued by banks that are not included in the approved list communicated to banks or in violation of any of the conditions that must be provided in these guarantees, in accordance with the Ministry of Finance and National Economy Circular No. 11/M/12407 dated 5/8/1396 AH and any subsequent circulars.

  • (c) Refraining from conducting or mediating any transactions that would circumvent the provisions of the Banking Control Law within or outside the Kingdom.

  • (d) Refraining from executing any program to obtain deposits, except for current accounts and fixed deposits, without consulting the Saudi Central Bank.

  • (e) Refraining from conducting any banking activities with any individuals not authorized to engage in them according to the applicable regulations and rules, including unlicensed money changers as per the decision of the Minister of Finance and National Economy No. 3/920 dated 16/2/1402 AH and others.

• 6- Not to violate the rules of cash reserves that must be maintained against certain types of credits or guarantees issued by the Saudi Central Bank in accordance with the law.

• 7- Not to violate the instructions regarding the minimum ratios of guarantees between the loan amount and the assets provided as collateral, which banks must observe in certain types of loans as issued by the Saudi Central Bank in accordance with the law.

• 8- Not to violate the instructions issued by the Saudi Central Bank regarding the assets that banks must maintain within the Kingdom and their ratio to deposit liabilities.

• 9- Not to violate the instructions issued by the Saudi Central Bank regarding working hours in banks and their holidays.

• 10- Not to violate the provisions of the Banking Control Law and the rules and instructions implementing it, which prohibit banks from assisting others or concealing them in conducting banking or commercial activities not permitted to them, or exceeding the provisions of the Banking Control Law and the rules implementing it. In this regard, it is prohibited for any bank employee to request or obtain a benefit in exchange for granting or recommending the granting of banking facilities from the bank.

In accordance with the provisions of Article Twelve of the Banking Control Law, banks are required to comply with the following:

• 1- No individual may be appointed as a member of the board of directors of more than one bank. 2- Any person nominating a member to the board of directors of any bank is obligated to declare their membership in the board of directors of any other bank.

• 3- No one may undertake any of the following actions before obtaining the prior written approval of the Saudi Central Bank:

  • (1) Selecting any person for membership on the board of directors of any bank who has previously held this position in any banking institution that has been liquidated or who has previously been removed from this position in any banking institution, (2) even if the liquidation or removal occurred prior to the effective date of the Banking Control Law, (3) whether that banking institution is located within the Kingdom or outside it, (4) and any person nominating a member to the board of directors of any bank is obligated to declare this information. (5) Appointing any person to the position of manager in the bank who has previously held this position in any banking institution that has been liquidated or who has previously been removed from this position in any banking institution, even if the liquidation or removal occurred prior to the effective date of the Banking Control Law, (6) whether that banking institution is located within the Kingdom or outside it, (7) and any person nominating or applying for this position is obligated to declare this information.

• 4- Providing all data and information requested by the Saudi Central Bank regarding individuals who hold or are nominated for leadership positions in the bank.

In application of the provisions of Article Seventeen of the Banking Control Law, banks are required to comply with the following:

1- Submit the following data to the Saudi Central Bank in the form it deems appropriate and in accordance with the instructions specified by the Saudi Central Bank:

• (1) Data to be submitted monthly:

  • (1/ 1) Statement of the bank's financial position.

  • (1/ 2) For banks with branches and units abroad, also submit:

    • - The consolidated financial position of the bank, including domestic and foreign branches and units.

    • - The financial position of each branch or unit abroad.

  • (1/ 3) Statement of foreign liabilities and assets.

  • (1/ 4) Statement of the bank's purchases and sales of foreign currencies.

  • (1/ 5) Data on import financing.

• (2) Data to be submitted every three months:

  • (2/ 1) Statement of profit and loss account.

  • (2/ 2) For banks with branches and units abroad, also submit the profit and loss account for each branch or unit separately abroad.

  • (2/ 3) Statement of deposits from government agencies and institutions.

  • (2/ 4) Statement of the geographical distribution of foreign assets.

  • (2/ 5) Quarterly data on the bank's financial position and operational activity to be published in daily newspapers four times during the bank's financial year in accordance with the rules governing the trading of shares, (2/ 6) prior to publication.

• (3) Data to be submitted every six months:

  • (3/ 1) Statement of credit classification by economic sectors.

  • (3/ 2) Statement of analysis of future receivables.

  • (3/ 3) Statement of loans granted to non-residents and foreign investments.

  • (3/ 4) Statement of doubtful loans and advances.

• (4) Data to be submitted every twelve months:

  • (4/ 1) Statement of the bank's budget and annual closing accounts.

  • (4/ 2) Detailed report on the bank's accounts monitoring on the budget.

  • (4/ 3) Annual report of the bank's Board of Directors.

  • - For banks with branches and units abroad, also submit the budget and annual closing accounts for each branch or unit and the detailed report of the auditors on them.

• (5) Any data specific to the bank's branches and units abroad in accordance with the instructions of the Saudi Central Bank regarding them.

• (6) A copy of the minutes of each meeting of the General Assembly of shareholders or partners' meeting within one month from the date of the meeting.

• (7) Any other data or information requested by the Saudi Central Bank in the form it deems appropriate and at the time it specifies.

2- Assign external auditors of banks to directly provide the Saudi Central Bank with any data, clarifications, or information regarding the bank's activities within the scope of their work.

In accordance with the provisions of Article Eighteen of the Banking Control Law, banks are required to fully cooperate with the inspection team dispatched by the Saudi Central Bank to inspect the bank's operations. To achieve this, it is prohibited for any bank employees to engage in the following actions:

• (1) Failing to allow the aforementioned team to access the bank's records, accounts, and any other documents that the team deems necessary for the performance of its duties.

• (2) Failing to provide the available information and clarifications requested by the aforementioned team or intentionally concealing them.

• (3) Failing to report any violations in the bank's operations to the aforementioned team immediately upon the commencement of its duties or intentionally concealing them.

• (4) Failing to comply with the recommendations and instructions directed to the bank as a result of the inspection conducted by the aforementioned team.

In application of the provisions of Article Twenty-Two of the Banking Control Law of the Saudi Central Bank, if it is found that one of the banks has violated the provisions of the Banking Control Law and the rules issued in implementation thereof, or has followed a policy that could seriously affect its ability to meet its obligations or the liquidity of its funds, it may take one or more of the following Procedures:

• 1- Imposing the penalties stipulated in Article Twenty-Three of the Banking Control Law.

• 2- Suspending or dismissing any employee of the bank who intentionally provided false data, information, or mentioned incorrect Facts.

• 3- Notifying the bank of the violations occurring in its operations and requesting the correction of the situation within a timeframe specified by the Saudi Central Bank, 4- either in writing or by summoning the Chairman of the Board of Directors of the bank, the Managing Member, or the responsible General Manager, 5- if the bank does not comply with the instructions of the Saudi Central Bank, it may take some or all of the Procedures outlined hereafter against it.

• 6- Notifying the Chairman of the Board of Directors of the bank through a representative from the Saudi Central Bank or by any other means of the necessity to convene the Board of Directors of the bank within a period specified by the Saudi Central Bank to consider the violations attributed to the bank and take the necessary actions to rectify them, 7- and a representative or more from the Saudi Central Bank shall attend this meeting.

• 8- Obligating the bank to take any Procedures deemed necessary by the Saudi Central Bank to correct the situation.

• 9- Appointing one or more advisors by the Saudi Central Bank to the bank to provide advice in managing its operations.

• 10- Appointing a monitoring member by the Saudi Central Bank in the Board of Directors of the bank for a period specified by the Saudi Central Bank, who shall have the right to participate in the discussions held in the meetings of the Council and to record his opinion on the decisions taken by the Council during those meetings.

• 11- Taking any other Procedures deemed necessary by the Saudi Central Bank after obtaining the approval of the Minister of Finance and National Economy.

2- This Decision shall be communicated to those required for its implementation and shall take effect from the date of its issuance.