"Sama" Announces the most prominent amendments to the fees for services of the Financial Institutions Tariff Guide

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"Sama" Announces the most prominent amendments to the fees for services of the Financial Institutions Tariff Guide

Issue Central Bank of Saudi Arabia "Sama" Amendments related to service fees included in the Financial Institutions Services Tariff Guide, which will enter into force within 60 days from the date of publication of The evidence.
It came in a statement "Sama"Based on the supervisory and supervisory role of the Central Bank of Saudi Arabia, and based on the powers granted to it under the Central Bank of Saudi Arabia system, issued by Royal Decree No. (M/36) dated 11/4/1442 AH, and other relevant regulations, and as an extension of its role in setting instructions and procedures to protect clients of financial institutions subject to its supervision and control, and with reference to the bank tariffs updated pursuant to Circular No. (381000095093) dated 9/10/1438 AH, and to the regulatory texts related to determining the ceiling of administrative fees when granting financing and contained in the consumer financing controls updated pursuant to Circular No. (351000116619) dated 9/10/1435 AH, and the principles and rules for protecting clients of financial institutions issued by Circular No. (44006639) dated 1/26/1444 AH, and the model form for the consumer financing contract for individuals issued by Circular No. (44058467) dated 7/17/1444 AH.
The Financial Institutions Services Tariff Guide was issued, according to which financial institutions subject to the supervision and control of the Central Bank must abide by and abide by what is stated therein when imposing fees for services and products provided to customers, and this guide repeals any provisions that conflict with it.

Regulatory texts Amended

The amended regulatory texts related to administrative fees are based on the approval of the authorized person, as follows:
First: Article (9) of the Consumer Finance Controls updated pursuant to Circular No. (351000116619) dated 10/9/1435 AH.
Second: Rule No. (1) of the Special Conduct Rules of Principles and Rules for Protecting Clients of Financial Institutions issued by Circular No. (44006639) dated 1/26/1444 AH.

See the most prominent amendments related to service fees included in the Financial Institutions Services Tariff Guide issued by

Third: Paragraph (11.1) of Article (11) of the model formula for the consumer financing contract for individuals issued by Circular No. (44058467) dated 7/17/1444 AH.
For review and action accordingly within (60) days from the date of its publication on the website of the Central Bank.

Texts after amendment

– Article (9) of the consumer financing controls updated pursuant to Circular No. (351000116619) dated 10/9/1435 AH
After the amendment: The financing entity must adhere to the instructions of the Central Bank issued regarding administrative fees"
– Rule No. (1) of the special behavioral rules contained in the principles and rules for protecting clients of financial institutions issued by Circular No. (44006639) dated 1/26/1444 AH.
After amendment: "A. The bank or financing company must adhere to the instructions of the Central Bank issued regarding administrative fees".
B. Administrative fees may not be deducted except after signing the contract, with the exception of real estate evaluation costs, which may be deducted after the client obtains initial approval to grant real estate financing."
– Paragraph (11.1) of Article (11) of the model formula for the consumer financing contract for individuals issued by Circular No. (44058467) dated 7/17/1444 AH
After amendment: "The beneficiary is committed to paying the costs and fees agreed upon in Article (5) of the contract, provided that the total of these costs and administrative fees does not exceed (2,500) riyals or (0.5%) of the financing amount 8, whichever is less, and this does not include government taxes.".