The Saudi Arabian Monetary Authority (SAMA) would like to announce the
issuance of the Rules Regulating Agent Banking. The Rules set the regulatory
framework for the provision of banking services and products through banking
agents and are issued in accordance with SAMA’s Charter promulgated by Royal
Decree No. (23) dated 23/05/1377H and amended by the Banking Control Law issued
by Royal Decree No. (M/5) dated 22/02/1386H.
This comes as part of SAMA’s efforts to enhance financial inclusion by
expanding the scope of banking services in underserved areas in line with the
objectives of the Financial Sector Development Program and to keep abreast with
the economic development witnessed in Saudi Arabia to achieve Vision 2030.
The Rules aim to expand the scope of banking services and products; enhance
financial inclusion for the unbanked or underbanked population while
maintaining the soundness and stability of the banking sector; encourage banks to
contract with agents when offering banking services to reduce the cost of
banking services; provide a regulatory and supervisory framework for Agent
Banking, which will enable the offering of banking services and products whilst
ensuring full compliance with the Banking Control Law and SAMA’s instructions;
provide the minimum standards and requirements for Agent Banking; outline the
permissible activities that can be carried out by a Banking Agent; and provide
a set of minimum standards of data and network security, consumer protection
and risk management to be adhered to in the conduct of Agent Banking.
SAMA would like to point that it has published the draft Rules on its
website for public consultation prior to final approval and took all the
feedback it has received into account. To view the Rules please visit the
websit through the link: http://www.sama.gov.sa/en-US/Laws/Pages/BankingRulesAndRegulations.aspx