Based on the supervisory role of the Saudi Arabian Monetary Authority over the financial institutions under its supervision and its keenness to apply the principle of fairness and transparency, and a supplement to SAMA's explanatory statement on Muharram 21, 1439 AH corresponding to October 11, 2017 AD regarding its follow-up to the procedures and decisions taken by the Board of Directors at Saudi Fransi bank to address a number deficiencies in the application of sound governance and control policies and their applications.  With regard to the "program of operations for employee incentives for past years", and the institution's emphasis on implementing all appropriate regulatory procedures on the bank and verifying the adequacy and fairness of corrective measures taken by the board of directors, SAMA clarified the following:

                Upon receiving the information, SAMA assigned a team of inspectors to conduct field visits to verify the information received, review the policies and control procedures followed by the bank and the authority manual, and to submit an urgent report on the findings.

                SAMA held several meetings with the bank's board of directors, and a number of urgent corrective decisions were taken, including mandating the bank to appoint an independent examination team to submit a report to SAMA and the bank's board of directors of the findings. In addition, the bank must stop the employee incentives program, reviewing the authority table, amendments to the organizational structure, and appointments of new administrative. It should be noted that the bank is in the process of filing cases with the competent courts on a number of persons to recover amounts paid that are inconsistent with the program or the powers granted.

                After receiving and reviewing the reports prepared for this purpose, it was established for the institution that Saudi Fransi bank has committed a number of violations related to the application of sound governance and supervisory policies and their applications, and accordingly SAMA imposed financial fines on the bank.

                The competent authorities were provided with a full report on the subject of suspected violations outside the jurisdiction of SAMA to complete the necessary legal procedures.

                In conclusion, the Saudi Arabian Monetary Authority (SAMA) calls on the financial institutions under its supervision to adhere to laws, regulations and instructions, including the application of sound and effective governance.