King Salman on Saturday issued a royal order instructing the Ministry of Justice to put in place controls to limit the practice of financial activity by unauthorized persons, according to the Finance Companies Control Law. This seeks to accurately track down the offenders, promptly putting them on trial and inflicting penalties on them.
The minister of justice and the chairman of the Supreme Judicial Council, Dr. Walid bin Mohammed Al-Samaani, said that the new regulations will help to reduce the exploitation of debtors’ default through illegal means that do not take into account the debtors’ credit status and their ability to repay the debt.
Furthermore, he pointed out that the royal order will guarantee the ministry’s online links to the Saudi Arabian Monetary Authority (SAMA) so that it can put in place the necessary mechanisms and arrangements, in partnership between the two bodies.
Article 4 of the Finance Companies Control Law states that no finance activities, as specified under this law, maybe engaged in without obtaining a license in accordance with the provisions of this law and other applicable laws.
It also states that an unlicensed person may not, by any means, indicate, explicitly or implicitly, the engagement in finance activities as specified under this law.
According to the second clause of Article 35 any person violating any of the provisions of the law shall be subject, depending on the gravity of the violation, to a fine not exceeding SR500,000 ($133,000) and imprisonment for a term not exceeding two years, or either penalty.
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