SAMA Publishes Open Banking Framework and Other Regtech Updates
The Saudi Arabian Monetary Agency (SAMA) published the open banking framework, granted permits to four fintech firms to operate under its Regulatory Sandbox, and granted licenses to three payment financial technology companies specializing in e-commerce payments and e-wallet services. Additionally, SAMA is seeking comments, until November 06, 2022, on the draft amendments to the Finance Companies Control Law.
The key highlights of the aforementioned updates follow:
- SAMA set out the open banking framework, as part of one of the key outputs of the Open Banking Program, which includes a comprehensive set of legislation, regulatory guidelines, and technical standards based on international best practices to enable banks and fintech companies to provide open banking services in the Kingdom. SAMA clarified that the open banking services focus on the Account Information Service (AIS) and Payment Initiation Service (PIS). SAMA notified that it is tracking the development of banks and fintech companies to ensure their readiness to launch open banking services within the first quarter of 2023. The Open Banking Program is one of the initiatives of the Fintech Strategy, which is a pillars of the Financial Sector Development Program (FSDP) under Saudi Vision 2030.
- As part of other technology-related developments, SAMA granted permits to "Wally Global Arabia, Sanam Aliliddikhar, Istishraf Al-Bayanat, and Spare Arabian Financial Company" to operate under its Regulatory Sandbox, bringing the total number of permitted fintech companies to 42. SAMA clarified that this batch of permitted companies will develop and launch new and innovative open banking solutions in accordance with international best regulatory and technical practices. SAMA also granted licenses to three new financial technology companies namely, “Smart Digital Payment company (Tiqmo), Arab Sea Financial Company and Fatoraah” specialized in E-commerce payments and E-wallet services. This brings the total number of payment companies licensed by SAMA to 22, in addition to 5 companies were granted an “In-principle Approval.”
- The draft amendments to the Finance Companies Control Law aim to support the stability of the finance sector while contributing to the achievements of the Kingdom Vision 2030 objectives. The draft amendments provide Saudi Central Bank power to exclude the requirements where finance companies intend to carry out the financing business through the form of a joint stock company. The amendments also include granting SAMA the discretion to exempt companies from the prohibition to engage in another activity other than financing as well as the limitation related to a member of the board of directors who simultaneously works in another finance companies boards but of different activity. The amendments also address new provision enabling the Saudi Central Bank to waive requirements, as needed, related to the financial emerging technologies.
Related Links
- Press Release on Open Banking Framework
- Grant of Permit to Fintech Companies
- Grant of License to Smart Digital Payment Company
- Grant of License to Arab Sea Financial Company and Fatoraah
- Consultation on Finance Companies Control Law
Keywords: Middle East and Africa, Saudi Arabia, Banking, Fintech, Regtech, Open Banking, Regulatory Sandbox, Licensing, Fintech Strategy, Governance, SAMA
Previous Article
ECB Sets Deadline for Banks to Meet Its Climate Risk ExpectationsRelated Articles
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.
DNB Publishes Multiple Reporting Updates for Banks
DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.
NBB Sets Out Climate Risk Expectations, Issues Reporting Updates
The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting
EBA Updates Address Securitization Standards and DGS Guidelines
The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.
FSB Publishes Letter to G20, Sets Out Work Priorities for 2023
The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023
ISSB Standards May Become Effective from January 2024
The International Organization of Securities Commissions (IOSCO) welcomed the confirmation statement by the International Sustainability Standards Board (ISSB) setting out its progress in the development of its first sustainability-related corporate disclosure standards.