Article 14 of the Saudi Banking Control Law
المادة 14 من نظام مراقبة البنوك
The article requires every bank to appoint two auditors each year from the list registered with the Ministry of Commerce, who submit a report on the balance sheet and profit and loss account to be sent to the Agency.
Official text (Arabic)
This article has not been amended since the law was issued.
يجب على كل بنك أن يعين سنويا مراقبين اثنين للحسابات من القائمة المسجلة بوزارة التجارة والصناعة، وعلى مراقبي الحسابات تقديم تقرير عن الميزانية السنوية وحساب الأرباح والخسائر، ويجب أن يتضمن هذا التقرير رأي مراقبي الحسابات في مدى تمثيل الميزانية للمركز المالي للبنك ومدى اقتناعهما بأية إيضاحات أو معلومات يكونان قد طلباها من مديري البنك أو غيرهم من موظفيه.
وبالنسبة للبنوك المتخذة شكل شركة يجب أن يتلى التقرير المشار إليه في الفقرة السابقة مع التقرير السنوي لإدارة البنك في اجتماع الشركاء الذي يجب أن يتم في خلال الستة الأشهر التالية لانقضاء السنة المالية للبنك على الأكثر، ويجب على إدارة البنك إرسال صورة من هذين التقريرين إلى المؤسسة.
ويسري حكم الفقرة الأولى من هذه المادة على البنوك الأجنبية بالنسبة لفروعها في المملكة، ويجب عليها أن ترسل إلى المؤسسة صورة من تقرير مراقبي الحسابات.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 14 explained in plain English
This article ensures independent external oversight of banks' accounts:
1. Appointment: each bank appoints annually two auditors from the list registered with the Ministry of Commerce and Industry.
2. Content of the report: the two auditors submit a report on the annual balance sheet and profit and loss account, including their opinion on:
- the extent to which the balance sheet represents the bank's true financial position,
- and the extent to which they are satisfied with the explanations or information they requested from the bank's managers or staff.
3. Banks in the form of a company: the auditors' report is read, with the annual report of the bank's management, at the partners' meeting, which must be held within the six months following the end of the financial year at the latest, and management sends a copy of both reports to the Agency.
4. Foreign banks: the provision of the first paragraph (appointing two auditors and their report) applies to their branches in the Kingdom, and they must send the Agency a copy of the auditors' report.
Article 15 complements this provision by requiring the bank to send its annual balance sheet, certified by its auditors, to the Agency. For clarification of audit obligations, one may consult a lawyer specialized in banking and finance.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 14 of the Saudi Banking Control Law
How many auditors must a bank appoint?
Each bank must appoint annually two auditors from the list registered with the Ministry of Commerce and Industry.
When is the bank's partners' meeting held to present the auditors' report?
Within the six months following the end of the bank's financial year at the latest.
Must foreign bank branches appoint auditors?
Yes. The first paragraph applies to them, and they must send the Agency a copy of the auditors' report.
More articles on Auditing Bank Accounts and Financial Statements
- Article 15
The article requires every bank to send the Agency a true and correct consolidated monthly statement of its financial position by the end of the following month, and its certified annual balance sheet within six months of year-end.
يجب على كل بنك أن يرسل إلى المؤسسة بيانا موحدا شهريا عن مركزه المالي، وذلك في نهاية الشهر التالي، ويجب أن يكون هذا البيان حقيقيا وصحيحا وبالشكل الذي تحدده المؤس
- Article 17
The article allows the Agency to ask any bank at any time for any data it considers necessary to achieve the law's purposes, at the time and in the form it sets.
يجوز للمؤسسة أن تطلب في أي وقت من أي بنك أن يقدم إليها في الوقت وبالشكل اللذين تحددهما أية بيانات تراها ضرورية لتحقيق أغراض هذا النظام.
- Article 20
The article requires the Agency to publish, periodically, consolidated figures on the main information in the statements banks send under Article 15.
على المؤسسة أن تنشر دوريا بيانات موحدة عن المعلومات الرئيسية التي تحتوي عليها البيانات المشار إليها في المادة الخامسة عشرة.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.