Article 18 of the Saudi Banking Control Law
المادة 18 من نظام مراقبة البنوك
The article allows the Agency, after the Minister of Finance's approval, to inspect any bank's records and accounts at its premises through its staff or auditors it appoints, and requires bank staff to provide documents and information.
Official text (Arabic)
This article has not been amended since the law was issued.
للمؤسسة بعد موافقة وزير المالية والاقتصاد الوطني أن تجري تفتيشا على سجلات وحسابات أي بنك، سواء بمعرفة موظفيها أو بمعرفة مراجعين تعينهم، على أن يتم فحص الدفاتر وحسابات البنك في مقره، وفي هذه الحالة يجب على موظفي البنك أن يقدموا ما يطلب منهم من سجلات وحسابات وغير ذلك من الوثائق التي في حوزتهم أو تحت سلطتهم، وأن يدلوا بما لديهم من معلومات تتعلق بالبنك.
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 18 explained in plain English
This article gives the Agency the power of field inspection of banks, which is stronger than the mere request for data in Article 17.
Conditions and controls of inspection:
- It takes place after the approval of the Minister of Finance and National Economy.
- It covers the records and accounts of any bank.
- It is carried out by the Agency's staff or by auditors it appoints.
- The examination of books and accounts takes place at the bank's premises.
Duties of bank staff during inspection:
- To provide the records, accounts and other documents requested that are in their possession or under their authority.
- To give the information they have relating to the bank.
The obligation falls on the staff themselves, not only on the bank's management. Anyone who learns information during inspection is subject to the prohibition on disclosure and use in Article 19, a prohibition covering "any person" who obtains information during or on the occasion of work relating to applying the law, so it includes the Agency's staff and the auditors it appoints. Article 17, which allows the Agency to request data from banks at any time, does not require the Minister's approval as this article does for inspection.
A bank employee who is unsure about the scope of what he must provide may consult a lawyer specialized in banking and finance.
Practical example
The Agency decided, after the approval of the Minister of Finance, to inspect a bank in Khobar through auditors it appointed. The auditors came to the bank's premises and asked the head of the credit department for the large loan files. The manager must provide the files in his possession or under his authority and give the information he has about the bank.
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 18 of the Saudi Banking Control Law
Is the Agency entitled to inspect banks?
Yes, after the approval of the Minister of Finance and National Economy, through its staff or auditors it appoints.
Where are a bank's books examined?
At the bank's premises.
What is a bank employee's duty during inspection?
To provide the records, accounts and documents requested that are in his possession or under his authority, and to give the information he has relating to the bank.
More articles on The Agency's Supervision and Inspection
- Article 16
The article allows the Agency, after the Minister of Finance's approval, to set general rules on loan limits and types, dealing conditions, deposits, security ratios and assets kept in the Kingdom, and to set bank holidays and hours.
يجوز لمؤسسة النقد بعد موافقة وزير المالية والاقتصاد الوطني أن تضع قواعد عامة لتنظيم المسائل الآتية: 1 - الحد الأعلى لمجموع القروض التي يجوز لبنك أو أكثر تقديمها
- 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 19
The article prohibits anyone who obtains information during or on the occasion of work relating to applying the law from disclosing it or benefiting from it in any way.
يحظر على أي شخص يحصل على أية معلومات أثناء أو بمناسبة قيامه بأي عمل يتعلق بتطبيق أحكام هذا النظام إفشاؤها أو الإفادة منها بأية طريقة.
- Article 21
The article allows the Minister of Finance, in exceptional circumstances and after Council of Ministers approval, to exempt any bank from some provisions, decisions and rules of the law for a limited period and on conditions set for each case.
يجوز لوزير المالية والاقتصاد الوطني في أحوال استثنائية وبعد موافقة مجلس الوزراء أن يعفي أي بنك من بعض أحكام هذا النظام أو القرارات أو القواعد الصادرة تنفيذا له،
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.