Article 21 of the Saudi Banking Control Law
المادة 21 من نظام مراقبة البنوك
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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، وذلك لمدة محدودة وبالشروط التي تحدد في كل حالة على حدة.
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 21 explained in plain English
This article adds a degree of flexibility to the law to meet unusual circumstances, but surrounds it with clear restrictions:
- Who has the power: the Minister of Finance and National Economy.
- Approval required: after the approval of the Council of Ministers, so the Minister does not decide alone.
- The occasion: only in exceptional circumstances.
- Scope of the exemption: some provisions of the law or the decisions or rules issued under it, not all of them.
- Duration: for a limited period, so the exemption is not permanent.
- Conditions: set in each case separately.
An exemption is issued to a particular bank by a special decision, and may not become a general rule that repeals the provisions of the law. The exemption covers the rules and decisions issued under the law.
The article does not say what counts as an "exceptional circumstance", or set a maximum period for the exemption, but leaves both to the discretion of the competent authorities. To understand the effect of a particular exemption on those dealing with the bank, 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 21 of the Saudi Banking Control Law
Can a bank be exempted from the provisions of the Banking Control Law?
Yes. The Minister of Finance may, in exceptional circumstances and after Council of Ministers approval, exempt any bank from some provisions.
Is the exemption permanent?
No. It is for a limited period and on conditions set in each case separately.
Does the exemption cover all provisions of the law?
No. The text speaks of exemption from some provisions or decisions or rules issued under the law.
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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.
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.