Article 4 of the Saudi Banking Control Law
المادة 4 من نظام مراقبة البنوك
The article keeps banking licenses and permits valid when the law took effect, with the Agency entitled to request documents and, with Council of Ministers approval, to require holders to meet Article 3.
Official text (Arabic)
This article has not been amended since the law was issued.
استثناء من أحكام المادة السابقة، يعمل بالتراخيص والتصاريح الصادرة للأشخاص الذين يزاولون الأعمال المصرفية في المملكة والسارية المفعول في تاريخ نفاذ هذا النظام. ومع ذلك يجوز للمؤسسة أن تطلب من هؤلاء الأشخاص أية مستندات أو بيانات تراها ضرورية، وأن تطلب منهم بعد موافقة مجلس الوزراء مراعاة كل أو بعض أحكام المادة الثالثة من هذا النظام في خلال المدة التي تحددها.
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 4 explained in plain English
This article deals with the position of those who were carrying on banking business in the Kingdom before the law took effect. It is an exception to Article 3, which requires submitting a new license application and meeting its conditions.
- The rule: the licenses and permits issued to these persons remain in force provided they were valid on the date the law took effect, so they need not obtain a new license merely because the law was issued.
- Power to request: the Agency may request from them any documents or data it considers necessary.
- Adjusting status: the Agency may, after the approval of the Council of Ministers, require them to comply with all or some of the provisions of Article 3 within the period it specifies. The provisions of Article 3 include, for a national bank, that it be a Saudi joint-stock company, that its paid-up capital be not less than two and a half million riyals paid in cash, the good reputation of its founders and board members, and the Minister's approval of its articles of incorporation and bylaws; for branches of foreign banks, the conditions set by the Council of Ministers.
The article balances respect for existing positions against enabling the supervisory authority to raise compliance gradually. It does not set a specific period for adjusting status, but leaves it to the Agency's discretion. To assess the position of a particular old license, it is advisable to 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 4 of the Saudi Banking Control Law
Did the Banking Control Law cancel banking licenses that preceded it?
No. Licenses and permits that were valid on the date the law took effect remain in force.
Can holders of old licenses be required to meet the conditions of Article 3?
Yes. The Agency may, after the approval of the Council of Ministers, require them to comply with all or some of the provisions of Article 3 within a period it specifies.
Does the article set a deadline for adjusting status?
No. The Agency sets the period, and the article states no specific period.
Articles this article refers to
More articles on Licensing Banking Business
- Article 2
The article prohibits anyone not licensed under the law from carrying on banking business as a principal activity in the Kingdom, with exceptions for entities licensed under another law and licensed money changers for currency exchange.
يحظر على أي شخص طبيعي أو اعتباري غير مرخص له طبقا لأحكام هذا النظام أن يزاول في المملكة أي عمل من الأعمال المصرفية بصفة أساسية، ومع ذلك: أ - يجوز للأشخاص الاعتب
- Article 3
The article provides that a banking license application is submitted to the Agency, sets conditions for licensing a national bank, refers conditions for foreign bank branches to the Council of Ministers, and has the license issued by the Minister of Finance after approval.
يقدم طلب منح الترخيص لمزاولة الأعمال المصرفية في المملكة إلى المؤسسة التي تقوم بعد حصولها على كافة البيانات الضرورية، بدراسة الطلب وتقديم توصياتها بشأنه لوزير ا
- Article 5
The article prohibits anyone not licensed for banking business from using the word "bank" or its synonyms or equivalents in any language in their papers, printed matter, trade name or advertising.
يحظر على أي شخص غير مرخص له بمزاولة الأعمال المصرفية في المملكة بصفة أساسية أن يستعمل كلمة (بنك) ومرادفاتها أو أي تعبير يماثلها في أية لغة سواء في أوراقه، أو مط
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.