Article 5 of the Saudi Banking Control Law
المادة 5 من نظام مراقبة البنوك
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 مطبوعاته، أو عنوانه التجاري أو اسمه أو في دعايته.
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 5 explained in plain English
This article protects the public from being misled; the word "bank" suggests a licensed and supervised entity, so the law restricts it to those licensed.
Whom does the prohibition cover? Any person not licensed to carry on banking business in the Kingdom as a principal activity, whether an individual or a company.
What is prohibited? Using:
- the word "bank" itself,
- or its synonyms,
- or any expression equivalent to it in any language,
and where? In papers, printed matter, the trade address, the name, or advertising and publicity.
It is not enough for a person to avoid the Arabic word; the prohibition covers its equivalent in other languages and every similar expression. The text turns on the license: a person not licensed to carry on banking business in the Kingdom as a principal activity may not use this word or its equivalents, and the article does not distinguish between one means of advertising and another.
Anyone choosing a trade name or mark for a financial activity who doubts whether the name falls within this prohibition should consult a lawyer specialized in banking and finance before registering or advertising.
Practical example
Fahd set up a financial consulting company in Dammam and wanted to name it "Financial Ideas Bank" and put the word Bank on its English logo. Since his company is not licensed to carry on banking business, he is prohibited from using the word "bank" or Bank in the name, logo or advertisements.
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 5 of the Saudi Banking Control Law
May a non-banking company use the word bank in its name?
No. A person not licensed to carry on banking business is prohibited from using the word bank and its synonyms in his name or trade address.
Does the prohibition cover the English word Bank?
Yes. The article covers any expression equivalent to the word bank in any language.
Is the prohibition limited to the trade name?
No. It also covers papers, printed matter and advertising.
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 4
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.
استثناء من أحكام المادة السابقة، يعمل بالتراخيص والتصاريح الصادرة للأشخاص الذين يزاولون الأعمال المصرفية في المملكة والسارية المفعول في تاريخ نفاذ هذا النظام. و
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.