Article 1 of the Saudi Central Bank Law

This is the definitions article of the Saudi Central Bank Law, and it explains the meaning of words that recur in its articles:

• The Bank: the Saudi Central Bank.
• The Law: the Bank's law.
• The Board: the Bank's board of directors.
• The Governor: the Bank's governor.
• Financial institution: any person subject to the Bank's supervision, oversight and regulation, whether a natural person (an individual) or a legal person (such as a company).

The most important of these definitions in practice is "financial institution"; it is not limited to commercial banks but covers anyone subject to the Bank's supervision, oversight and regulation. The test is being subject to the Bank's supervision, not the name of the activity or its legal form. The definition does not itself say who is subject to this supervision; that is known from the laws that place particular bodies under the Bank's supervision.

The word "Bank" in this Law means the Saudi Central Bank alone, not commercial banks. This article is followed by Article 2, which gives the Bank legal personality and financial and administrative independence, links it organizationally to the King, makes its head office the city of Riyadh, and allows it to set up branches or cash centers inside the Kingdom and open offices or appoint agents and correspondents outside it.

Anyone carrying on a financial activity who needs to know whether they are a financial institution subject to the Bank's supervision should consult a lawyer who specializes in banking and finance.