Article 16 of the Saudi Central Bank Law

This article regulates conflicts of interest at the Central Bank, and distinguishes between a Board member and an employee:

First: a Board member (paragraph 1).

• What does he disclose? Any interest that conflicts with the performance of his duties, whether directly or indirectly.
• When? Before the first Board meeting, or when the interest arises.
• Effect: he is prohibited from taking part in the vote on matters that conflict with his interests.

Second: a Bank employee (paragraph 2).

• What does he disclose? Any direct interest that conflicts with the performance of his duties.
• Effect: in this case he is prohibited from taking part in decisions, procedures or giving an opinion on those matters.

The difference between the two paragraphs appears in two respects: the member discloses both direct and indirect interests, while for the employee the text mentions only a direct interest. Also, the prohibition on the member concerns voting, while the prohibition on the employee is wider, covering decisions, procedures and giving an opinion.

The article does not set the form of disclosure or the body to which it is made, or the consequence of failing to disclose.

It is preceded by Article 15, which protects Bank employees from liability for performing their duties under the Law, except in cases of bad faith or serious breach. It is followed by Article 17, which makes the Bank solely responsible for setting and implementing monetary policy, and choosing its instruments and operating procedures.