Article 18 of the Saudi Insurance Control Law

This article sets out who carries out field supervision of how the law is applied. Its provisions:

• Who does the work: employees of the Saudi Central Bank, named by a decision of the Governor of the Central Bank.
• Nature of the work: inspection, supervision and enforcement in respect of violations of the provisions of the law or its Implementing Regulations.
• Regulating their work: the Implementing Regulations set their jurisdiction and rules of work.
• Role of the private sector: the Governor may assign the supporting technical work for inspection, supervision and enforcement to the private sector.

Note that what may be assigned to the private sector is only the supporting technical work; inspection, supervision and enforcement themselves are carried out by the named employees.

Amendment: by Royal Decree No. M/12 dated 23/1/1443 AH, the previous article that bore this number was deleted and this article was added in its current wording.

It is connected to Article 17, which requires companies to keep detailed accounts and records; these records are among the main things the employees examine. It is followed by Article 19, which sets the penalties and measures the Central Bank may take, including a fine, license cancellation, a warning and suspension of activities. Anyone found in violation should consult a lawyer specialized in insurance and financial-sector matters.