Article 36 of the Saudi Finance Companies Control Law
المادة 36 من نظام مراقبة شركات التمويل
The article gives companies and institutions that carried on finance in the Kingdom before the Law took effect a period of two years to regularize their positions in accordance with its provisions.
Official text (Arabic)
This article has not been amended since the law was issued.
تمنح الشركات والمؤسسات العاملة التي تزاول نشاط التمويل في المملكة قبل سريان هذا النظام مهلة سنتين لتسوية أوضاعها وفق أحكام هذا النظام.
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 36 explained in plain English
This is a transitional article that deals with the position of those who were carrying on finance before the Law began to apply.
It concerns operating companies and institutions that carried on finance activity in the Kingdom before this Law took effect, and gives them a period of two years to regularize their positions in accordance with the provisions of this Law.
The meaning is that these bodies were not required to comply immediately with all the provisions of the new Law but were given time to arrange their affairs to conform with it. The article does not specify the steps required in regularization, or what follows if it is not completed within the period.
This period is tied to the date the Law took effect; the article itself does not state precisely when the period starts.
It is preceded by Article 35, which provides penalties for violating the provisions of the Law and its Implementing Regulations, and followed by Article 37, which makes the Zakat and Income Authority the body that issues the criteria for calculating the zakat base of finance companies.
For any inquiry about the position of a body that existed before the Law, you can consult a lawyer who specializes 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 36 of the Saudi Finance Companies Control Law
Were bodies existing before the Law given a period to correct their positions?
Yes. Companies and institutions that carried on finance activity before the Law took effect were given a period of two years to regularize their positions in accordance with its provisions.
What is the transitional period in the Finance Companies Control Law?
Two years.
More articles on Definitions and Scope of the Finance Law
- Article 1
The article defines the main terms in the Finance Companies Control Law, such as finance company, beneficiary, consumer, license and finance.
يقصد بالألفاظ والعبارات الآتية - أينما وردت في هذا النظام - المعاني المبينة أمام كل منها، ما لم يقتضِ السياق خلاف ذلك: النظام : نظام مراقبة شركات التمويل. اللائ
- Article 2
The article sets the scope of application of the Law: it applies to finance companies licensed in accordance with its provisions.
يسري هذا النظام على شركات التمويل التي يرخص لها وفقاً لأحكامه.
- Article 3
The article requires licensed finance companies to carry on finance in a way that does not conflict with Islamic Sharia, according to Sharia committees they choose, and without prejudice to the soundness of the financial system and fairness of dealings.
تزاول الشركات - المرخص لها بموجب هذا النظام - أعمال التمويل بما لا يتعارض مع أحكام الشريعة الإسلامية، بناءً على ما تقرره لجان شرعية تختار أعضاءها تلك الشركات، و
- Article 37
The article makes the Zakat and Income Authority the body that issues the criteria needed to calculate the zakat base of finance companies.
تصدر مصلحة الزكاة والدخل المعايير اللازمة لاحتساب الوعاء الزكوي لشركات التمويل.
- Article 38
The article provides that the Finance Companies Control Law repeals whatever provisions conflict with it.
يلغي هذا النظام كل ما يتعارض معه من أحكام.
- Article 39
The article requires the Governor to issue the Implementing Regulations within ninety days of the date the Law was issued, to be applied after it takes effect.
يصدر المحافظ اللائحة خلال تسعين يوماً من تاريخ صدور النظام، ويعمل بها بعد نفاذه.
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.