In force
Saudi Financial Control Law
نظام الرقابة المالية
Covers general provisions, definitions, methods of financial control (direct, self, digital and report-based control), the responsibility of the entity under financial control, the oversight bodies, financial controllers, violations and penalties, and final provisions. It replaces the Financial Representatives Law and takes effect 120 days after publication in the Official Gazette.
- Articles
- 29
- In force
- 29
- Amended
- 0
- Issued
- 10/6/1447 AH
Issued by: مرسوم ملكي رقم (م/122) وتاريخ 1447/6/10هـ · قرار مجلس الوزراء رقم (415) وتاريخ 1447/6/4هـ
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Financial Control Law by topic
Definitions and Scope of the Financial Control Law3 articlesMinistry of Finance Powers in Financial Control2 articlesMethods of Financial Control2 articlesDirect Control and the Financial Representative2 articlesSelf-Control by Government Entities3 articlesDigital Control and Report-Based Control2 articlesResponsibilities of the Controlled Entity2 articlesFinancial Controllers5 articlesViolations of the Financial Control Law and Penalties4 articlesFinal Provisions of the Financial Control Law4 articles
Articles of the Saudi Financial Control Law
الباب الأول: أحكام عامةArticles 1–4
- Article 1The Article defines the terms of the Financial Control Law, including government entity, oversight bodies, financial control, financial controller, the four control methods, and corrective actions.
- Article 2The Article sets the Law's objectives: strengthening responsibility, integrity, and transparency, organizing procedures, effective control, strengthening internal control, and integrating roles with the oversight bodies.
- Article 3The Article sets the Law's scope: government entities, and non-government entities that receive direct support from the State treasury, carry out works or purchases for a government entity, or collect public revenues.
- Article 4The Article sets the Ministry of Finance's competences under the Law: applying and following up financial control, approving its controls, proposing amendments to internal control regulations, setting corrective actions, and preparing observation reports.
الباب الثاني: أساليب الرقابة الماليةArticles 5–13
- Article 5The Article sets the four methods of applying financial control: direct control, self-control, digital (technical) control, and report-based control.
- Article 6The Article gives the Minister of Finance or his delegate the power to determine and change the financial control method for a government entity, allows combining more than one method, and refers the criteria to the Implementing Regulations.
- Article 7The Article provides that the Ministry of Finance exercises direct control over procedures and operations with a financial impact in the government entity to ensure compliance, without prejudice to the entity's duty to apply internal control systems.
- Article 8The Article regulates the financial representative in an entity under direct control: he approves disbursement on compliance, or on formal notice from the competent minister or the first official, with the Court of Audit notified within 30 days.
- Article 9The article sets out what the Ministry of Finance does to apply self-control in a government entity, such as assessing internal control, information and governance systems, and allows self-control to be applied partly or fully depending on the results.
- Article 10The article requires a government entity, when self-control is fully applied, to carry out the legal requirements assigned to the financial controller under the laws, regulations and instructions.
- Article 11The article requires the Ministry of Finance to support the application of self-control in government entities through appropriate support, guidance, instructions and responses to inquiries, in order to develop their internal control systems.
- Article 12The article provides that the Ministry of Finance applies digital control in a government entity by monitoring government resource systems, analyzing their data and examining their control measures, in cooperation with the bodies that regulate and operate these systems.
- Article 13The article regulates report-based control by requesting financial and control reports and related documents, and limits control over the non-government bodies in Article 3 to this method, within the limits of the related amounts and work.
الباب الثالث: مسؤولية الجهة الخاضعة للرقابة الماليةArticles 14–15
- Article 14The article obliges the entity subject to the Law to provide all necessary facilities to the financial controllers so that they can carry out their duties in accordance with the Law and the Implementing Regulations.
- Article 15The article sets out the responsibilities of the controlled entity: effective internal control, sound financial operations and use of public funds for their purpose, access for controllers, cooperation, awareness-raising, compliance, and responding to observations.
الباب الرابع: الجهات الرقابيةArticles 16–16
الباب الخامس: المراقبون الماليونArticles 17–21
- Article 17The article refers to the Implementing Regulations the conditions required of those appointed to financial control, without prejudice to the laws and regulations.
- Article 18The article makes financial controllers report to their control departments in the Ministry, guarantees their independence and objectivity, and prohibits interference in their work, subject to the Ministry's policies and regulations.
- Article 19The article requires the financial controller to exercise due professional care, maintain confidentiality and disclose conflicts of interest, and refers to the Implementing Regulations to set his duties and conduct.
- Article 20The article gives financial controllers the right to see confidential documents at the entity within the limits that enable them to do their work, and in accordance with the rules set by the Implementing Regulations.
- Article 21The article allows the Minister to grant an incentive reward to a financial controller who makes exceptional efforts that protect public funds, not exceeding 3 months' salaries a year, without prejudice to established benefits.
الباب السادس: المخالفات والجزاءاتArticles 22–25
- Article 22The article sets out the acts that are violations of the Financial Control Law: preventing controllers from access, giving incorrect information, failing to respond or stalling, and not applying priority corrective procedures.
- Article 23The article allows the Ministry of Finance, on discovering a violation of the Law or the Implementing Regulations, to ask the entity whose personnel committed it to draw up a record of the violation, and requires the entity to act immediately once notified.
- Article 24The article requires the entity, after a record of the violation is drawn up, to give the Ministry a report on the procedures and decisions taken, and to correct the violation or take what is necessary to approve it where appropriate.
- Article 25The article provides that investigation of the violations in Article 22 and imposition of the prescribed penalties are in accordance with the laws in force and the regulations applied in the violator's entity.
الباب السابع: أحكام ختاميةArticles 26–29
- Article 26The article requires the Minister of Finance to submit an annual report to the Prime Minister containing a summary of the financial control work.
- Article 27The article requires the Minister of Finance to issue the Implementing Regulations within 120 days of the Law's publication, to take effect from the date the Law takes effect, and allows him to issue the necessary decisions, instructions, guides and forms.
- Article 28The article provides that the Financial Control Law replaces the Law of Financial Representatives issued by Royal Decree No. M/85 dated 20/9/1380 AH.
- Article 29The article provides that the Financial Control Law takes effect 120 days after its publication in the Official Gazette.