The Saudi Central Bank (SAMA) has outlined changes to the electronic issuance of banking data and the practising of debt crowdfunding activities as part of its continued efforts to improve the quality and effectiveness of the country’s electronic and financial services.
SAMA has announced the issuance of the governing rules for electronic issuance and authenticity verification of banking documents. This move is to ensure the efficiency of obtaining bank documents and certificates and boost confidence in the authenticity of documents issued electronically.
The bank stated that the rules include the requirements that banks must observe before issuing bank documents. Additionally, banks are required to provide an E-document Verification service to electronically verify the authenticity of electronic and paper documents they issue. Moreover, the document must also state any available method to electronically verify its authenticity.
SAMA pointed out that the rules set out the minimum bank documents required to be issued electronically, which are the most requested by customers, such as bank certificates, debt certificates, and no liability letters. The rules shall be effective starting from 1 April 2022.
The comes at a time when the bank also announced that it has updated its rules for practising debt crowdfunding activities. Updating these rules follows a public consultation released earlier on the Public Consultation Platform.
This move aligns with SAMA’s continued efforts to develop the financial sector and to keep abreast of the recent development in the finance industry; as well as to support the emergence of a number of fintech companies.
The bank clarified that the updated rules aim to redefine the beneficiary to include all commercial establishments registered in the Kingdom of Saudi Arabia (KSA) that seek to obtain financing through the debt crowdfunding platform, adding the definition of aggregate accounts to ensure separation between the funds of the participants in the financing process and the funds of the crowdfunding facility.