According to a statement issued by the Saudi Arabian Monetary Agency, today, linking the enforcement courts with the Monetary Agency ensures the accuracy of monitoring violators, expediting their trial, and imposing the penalties prescribed for them by law. This will ensure the protection of the economy and prevent the public from exploiting the needs of the public by financing them in informal ways.
The step will contribute to reducing the exploitation of debtors ’default by financing them in illegal ways that do not take into account the debtor’s credit standing and the extent of his ability to fulfill, in addition to imposing high burdens on him as a result of financing that is not subject to the control and supervision of the competent authority to monitor financing companies. This leads to the debtor’s inability to fulfill his obligations.
The controls according to the royal decree included: that in the event that the number of bonds for an order submitted by the applicant to the execution court reached a specified number within a year, and he was not authorized to engage in financing activity; It will be classified by the Saudi Arabian Monetary Agency as (under examination).
The execution court considers requests for the execution of the document for an order that classifies the applicant for its implementation as (under examination) after raising its classification, and in the event that the Saudi Arabian Monetary Agency, upon its study of the person designated (under examination), reaches the referral of the matter to the competent judicial authority; The classification status will continue until the matter is decided.
It is mentioned that Article (4) of the Finance Companies Control Law prohibits the practice of any of the financing activities specified in the system except after obtaining a license to do so in accordance with the provisions of this system, or other applicable regulations.
It is prohibited for any unauthorized person to use – by any means – evidence indicating the practice of financing activities specified in the system or what implies its meaning, or to use in his documents, papers, or advertisements any term or phrase corresponding to it, as specified in the second paragraph of Article (thirty-five) Punishment for violating the system, which includes the royal decree directing to take what is necessary to intensify those penalties, especially the imposition of imprisonment.
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