Saudi- Banks begin implementing SAMA's new rules

(MENAFN- Arab News) Saudi banking institutions have begun implementing 12 legal clauses imposed by the Saudi Arabian Monetary Agency (SAMA) following a grace period of three months. The clauses involve protecting clients from illegal practices during banking transactions and services. "Saudi banks have updated services and programs provided to customers to keep apace of the new rules imposed by SAMA," said banking sources. Banks have already sent out letters to the heads of their branches so that they comply with the new rules, which focus on transparency issues with clients. The sources confirmed that the new rules have not affected local banks in terms of costs. Some of these banks have trained in-house personnel in the skills needed to implement the new regulations. Skills involve offering credit counseling and advisory services on debt management, financing issues and credit cards. The credit councilor also educates clients on how to avoid financial liabilities. The rules will not be fully implemented this year. SAMA has postponed some banking services, including transferring accounts between local banks, to be implemented in January. Talat Zaki Hafiz, chief of the committee for Saudi banks, said that banks are committed to implementing the items listed within the new rules. "The list will regulate relations between banks and their clients," he said