SAMA announces the launch of nonbank licenses

• These guidelines will also allow SAMA to fulfill its mandate in regulating the payments sector and keeping up with international best practices

JEDDAH: The Saudi Arabian Monetary Authority (SAMA) has announced the launch of licenses for nonbank financial institutions (financial technology institutions).
SAMA has licensed the Saudi Digital Payments Company (STCPay) as an electronic wallet company, and GEIDEA Technology Company as a payment services company.
It follows the success of a trial period.
The announcement comes as part of SAMA’s efforts to achieve the objectives of the financial sector development program, which is one of the pillars of the Kingdom’s 2030 Vision, in enabling financial institutions to support private sector growth by opening financial services to non-banking actors (payment services providers and financial technologies) supporting development of the national economy.
The authority had published the draft regulations on its website for public consultation, as the public’s views were taken into consideration to serve the interests of the sector.
These guidelines will also allow SAMA to fulfill its mandate in regulating the payments sector and keeping up with international best practices.
That is based on SAMA’s mandate to license, control, and oversee the payments sector in the Kingdom, arising from the Council of Ministers Resolution No. 226 dated Oct. 14, 2018.
These guidelines enable the licensing of payment companies and regulate payment services in Saudi Arabia through a supervisory framework that ensures the safety and efficiency of transactions in the payments sector.
This is being done while maintaining a level playing field and helping to maintain financial sector stability.
The guidelines included the minimum requirements for undertaking any payment services such as minimum capital requirements based on the nature of their functions, data protection, governance and risk management requirements.