The Saudi Central Bank (SAMA) announces the issuance of the “Rules for Regulating Buy Now Pay Later (BNPL) Companies,” as part of its role in supervising and controlling the BNPL companies.
This decision reflects SAMA’s continuous efforts to develop the financial sector as a whole and empower the Fintech sector in particular.
Under these rules, the (BNPL) activity is defined as “a type of financing that allows a consumer to purchase goods or services without a term cost payable by the consumer.”
The rules aim to regulate the licensing of the (BNPL) companies and set minimum standards and procedures required to offer (BNPL) services. Additionally, the development of these rules will contribute to the growth and sustainability of the sector while safeguarding consumers’ rights.
The rules include various provisions related to licensing requirements, internal regulatory measures such as internal policies and procedures, information security standards and measures to combating financial crimes. Additionally, regulatory obligations designed to safeguard consumers, and establish boundaries for activities and credit, as well as provisions pertaining to supervision and compliance were included in the new rules.
The draft rules were published earlier for public consultation, where relevant suggestions and observations were considered in the final version.
To view the rules, visit SAMA’s website.
Featured image credit: Edited from freepik
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