In brief
Restricts banking business to licensed institutions and sets licensing conditions, banks' obligations, the central bank's oversight and penalties.
Summary of the law
Key points
- No one may carry on banking business, including taking deposits from the public, without a licence; collecting people's money to invest without a licence is a serious breach.
- Article 23 sets the penalties, including up to two years' imprisonment and fines that vary by violation, some per day the violation continues.
A plain-language summary prepared by Al-Bayan Al-Wadih Law Firm, focused on the violations and problems that come up most in daily life. It is not a substitute for the official text or for legal advice.
What it covers
- Banking licence
- Banks' obligations
- Central bank oversight
- Penalties
Timeline
- Issued: Royal Decree M/5 · 22/2/1386H
- Amendments: Royal Decree M/2 · 6/1/1391H. Amendment to some articles (shown on the law's page at the Bureau of Experts)
Full record of amendments and regulations at the official source
Official text at the Bureau of Experts
The authoritative text is in Arabic; the Bureau of Experts publishes English translations for some laws.
Full official text
The full official text is in Arabic and is reproduced on the Arabic version of this page, as published by the Bureau of Experts at the Council of Ministers. Read the full Arabic text
Library content is simplified general information for awareness only. It is not legal advice and does not replace the official text. Laws change: always check the official source and consult a lawyer before acting. Library data last reviewed: .