Lawyers for Financial Institutions
We work with financial institutions across the Kingdom on contracts, compliance and disputes, with a practical grasp of how the sector actually operates.
Overview
Financial institutions operate under continuous rather than periodic supervision. The central bank and the Capital Market Authority monitor compliance in real time through reporting and inspection, and a violation in this sector is not resolved by a fine alone — it can extend to restricting the activity or the licence itself.
We work with banks, finance and insurance companies, brokerage firms and payment providers on licensing and activity expansion files, ongoing compliance and anti-money laundering, product documentation and customer contracts, financial data protection, and defence in regulatory investigations and violations.
What distinguishes work in this sector is that compliance is not a separate file but part of product design. A product built and then shown to compliance is usually rebuilt; a product that starts with the regulatory question reaches market faster despite the slower start.
The legal framework
Financial institutions are under direct supervision and specialised regimes:
- The Saudi Central Bank: licensing and supervision of banks, finance and insurance companies
- The Capital Market Authority: securities, brokerage and management activities
- The AML/CTF regime and know-your-customer requirements
- The Personal Data Protection Law in financial services
- The Essential Cybersecurity Controls for financial entities
- Disclosure and customer protection rules for financial institutions
Situations we handle
Licensing a new activity
Regulatory classification first: which authority and which licence category. The answer shapes the product itself, not just its procedures.
Updating the AML programme
The first thing examined in supervision, and weakness there stops the business rather than merely fining it.
Customer product documentation
Disclosures, fees and cancellation terms are subject to specific regulatory requirements, not marketing drafting.
A regulatory inspection or investigation
An organised, documented response within the deadlines shapes the outcome; improvising widens the scope of review.
A partnership with a fintech
The contract must allocate regulatory responsibilities clearly, because they do not transfer by agreement alone.
Costly mistakes we see
- 1
Building the product before classifying it
Classification can change the product fundamentally, and rebuilding costs far more than a prior assessment.
- 2
An out-of-date compliance programme
Requirements change, and a programme that was correct two years ago can be deficient today at inspection.
- 3
Non-compliant customer disclosures
Fees and terms not disclosed in the required form are among the most frequently detected customer protection issues.
- 4
Outsourcing compliance entirely
Regulatory responsibility remains with the institution whatever the contractual arrangement with the vendor.
How the procedure runs, step by step
Financial institutions operate under continuous supervision, not periodic audit. A breach here is measured by the missing procedure, not by the harm caused.
- 1
Match the activity to the licence scope
We review the SAMA or CMA licence against the services actually provided. Providing a service outside the scope is a breach in itself even where nobody was harmed.
- 2
Compliance and AML framework
We review KYC policies, ongoing screening, and suspicious transaction reporting. Failure to report is personal liability for the responsible officers, not the entity alone.
- 3
Governance and risk management
We review committee composition, the independence of the compliance function, and the risk management documentation. Compliance independence in form but not in fact is the first thing an examiner notices.
- 4
Customer protection and disclosure
We review fee and risk disclosure, contract clarity, and the complaints handling mechanism. Customer protection principles apply to marketing copy as well, not just to the contract.
- 5
Examination readiness and response
We maintain a standing examination file and manage the response to findings with a documented remediation plan. A repeat finding after a remediation plan is treated far more severely than the first.
Documents we will ask you for
- The licence, its conditions and service scope
- Compliance and AML policies
- Committee charters and governance documents
- Customer contracts and marketing copy
- The complaints register and handling procedures
- Earlier examination reports or findings
Fees and timelines
Ongoing advice is provided under an annual arrangement with an agreed scope, which is the model best suited to this sector. Licensing and expansion files are priced by stage. Investigation and violation files are priced separately according to stage.
On timing: reviewing a compliance programme takes two to four weeks. Licensing files run for months depending on the activity and the authority. Responses to regulatory observations are subject to short deadlines that we address immediately.
Common questions
Which authority licenses our activity?
It depends on the activity: banking, finance, insurance and payments generally sit with the central bank, while securities, brokerage and management activities sit with the Capital Market Authority. Some products combine both and need a composite route.
What are the AML requirements?
A documented compliance programme covering identity verification, due diligence, transaction monitoring, record keeping and suspicious transaction reporting, with periodic training and independent review.
How do we prepare for a regulatory inspection?
With a prior internal review identifying gaps, organised documentation, and a named owner for each file. An organised response within the deadlines narrows the observations; inconsistency widens them.
Can we launch a product before approval?
Not in activities requiring prior approval. Launching before the requirements are met is a violation in itself that can affect the licence, and it is not cured by contractual drafting.
What are our obligations towards customers?
Clear disclosure of fees and terms, an effective complaints mechanism, and protection of their data. These requirements are directly supervised and examined periodically, not only when a complaint arises.
How do we structure a fintech partnership?
With a contract allocating regulatory responsibilities clearly and setting audit rights, data access and the effects of termination. Responsibility to the regulator does not transfer by contractual agreement alone.
What are the financial data protection requirements?
The obligations of the data protection regime plus the cybersecurity controls specific to the financial sector. Compliance here is dual and is examined from two different angles.
Do you review vendor contracts?
Yes, particularly liability, security, data transfer, audit rights and service continuity. Regulatory responsibility remains with you whatever your arrangement with the vendor.
Related services
Banking & Finance Lawyers
We advise on financing, security and compliance, acting for both lenders and borrowers.
Fintech Lawyers
We help fintech companies with licensing, compliance and market entry.
Compliance Documentation Lawyers
We build the compliance policy set your organisation needs, drafted to be workable.