“Central”: In addition to restricting their powers and financial fines

Banks’ breach of “consumer protection” exposes them to the replacement of senior management members

The Central Bank's procedures and penalties reflect its keenness to oblige banks to comply with consumer protection standards.

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The Central Bank confirmed that the banks’ breach of any of the provisions and provisions of the Consumer Protection Law, which was recently issued, and the accompanying standards, requires the application of control measures, penalties and financial fines, explaining that these penalties may reach, under the powers of the “Central”, to the replacement of members of the senior management of the banks or the restriction of their powers. .

The Central Bank clarified that setting regulations and standards concerned with protecting consumers dealing with licensed financial institutions is one of the objectives and competencies entrusted to the bank by law.

He indicated that the purpose of the consumer protection system is to ensure the protection of consumers' interests when they use any financial product and/or financial service, or enter into a relationship with licensed financial institutions. The Central Bank added that the main objectives of the system are to protect consumers and contribute to stability. The overall financial services sector, pointing out that the system and supporting standards, enhance the culture of respect for consumers within licensed financial institutions, which seek to work to achieve the best interests of consumers.

This is the first time that a system issued by the Central Bank includes such procedures and penalties, which reflects the bank's keenness to obligate banks to consumer protection standards.

It is noteworthy that the “Central” specified in the consumer protection system all the standards and controls that banks and financial institutions must abide by towards their customers, in order to ensure their protection from any negative practices or dumping them in debt, and the system required the licensed financial institutions to be transparent with regard to the pricing structure and products and to prevent the adoption of misleading, deceptive, fraudulent or unfair advertising methods, as well as the use of misleading or incomplete information to promote the features of its products or services to suggest its uniqueness from other competitors.

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