The Saudi Arabian Monetary Agency has taken many measures and measures to protect citizens and residents from the risks of dealing with fake and unlicensed financial institutions in the Kingdom.
Some fictitious institutions seek to infiltrate the local market by denying financial institutions under various names such as funding agencies, financial intermediation or others to practice suspicious activities and promoting them through irregular advertisements and posters, websites, delegates, public services offices or individuals in exchange for receiving remunerative commissions, With the aim of fraud and illegal fund-raising.
The most common types of bodies that deny unlicensed financial
Finance companies or debt repayment
These companies exploit the individuals ’need for financing, especially those who do not have a good credit record or who have not been able to obtain financing from financial institutions licensed by the Saudi Arabian Monetary Agency.
These companies provide financing products in an illegal way, which may cause the customer to fall into a debt spiral that may not easily get out of them due to their high cost, in addition to legal accountability as a result of dealing with them and not being subject to financing systems that guarantee rights
[ Be immune to financial fraud ]
They are financial entities that carry out the installment activity without a license by the Ministry of Trade and Industry, and these companies exploit the need of individuals for some holdings and sell them to them by installments after imposing large profit margins that may double the amount of the debt, which may end up behind bars due to their inability to pay.
These companies never take into account the financial position of customers and their ability to purchase in installments and do not take into account their credit record and do not adhere to the regulations and laws specified by the relevant authorities, which ensure that the financial position of the customer is not harmed.
Brokerage and financial consulting firms
They are companies not listed with the Capital Market Authority, and they claim that they are investment consulting or financial intermediation companies that promote their activities by luring individuals to achieve additional income or large profits through trading or investing in currency or securities trading and others.
Its goal is to carry out fraud and fraud by exploiting the lack of knowledge of some individuals and their lack of knowledge of investment rules and their pursuit of rapid wealth.
Avoid the risks of dealing with unlicensed financial institutions
The Saudi Arabian Monetary Agency and the concerned authorities work to monitor and follow up developments related to this matter within the local market.
To prosecute unlicensed financial companies or institutions, close their offices, refer those responsible for them to the judiciary, and undertake awareness-raising campaigns about the risks that result from dealing with such institutions.
But individuals also have a major role to play in limiting the role of these institutions, which is to inform immediately about any entities that promote suspicious investment offers or when exposed to any kind of extortion or financial fraud and take the right decision by avoiding dealing with them under any circumstances.
Advice for dealing with financial institutions
Ensure the licenses and legality of financial institutions before dealing with them.
Not applying for any financing products and you are aware of your inability to pay.
Not investing in financial instruments if you are not familiar with them.
Failure to post-dated checks as a guarantee for sale by installments.
Read the terms and conditions of the finance or purchase contract or investment agreement carefully before signing.
Not to get dragged into glamorous ads without making sure of them.
The Saudi Arabian Monetary Agency and other concerned parties strive to protect and educate citizens and residents alike from fake and unlicensed financial institutions.
It is also the responsibility of individuals to protect themselves by distinguishing between the licensed and imaginary financier and permanent access to the instructions issued by the concerned authorities in this regard and cooperation with them.
The main goal is to protect them, protect their savings, and protect the national economy as a whole from the greed of these unknown entities.
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