SAMA fines Banque Saudi Fransi for employee incentives violations

Saudi Arabian Monetary Authority (SAMA), the Kingdom’s central bank, has fined Banque Saudi Fransi (BSF) for misuse of authority in a number of operations involving employees’ incentives over the past years, it said in a statement.

The value of the fines was not specified.

The central bank had recently sent inspectors to BSF to check if there had been employees’ incentives violations. It also held meetings with the lender's board of directors, and followed up with a number of corrective measures, the statement said.

SAMA said a detailed report was submitted to the competent authorities to take the necessary regulatory actions, while the bank will file lawsuits against some figures to redeem the unlawful payments.

SAMA had recently sent inspectors to the bank to check if there had been employees’ incentives violations. It also held meetings with the bank’s board of directors, and followed up with a number of corrective measures, the statement said.

The bank’s board of directors had appointed an independent team to conduct a thorough investigation into violations to hold those involved accountable, rectify the violations, and prevent future re-occurrence, SAMA said. 

BSF’s board said in a bourse statement that any redeemed payments will be recorded in the bank’s financial statement as additional earnings. However, as the earlier unlawful payments were recorded in the past financial statements, BSF expects no material change in financial results.