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The Financial Agency Agreement is essential for financial institutions operating in Saudi Arabia who wish to expand their service delivery through authorized agents. This document type is specifically designed to comply with Saudi Arabian law, including both Sharia principles and SAMA regulations. It establishes the legal framework for the appointment of financial agents, defining their authority to conduct specific financial services on behalf of the principal institution. The agreement covers crucial aspects such as regulatory compliance, risk management, operational procedures, and financial compensation structures. It's particularly important in the context of Saudi Arabia's growing financial sector and the increase in financial technology services, requiring careful attention to both traditional banking regulations and modern financial service delivery methods.

1. Parties: Identification of the Principal (financial institution) and the Agent, including their full legal names, registration details, and addresses

2. Background: Context of the agreement, including the Principal's business nature and intention to appoint the Agent

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation, including Sharia compliance terminology

4. Appointment and Scope: Formal appointment of the Agent and detailed scope of authorized activities

5. Term and Termination: Duration of the agreement and circumstances for termination

6. Agent's Duties and Responsibilities: Comprehensive list of Agent's obligations, including financial services to be provided and compliance requirements

7. Principal's Duties and Responsibilities: Principal's obligations including support, information, and resources to be provided to the Agent

8. Compensation and Payment Terms: Fee structure, payment mechanisms, and timing (structured to comply with Sharia principles)

9. Compliance Requirements: Obligations to comply with Saudi laws, SAMA regulations, and anti-money laundering requirements

10. Confidentiality: Provisions for protecting confidential information and customer data

11. Record Keeping and Reporting: Requirements for maintaining records and providing reports to the Principal

12. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority

13. Liability and Indemnification: Allocation of risks and responsibilities between parties

14. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for dispute resolution