SAIB follows the:
International Financial Reporting Standards (IFRS) as modified by SAMA for the accounting of Zakat and Income Tax (relating to the application of International Accounting Standard (IAS) 12 “Income Taxes” and IFRIC 21 - “Levies” in so far as these relate to accounting for Saudi Arabian Zakat and Income Tax); and are in compliance with the provisions of the Banking Control Law, the Regulations for Companies in the Kingdom of Saudi Arabia and the Bank’s Articles of Association.
The Financial Statements for the year ended December 31, 2018 have been approved by the Directors to ensure that they present a true and fair view of the state of affairs of the Bank for the year under review.
Information technology plays a vital role in the Management and operations of the Bank. The cutting-edge technology we employ is a vital part of our competitive edge. All our IT development and operations are conducted in accordance with international standards and best practices. The IT strategy has been crafted to align with business strategy.
SAIB has a comprehensive IT Information Security Policy which is the bedrock of the Information Security Management System (ISMS). ISMS safeguards the Bank’s IT hardware and digital assets. It thereby also safeguards the interests of customers, investors, employees, and other stakeholders. A framework has been designed to restrict access to digital assets. All assets have a nominated owner and rules for access are well established. Access to data and facilities are on a “least privileged” and “need to know” basis. Critical sensitive facilities are housed in areas with appropriate security barriers and limitations to access. Procedures are in place to make swift and effective responses to any information security threats.
Ethics and standards
The Bank maintains the highest degree of ethical and professional standards which are governed by a code of conduct. This governs all commercial operations and practices. Through this code the Bank seeks to inculcate a culture of professionalism where the highest standards of ethics, integrity and respect for confidentiality prevail. The code applies to all Directors, employees, affiliates and any person who may represent the Bank. It provides a guide for making day-to-day decisions as well as strategic decisions. The governance exercised by the Board ensures the effective implementation of the Bank’s ethical standards and the Code of Conduct.
To strengthen assurance of ethical conduct we have a Whistle- blowing Policy in place where employees may report suspected cases of breaches of code of conduct, ethics, laws, regulations or procedures without any fear of reprisals. Such reporting may be done to the CEO or to the General Manager – Human Resources. The Bank also has a portal on its website where external parties may report any suspected irregularities.
The Management is responsible for establishing an adequate, effective, and efficient internal control system that will cover all operations of the Bank. The internal control system should include the policies, processes and procedures which are designed by or under the supervision of the Board to achieve the strategic objectives of the Bank and ensure smooth day-to-day operations. All significant findings related to the internal control systems are reported to the Audit Committee of the Bank. The Committee ensures that any shortcomings are corrected to ensure the smooth functioning of the Bank. All levels of the Bank are involved in the efforts to strengthen the internal control system. Each function, under the supervision of the Senior Manager is responsible for rectifying any identified deficiencies relating to the function. It is recognised that necessary controls may change with changing circumstances and review needs to be an ongoing and continuous process.
The testing and assessment of internal controls carried out during the year however, gave reassurance that the system has proved to be adequate and effective.