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Ministry: Associations subject to high-efficiency governance standards
Published in The Saudi Gazette on 30 - 04 - 2020

The Ministry of Human Resources and Social Development has clarified that associations operating in the Kingdom of Saudi Arabia are subject to the State's laws and procedures, confirming that the Ministry oversees the conduct of associations' business and grants the necessary licenses according to a series of procedures and methods of governance.
The Ministry made this clarification in reference to what was being circulated recently in some media and social media about the existence of irregular associations aimed at collecting funds from donors without actually existing in reality.
The Ministry commended the active presence of private associations, their efforts in community development in various fields and providing services and supporting their beneficiaries, especially during this pandemic.
The Ministry also affirmed the pioneering role that associations, in various fields, play in the Kingdom in serving the community through their concerted efforts.
The Ministry lauded the generous support of the government of the Custodian of the Two Holy Mosques King Salman and Crown Prince Muhammad Bin Salman to carry out their duties to the fullest extent.
This valued support enabled the associations earn many praises from various specialized international organizations, particularly the European Union, on their efforts and services, the mechanism of governance, control, ensuring that their work is conducted properly and enacting legislation and regulations to account for any violation of regulations in force.
The Ministry said that it supervises more than 1,700 private associations and institutions and works to enable these associations to achieve greater accomplishment in accordance with the Kingdom's Vision 2030 in order to achieve community participation in providing services.
The Ministry also supervises administrative and financial aspects of associations and institutions after licensing them according to a framework of governance that organizes their activities and aims to evaluate them through field visits and periodic reports to verify the extent of their commitment to relevant regulations and standards.
It also audits the financial systems and lists of associations quarterly before auditing the financial statements that are issued at the end of the fiscal year.
The Ministry also confirms the existence of a high commitment to regulations including verifying the integrity of the records of members of the boards of directors, managers and accountants of those associations, as these procedures are one of the most important reasons that led to the high evaluation by the Financial Action Task Force (FATF) on the effectiveness of procedures and control of the non-profit sector. — SPA


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