Banque Saudi Fransi said its board of directors has appointed an independent team tasked to investigate employees' incentives violations and identify those responsible, Argaam reported Oct. 11.

The lender earlier received information revealing misuse of authority in certain operations involving employees' incentives in previous years, which led to illegal payments that breached the company's incentive program.

Banque Saudi Fransi said the incident is not expected to have a substantial impact on its financial statements, the report added.

The Saudi Arabian Monetary Authority said it will closely monitor measures taken by the lender to investigate potential inefficiencies in application of sound governance and monitoring policy, Argaam reported the same day.

Meanwhile, Banque Saudi Fransi senior executive director Mohamad Abdulhadi has retired and is leaving the bank, "sources familiar with the matter" told Reuters. The lender has yet to announce who will replace Abdulhadi, according to the report.