300.1.5.8 Endowments and Bequests

No: 65681/67

Date(g): 3/7/2019 | Date(h): 1/11/1440

Status: In-Force

This rule has been amended according to the circular No. (41042946), Dated 19/06/1441H, corresponding to 13/02/2020G.

Without prejudice to Rules (300.1.1) and (300.1.3), bank accounts shall be opened in Saudi Riyal for endowments and bequests as follows:

1. Endowments:

a.	Endowments under the administration of the General Authority for Awqaf:
	1.	A letter by the Governor of the General Authority for Awqaf, requesting the opening of a bank account under the name of “Revenues’’ shall be submitted. The persons authorized to operate the account shall be identified, and dual authorization shall be applied. The financial powers of or right to delegate for the persons authorized must be specified.
	2.	Copies of the IDs of persons authorized to operate the account shall be submitted.
b.	Endowments not under the administration of the General Authority for Awqaf:
	1.	The bank shall receive a copy of the valid endowment registration certificate issued by the General Authority for Awqaf, including at minimum, the following: name of endowment, endowment deed number and date, and names of administrators and their ID numbers.
	2.	A copy of the legal deed of the endowment shall be submitted.
	3.	A letter from the authorized signatory under the endowment deed, specifying the persons authorized to operate the account, shall be submitted.
	4.	Copies of the IDs of persons authorized to operate the account shall be submitted.
	5.	Copies of the IDs of administrators whose names are stated in the endowment registration certificate shall be submitted.
	6.	No transactions (e.g. remittance, collection of checks, etc.) from the endowment accounts to any beneficiaries outside Saudi Arabia shall be made, except for transferring money for the purpose of managing the association’s activities. For example, remittance for paying fees of consulting services or of participation in external symposiums, conferences and the like may be made after the bank obtains the official approval therefor from the General Authority for Awqaf.
c.	Foreign endowments:
	1.	The bank shall receive a copy of the valid endowment registration certificate issued by the General Authority for Awqaf, including at minimum, the following: name of endowment, endowment deed number and date, and names of administrators and their ID numbers.
	2.	The bank shall receive a letter from the endowment administrator or agent (Saudi national), requesting the opening of a bank account. The letter shall be accompanied by a request from the authority responsible for endowments in the home country of the foreign endowment (or by a request from the ambassador of that country) and by the approval of the General Authority for Awqaf.
	3.	The bank shall receive a copy of the endowment’s legal deed stating that the property is allocated as Waqf (endowment) and registered with the competent authority in Saudi Arabia.
	4.	The bank shall receive a copy of the administration deed/power of attorney issued by the competent authority in Saudi Arabia, which provides for the full right to handle endowment and fulfill the donor's conditions. The administration deed does need to contain a provision for opening bank accounts, as the endowment administration includes this authority.
	5.	The bank shall receive a copy of the national ID of the endowment administrator/agent.
	6.	The bank account shall be in the name of the endowment as stated in the endowment deed and the registration certificate issued by the General Authority for Awqaf.
	7.	SAMA must be informed when the account is opened.
	8.	Withdrawal from this account shall be made by checks.
	9.	Transferring funds or issuing personal/bank checks from this account to beneficiaries outside Saudi Arabia shall not be allowed.
	10.	ATM cards and/or credit cards shall not be issued for such accounts.
	11.	Receiving remittances or checks from beneficiaries outside Saudi Arabia shall not be permitted without written approval from the General Authority for Awqaf.

2. Bequests:

1.	The bank shall receive a copy (or a certified copy) of the guardianship deed, which provides for the bequests.
2.	The bank shall receive a copy of the national ID of the trustee(s).
3.	The account shall be in the name of the bequest (Bequest of..).

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