ATM Instructions
No: 46010824 Date(g): 23/8/2024 | Date(h): 18/2/1446 Status: In-Force Translated Document
Based on the powers granted to SAMA under its Law issued by Royal Decree No. (M/36) dated 11/04/1442H, and the Banking Control Law issued by Royal Decree No. (M/5) dated 22/02/1386H, and in line with SAMA's efforts to establish a regulatory and supervisory framework for ATM licensing.
Attached are the ATM Instructions, which aim to encourage the geographical distribution of the ATM network to ensure coverage in all areas, in addition to establishing a supervisory framework for the licensing and license cancellation of ATMs.
For your information and action accordingly as of this date. Please note that these instructions replace SAMA's previous instructions regarding the licensing and license cancellation of ATMs as outlined in earlier circulars.
1. Introduction
SAMA issued these instructions within the framework of exercising its powers granted under the Saudi Central Bank Law issued by Royal Decree No. (M/36) dated 11/04/1442H, and the Banking Control Law issued by Royal Decree No. (M/5) dated 22/02/1386H. These instructions specify the procedures governing ATMs located outside the branches of banks. The objectives of these instructions are as follows:
1.1 Encouraging the geographical distribution of the ATM network and ensuring its coverage across all regions.
1.2 Establishing a supervisory framework for the licensing and cancellation of licenses for ATMs.
2. Scope of Application
These instructions apply to all local banks, and branches of foreign banks licensed within the Kingdom of Saudi Arabia, with the exception of ATMs associated with branch licenses.
3. Definitions
The following terms and phrases, whenever they occur in these instructions, shall have the meanings assigned thereto unless the context requires otherwise:
Term Definition SAMA Saudi Central Bank.
Instructions Instructions for ATMs Located Outside Bank Branches.
Bank The bank licensed to conduct banking activities in the Kingdom in accordance with the provisions of the Banking Control Law.
Branches Comprehensive branches that provide a full range of banking services, as well as other branch models that offer basic banking services, including account openings, cash deposits, cash withdrawals, money transfers, and others.
ATMs associated with branch licenses ATMs located within the bank branch premises, subject to its license, providing cash withdrawals and/or cash deposits, as well as other services such as balance inquiries, mini-statements, bill payments, money transfers, and others.
ATMs ATMs located outside the bank branch premises, operating under separate licenses independent of the branch licenses, providing cash withdrawals, as well as other services such as balance inquiries, mini-statements, bill payments, money transfers, and others.
Cash Acceptance Machines Cash Acceptance Machines located outside the bank branch premises, operating under separate licenses independent of the branch licenses, and providing cash deposit services exclusively for certain corporate bank customers.
Drive-Thru ATM ATMs located outside the bank branch premises, operating under separate licenses independent of the branch licenses, and providing cash withdrawal services as well as other banking services through vehicle-mounted ATMs.
Shumul A Geographic Information System managed by SAMA, allowing member banks to input the locations of their ATMs along with their full data.
4. ATM Licensing
It is required to meet the following conditions for granting a license for new ATMs:
4.1 The bank must submit all its applications for ATM licenses through SAMANet.
4.2 The bank applying for a new ATM license must attach the following documents with its application:
4.2.1 The location coordinates in decimal degree format as follows: (Longitude 46.454109, Latitude 25.353898).
4.2.2 A copy of the signed contract between the bank and the property owner/tenant.
4.2.3 Clear photographs of the site from all directions (at least four photographs), with the following considerations:
4.2.3.1 Photograph quality.
4.2.3.2 The necessity of photographing from all angles of the site.
4.2.3.3 Provide a photograph of the entire site.
4.3 Any other documents requested by SAMA.
4.4 In case of applying for a license for a drive-thru ATM, the bank must attach a copy of the building permit or the approved architectural plans from the municipality or the local authority within whose jurisdiction the device is located.
4.5 The bank's application, once submitted, is subject to review by SAMA for approval.
4.6 The license is valid for a period of nine months, starting from the issuance of SAMA's approval, and can be extended for an additional three months with the approval of SAMA, upon a request submitted by the bank through SamaNet, outlining the reasons for the extension.
4.7 After obtaining the approval, the bank must add the ATM location and all of its details to the "Shumul" system.
4.8 The bank must notify SAMA through SAMANet of the activation of the ATM, within five business days of its activation.
4.9 The bank must comply with the Financial Sector Security and Safety Guide for the Kingdom, issued in 1441H, and any updates thereto, for all existing and new ATM locations.
4.10 The bank must provide SAMA with the annual plans for the installation and deactivation of ATMs in October of each year. The plans should include the strategy for presence in the holy sites during the Hajj and Umrah seasons, whether for permanent or temporary locations.
5. ATM Cancellation
5.1 Request for ATM Cancellation
5.1.1 The bank must submit requests for the cancellation of ATM licenses by completing the ATM Cancellation Request Form (Appendix 1) and sending it to SAMA. 5.1.2 The bank must provide the following in the cancellation request:
5.2.1.1 The current site details, including a copy of the license showing its number and date.
5.2.1.2 Attach the justification for the cancellation request.
5.2.1.3 Photographs of the site where the device is to be canceled.
5.2.1.4 Identify the area where the device to be canceled is located (Appendix 1).
5.2 Review of Cancellation Request
The request will be reviewed based on the specified cancellation requirements, which include:
5.2.1 The accessibility of ATMs in the area mentioned in the request.
5.2.2 The ratio of the bank's current ATMs to its customers.
5.2.3 The reason for the cancellation.
5.2.4 The distance between the ATM to be cancelled and other ATMs of the bank.
5.2.5 ATM usage rate.
If the ATM mentioned in the request meets the specified requirements for cancellation, SAMA will provide its non-objection to the bank for deactivating the ATM. Based on SAMA's non-objection to the cancellation request, the bank must remove all the ATM data, including the license number, date, and site coordinates, from the "Shumul" system within three working days. The bank must also remove the cancelled ATM from the site and disconnect all associated devices.
6. Replacement of ATM
To obtain the approval of SAMA for the cancellation of an ATM that does not meet the cancellation requirements, the bank must provide a replacement ATM in the same area within a specified distance, in accordance with the following requirements for ATM replacement:
6.1 The bank's commitment to installing a replacement ATM in the same governorate and within a specified distance (Appendix 2).
6.2 The bank must notify SAMA upon the installation and activation of the replacement ATM within the specified time frame.
6.3 If the bank is unable to adhere to the specified timeframes, SAMA will not accept any further cancellation requests until the bank fulfills its obligation to install a replacement ATM.
7. Communication with Customers
The bank must adhere to the following:
7.1 Update the details of ATM locations on their websites (internet and mobile devices).
7.2 Place an identification card on the ATM that includes the ATM number and contact information in both Arabic and English for customers.
7.3 Each ATM must clearly display all types of accepted cards.
8. Reporting Requirements
The bank must submit the following data to SAMA, using the required forms (Appendix 3).
8.1 The data on the "Shumul" system must reflect the actual status of the ATMs at all times.
8.2 Submitting monthly reports on newly installed, cancelled, and replaced ATMs (within five days after the end of each month). 9. Implementation of the Instructions
These instructions shall be effective from the date of their issuance.
10. Appendices
10.1 Appendix 1: ATM Cancellation Request Form
10.2 Appendix 2:
10.2.1 Criteria for the Defined Distance for Replacing ATMs*
Area Distance Criteria Area 1 Within a 5 km radius Area 2 Area 3 Within a 10 km radius Area 4 Area 5 Within a 15 km radius 2.2.10 Area Classification
Area Population range Area 1 A population of more than one million Area 2 More than half a million to one million population Area 3 More than 100,000 to half a million population Area 4 From 20,000 to 100,000 population Area 5 Less than 20,000 population * It is subject to the exceptional approval of SAMA.
10.3 Appendix (3): Reporting Requirements
