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  • 5. Inoperative Accounts

    This rule has been respectively amended according to the circular No. (44071426), Dated 07/09/1444H, corresponding to 28/03/2023G, and circular No. (46015210), Dated 06/03/1446H, corresponding to 09/09/2024G.

    Accounts, relationships and transactions shall be considered non-moving after two calendar years from the date of the last financial transaction carried out by the customer, his/her authorized representative, or his/her heirs. Inoperative accounts are divided into three types as described in this Rule. The purpose of this Rule is to keep accounts active, save the customer assets (money) that have not been used for a financial transaction (withdrawal or deposit – depending on the nature of the relationship), recorded debit transactions, or documented correspondences during the period specified in Article (5.2). The Rule also supports communicating with customers, returning the rights to their owners upon request immediately after the completion of documents and necessary procedures, changing account status to abandoned if banks are unable to reach the account holder after using all methods of contact. Accounts of government entities shall be excluded from the provisions of this Rule in respect of the phase of abandoned accounts only as set forth in paragraph (5.2.4), and the bank accounts for enforcement courts that are established for the purpose of collecting enforcement amounts are excluded from all three stages of classification outlined in Article (5.2). Accounts of statutory reserve deposited by financial institutions supervised by SAMA, whose balances are not allowed to be disposed of without prior written permission from SAMA, shall also be excluded from the provisions of this Rule.

    • 5.1 Transactions Subject to this Rule

      This Rule applies to all assets (accounts, banking relationships, transactions, etc.) in cash and in-kind for natural and juristic persons which are deposited in banks operating in Saudi Arabia. Such assets include the following: 
       
      1.Inoperative current and saving accounts on which no financial transaction (withdrawal or deposit) has been carried out by the customer, his/her authorized representative, or his/her heirs*.
       
      2.Automatically renewed investment deposits whose owners do not visit the bank after the completion of the agreed-upon period and cannot be reached by the bank.
       
      3.Bank transfers (SARIE, Swift, remittance membership, etc.) that have not been settled, deducted or received from the date they are made.
       
      4.Shares, bonds and title deeds of properties pledged against banking facilities that are fully paid by their owners, but they do not contact the bank to regain their ownership.
       
      5.Safe deposit boxes (lockers) rented by banks to customers with contracts that have not been renewed from the date of the customer’s last visit, and banks were unable to reach the owners by using direct contact or other methods of contact or checking the customer’s other accounts and information in the bank. SAMA instructions on safe deposit boxes shall be applicable.
       
      6.Unpaid amounts and profits due to customers on their investments in different types of investment funds managed, or was managed, or held by the bank for customers whose investment periods have expired and their owners have not received the amounts due because they do not visit the bank to receive such amounts and profits, they do not have active accounts for the bank to deposit such amounts and profits, or they can not be reached by the bank after they have been notified in writing.
       
      7.Prepaid services accounts, in a way that does not conflict with the Regulatory Rules for the Prepaid Payment Services.
       
      8.Amounts on credit cards that are not used or claimed by customers.
       
      9.Leasing finance settlement accounts.
       
      10.Amounts held against letters of guarantee and letters of credit as of their expiry date.
       
      11.Other amounts due to customers and the accruals related thereof.
       

      * This paragraph has been amended according to the circular No. (44071426), Dated 07/09/1444H, corresponding to 28/03/2023G. Please refer to the Arabic version of this paragraph to read the last updated version.

    • 5.2 Durations, Periods and Requirements for Dealing with Inoperative Accounts

      • 5.2.1 Active Accounts

        This rule has been amended according to the circular No. (44071426), Dated 07/09/1444H, corresponding to 28/03/2023G. Please refer to the Arabic version of this rule to read the last updated version.

        Accounts shall be considered active if no more than (24) calendar months have passed since the last recorded financial transaction (withdrawal or deposit, depending on the nature of the relationship) carried out by the customer, his/her authorized representative, or his/her heirs, or since the last reliable and documented correspondence.

      • 5.2.2 Dormant Accounts

        This rule has been amended according to the circular No. (44071426), Dated 07/09/1444H, corresponding to 28/03/2023G. Please refer to the Arabic version of this rule to read the last updated version.

        Accounts shall be considered dormant after completing (24) calendar months from the date of the last recorded financial transaction (withdrawal or deposit, depending on the nature of the relationship) carried out by the customer, his/her authorized representative, or his/her heirs, or the last reliable and documented correspondence.

        Requirements for dealing with dormant accounts:

        -Activation of dormant accounts shall be subject to double supervision with higher authority, one of which includes the branch manager or the branch operation manager.
         
        -Withdrawal and transfer transactions on a dormant account shall only be accepted in the presence of the customer (natural person), the customer’s legal agent holding a deed allowing him/her to operate the account, the agent of the customer’s heirs or the person authorized to operate the account if the account is for a juristic person. As an exception, fax number or e-mail address registered in the bank records shall be accepted. In addition, carrying out financial transactions using electronic services, such as online services and phone banking, shall also be accepted. The status of the account and the nature of the executed transaction shall be clear to the customer.
         
        -Dormant accounts shall be allowed to accept all deposits, domestic and international transfers and dividends made by another person other than the account holder. The account status shall not be changed from dormant to active due to carrying out such transactions.
         
        -This shall be applied to all customers, including those who have other active accounts. Banks are required to contact customers and inform them of the action to be taken on his/her account before completing five years if such customers have other active accounts. Customers shall also be asked to activate the account by carrying out a transaction. If the account is not activated during the specified period, the requirements of unclaimed accounts shall be applied.
         

      • 5.2.3 Unclaimed Accounts

        This rule has been amended according to the circular No. (44071426), Dated 07/09/1444H, corresponding to 28/03/2023G. Please refer to the Arabic version of this rule to read the last updated version.

        Accounts shall be considered unclaimed after completing five years (60 months), including the dormant phase, from the date of the last recorded financial transaction (withdrawal or deposit, depending on the nature of the relationship) carried out by the customer, his/her authorized representative, or his/her heirs, or the last reliable and documented correspondence, and the bank becoming unable to reach the customer after using all methods of contact.

        Requirements for dealing with unclaimed accounts:

        -Banks shall transfer the balance of the account within the month following the five-year period to the bank’s suspense account created for unclaimed accounts.
         
        -Such accounts shall be classified in the suspense account to be easy to deal with and manage according to the different communication policies and procedures and supervision aspects.
         
        -Unclaimed accounts shall be allowed to accept all deposits, domestic and international transfers and dividends made by another person other than the account holder.
         
        -Banks shall completely conceal the customer signature and balance from the branch screens during this phase. Supervision on such accounts shall be limited to the Head Office.
         
        -If the customer visits the bank to activate the account or withdraw the balance, the customer may open a new account to which the outstanding balance in the bank’s records can be transferred, or may receive the balance by check or bank transfer after confirming the identity of the customer; legal agent; the agent of the customer’s heirs or the person authorized to manage and operate the account (as the case may be).
         
        -Banks shall establish policies and procedures to ensure double supervision over the files of such accounts, with a supervision level higher than that applied to the other files. Banks shall also save such files separately from the other files and provide the necessary safety tools to protect the files from recordkeeping risks.
         
        -Balances of such accounts shall be recorded as liabilities in the bank balance sheet. Banks shall not take any action regarding the balances regardless of the balance limit, the subsequent period and the account type.
         
        -Outstanding debt obligations on such accounts shall be deducted before transferring the balance to the suspense account.
         
        -The bank may close customer accounts whose balances are equal to (1,000) riyals and less, provided that the customer is notified a month prior to the date of closing, and notifies him when closing, document the notices and save them in his file. The bank must keep all the data of these customers and the amounts of their balances in the combined account; to hand it over to them when they go back to the bank.
         

      • 5.2.4 Abandoned Accounts

        Accounts shall be considered abandoned after completing the periods specified in this paragraph from the date of classifying the accounts as unclaimed, and the banks becoming unable to reach the customer after observing the account movements and his/her other transactions with the bank and using all methods of contact according to the communication policies and procedures provided in the Rules. The periods of such accounts shall be as follows: 
         
        -Unclaimed for a period of ten years (total of 15 years as of the last transaction) for current accounts, saving accounts, investment deposits, balances of deceased persons and credit amounts in credit cards.
         
        -Unclaimed for a period of five years (total of ten years as of the last transaction) for bank transfers, safe deposit boxes, retained earnings, unpaid amounts and profits due to customers on their investments, shares; bonds and title deeds of properties pledged against banking facilities that are fully paid by their owners, but they do not contact the bank to regain their ownership, amounts held against letters of guarantee and letters of credit as of their expiry date, leasing finance settlement accounts, prepaid services accounts, and other amounts due to customers and the accruals related thereof
         

        Requirements for dealing with abandoned accounts:

        -Banks shall change the account status to abandoned within the month following the completion of the periods specified.
         
        -Such accounts shall be under direct supervision of an authorized official from the bank senior management.
         

    • 5.3 General Requirements

      For inoperative accounts: 
       
      a.Account commissions and profits shall continue to be calculated as agreed upon or at market rates.
       
      b.Accounts shall be checked and classified and the procedures stipulated in the Rules thereon shall be taken according to the periods specified for each.
       
      c.Copies of documents and records of all the amounts and dues shall be kept as per the regulatory period of record-keeping.
       
      d.Detailed records of accounts shall be kept. Such records must include, as a minimum, the following:
       
       -Customer full name as shown in the identification document.
       
       -Customer ID number as shown in bank records.
       
       -Amount of assets and time periods related thereto.
       
       -Nature of customer assets (current accounts, investment deposits, remittances, etc.).
       
       -The national address, residence address and contact numbers, if any.
       
       -Bank account number, relationship number or the serial number in safe records, if any.
       
       -Ownership certificate numbers, if any or relevant.
       
       -Any other data about the customer, if available or necessary.
       
      e.Personal and financial data shall be kept by the bank in electronic records according to the technical specifications set by SAMA for easy future reference. A copy of such data shall be submitted to SAMA.
       
      f.Provisions containing the periods and procedures for freezing accounts and other funds mentioned in these Rules shall be added to contracts, agreements, account opening forms signed by customers, as well as account statements sent to customers.
       
      g.The role of the compliance department shall be supervisory at all phases and periods stated to ensure the fulfillment of the requirements of such accounts. In addition, rights shall be returned by the bank operation department.
       

    • 5.4 Communication Policy and Procedures for Inoperative Account Holders

      • 5.4.1 The Communication Policy and Procedures Shall Be Implemented in Accordance with the Customer Classification and Legal Nature, as a Minimum, as Follows

        -Resident natural persons, including Saudis, GCC nationals, expatriates and politically exposed persons residing in Saudi Arabia.
         
        -Non-resident natural persons, including Saudis, GCC nationals and foreigners not residing in Saudi Arabia, including those who leave Saudi Arabia and still have balances in their accounts.
         
        -Resident juristic persons.
         
        -Non-resident juristic persons.
         
        -Commercial banks, including international accounts.
         
        -Correspondent banks.
         
        -Accounts of government entities.
         

      • 5.4.2 Methods of Contact

        Banks shall communicate with and try to reach customers, without disclosing any financial data, in all time periods specified by all possible legal means, for example: 
         
        -SMS.
         
        -Email.
         
        -Available phone numbers.
         
        -Official letter sent by the mail to customers inside and outside Saudi Arabia.
         
        -On-site visits by the bank relation staff.
         
        -Messages on bank statements showing the account status and the actions required from the customer.
         
        -Available public search tools and official information centers that help reaching customers by providing banks with the customer new contact numbers not registered with the bank, or informing banks of the customer status if alive, left Saudi Arabia, or if his/her business and financial activity was terminated.
         
        -Media awareness advertisements explaining the relevant regulations, the actions required from dormant account holders, and balance search procedures.
         
        -Inquiries to competent official authorities.
         
        -Banks shall communicate with customers using the above mentioned methods during the different phases of inoperative accounts at intervals. Therefore, customers shall be contacted, at least, two times during each phase. If the customer is not responding and cannot be reached, banks shall stop communication a year after each stage and document the methods of contact used.
         

      • 5.4.3 Bank Communication Unit

        Banks shall establish a unit (formally established or defined) to implement the communication policy effectively. The tasks of the unit shall include implementing communication procedures and documentation, taking all related responsibilities and preparing periodic reports on communication and the results thereof.

      • 5.4.4 Stages and Steps of Implementing Communication Policy and Procedures for Inoperative Account Holders

        Banks shall comply with the following when communicating with customers according to each phase:

        a.Dormant accounts:
         
        -Banks shall inform customers, using their preferred methods of contact, of their account status, the required actions, and the procedure that will be taken by the bank in case customers fail to cooperate, including changing the account status to unclaimed.
         
        -Government entities and private associations shall be officially informed, a year before changing the account status from dormant to unclaimed, without prejudice to the provisions of paragraph (4.2), of the procedures to be taken if there are no transactions in the account.
         
        -Embassies, consulates, their educational institutions, and resident diplomats shall be officially informed, a year before changing the account status from dormant to unclaimed, of the procedures to be taken if there are no transactions in the account.
         
        b.Unclaimed accounts:
         
        -A bank check shall be issued with the unclaimed account balance of the government entity to the Ministry of Finance's account with SAMA. The check shall be sent to SAMA under an official letter and a copy of the check to the government entity and the Deputy Ministry for Financial and Accounts Affairs.
         
        -Banks shall inform customers, using the preferred methods of contact based on the results of communication in the previous phase, of the unclaimed account status and that they are required to contact the bank to receive the balance and open alternative new accounts.
         
        -A bank check shall be sent to embassies, consulates and their educational institutions with the account balance. Such procedure shall be documented.
         
        c.Abandoned accounts:
         
        -Banks shall inform customers, using the preferred methods of contact based on the results of communication in the previous phase, of the abandoned account status.
         

    • 5.5 Internal Audit Control and Reports

      Unclaimed and abandoned accounts shall be subject to the internal audit program once every two years, as a maximum. In addition, audit reports shall be submitted to the Audit Committee and the annual audit program shall not be linked to any other periodic programs related to such accounts.

    • 5.6 Annual Statistical Reports Required by SAMA

      Banks shall submit an annual report to SAMA at the end of March in accordance with the schedule sent by SAMA. The report shall cover all unclaimed and abandoned accounts, including the nature, type and number of the account as of the end of December of the previous year, without disclosing any personal information.