300.1.1 Licensed Businesses and Shops
This rule has been respectively amended according to the circular No. (41042946), Dated 19/06/1441H, corresponding to 13/02/2020G ,and circular No. (42053614), Dated 02/08/1442H, corresponding to 15/03/2021G.The bank may open bank accounts for these licensed businesses and shops upon completing the following:
1. Obtaining a copy of the entity’s commercial register, or license if it is the only item required for practicing the entity's business without the need for a commercial register.
2. Verifying the identity of the owner of the entity against his/her name in the commercial register or license, and checking the information and validity of the owner’s ID.
3. Obtaining copies of the IDs of individuals authorized to mange and operate the accounts.
• If the owner of entity or shop is an endowment or private societies/foundations or cooperative associations, the bank must then request the following, in addition to the aforementioned requirements:
1. A copy of a valid endowment registration certificate issued by the General Authority of Awqaf, including at minimum the following: Name of endowment, endowment deed number and date, and names of administrators and their ID numbers (for endowments); or a copy of the license issued by the Ministry of Human Resources and Social Development, a copy of the decision of the board of directors of the society/foundation (meeting minutes) approving the establishment of the business, entity or shop, and the approval for the account’s authorized signatories (for private societies/foundations or cooperative associations).
2. Copies of the IDs of administrators whose names are stated in the endowment registration certificate (for endowments).
3. This type of accounts shall be classified as a high-risk account. 300.1.1.1 Special-Purpose Entities
The bank may open accounts for these special-purpose entities upon completing the following:
1. Obtaining a copy of the license of the special-purpose entity, issued by the Capital Market Authority (CMA).
2. Obtaining a copy of the license (if any) or commercial register of the owner, issued by the concerned authority.
3. Obtaining a copy of the entity’s articles of association.
4. Checking the IDs (for natural persons) and licenses or commercial registers (for juristic persons) of registered board members.
5. Obtaining a copy of the decision made by the authorized signatory in such entity, authorizing specific individuals to manage and operate the accounts.
6. Obtaining copies of the IDs of individuals authorized to mange and operate the accounts; and
7. Checking the IDs (for natural persons) and licenses or commercial registers (for juristic persons) of the special-purpose entity’s owners whose names are stated in its articles of association and amendments thereto.
300.1.1.2 Foreign Schools
The bank may open accounts for these resident foreign schools upon completing the following:
1. Receiving a letter from the board chairman or school principal, containing a request to open a bank account and the names of the account’s authorized signatories (a joint signature), along with copies of their IDs attached.
2. Receiving the approval of the Ministry of Education for opening the bank account and for the authorized signatories.
3. Obtaining a copy of the school’s license that is issued by the Ministry of Education.
4. Receiving a copy of the decision of forming the school board, approved by the Ministry of Education, and copies of members' Iqamas.
5. The account shall be valid for a period identical to the validity period of school license and the term specified for the school board as per its formation decision approved by the Ministry of Education.
6. The signatories shall be the school principal and its financial officer (who shall be employed in the same school), or one of them and a school board member, provided that such member is not a diplomat or an embassy employee. Such member may be from outside this school as an exemption from Paragraph (3) of Rule (4) of Chapter IV on the General Rules for Operation of Bank Accounts, regarding controls for authorizing non-Saudis.
7. Withdrawal from these accounts shall be as per dual control, and in case of withdrawal by checks, check shall be payable to the first beneficiary.
8. ATM cards or credit cards shall not be issued for such accounts.
300.1.1.3 E-Commerce Businesses with No Official Premises
This rule has been amended according to the circular No. (75357/67), Dated 27/12/1440H, corresponding to 28/08/2019G.The bank may open accounts for e-commerce businesses as per the requirements of Rule (300.1.1) on Licensed Businesses and Shops. The following shall also be observed:
1. The account name shall be as shown in the commercial register of the business, and the purpose of opening the account shall be “e-commerce”.
2. The e-platform of the business shall be as shown in the commercial register.
3. The national address of the entity or its owner shall be obtained.
4. This type of bank accounts shall be classified as of high risk and shall be updated every two years.
300.1.1.4 Freelance Job Permit Holder
The bank may open bank accounts for freelancers upon completing the following:
1. Obtaining a copy of the freelancer’s permit issued by the Ministry of Human Resources and Social Development.
2. Obtaining a copy of the national ID of the person holding the freelance job permit.
3. Obtaining the national address of the freelancer.
4. The bank account shall be in the name of the person holding the freelance job license. The work type stated in such license shall also be added to the name of the account.
5. The account shall be for one person only and shall not have signatories.
6. This type of accounts shall be classified as of high risk, and the purpose of opening such account shall be specified.
7. The account shall be valid for a period identical to the validity period of the freelance job license.