300.1 Resident Juristic Persons (Including Embassies and Multilateral Organizations)
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.
300.1.2 Licensed Money Changers
The bank may open accounts for licensed money changers upon completing the following:
1. Copies of licenses issued by SAMA shall be obtained. The account shall be valid for a period identical to the validity period of the license issued by SAMA.
2. A copy of the commercial register shall be obtained.
3. The bank shall verify the information contained in the commercial register or in the license issued by SAMA matches the information contained in the owner’s ID card.
4. A copy of the owner’s ID shall be obtained.
5. Copies of the IDs of individuals authorized to mange and operate the accounts shall be obtained.
300.1.3 Resident Companies
This rule has been respectively amended according to the circulars No. (41042946), Dated 19/06/1441H, corresponding to 13/02/2020G, circular No. (42053614), Dated 02/08/1442H, corresponding to 15/03/2021G, and circular No. (44061480), Dated 28/07/1444H, corresponding to 18/02/2023G.The bank may open accounts for companies residing in Saudi Arabia upon completing the following:
1. A copy of the commercial register shall be obtained.
2. Obtaining a copy of the memorandum of association or the articles of association and their annexes.
3. Obtaining a copy of the ID of the manager in charge.
4. Verifying the identity of board members.
5. Obtaining the power of attorney issued by a notary public or a notary (or the authorization made in the bank by the person/persons who, by virtue of memorandum of association, partners’ decision or board of directors’ decision, has/have the power to authorize), authorizing natural persons to sign for and operate the accounts.
6. Obtaining copies of the IDs of individuals authorized to sign for and operate the accounts.
7. Verifying the IDs of the owners of the company, whose names are included in the last update of the memorandum of association. Public joint-stock companies are excluded from this requirement.
• Where the owner or one of the owners of the company is an endowment, private society/foundation or cooperative association, according to the memorandum of association, the bank must then fulfill the following, in addition to the above requirements:
1. Obtaining 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 and the decision of the board of directors of the society/foundation (meeting minutes) approving the establishment of the company (for private societies/foundations or cooperative associations).
2. Obtaining 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 of high risk if the ownership of endowments, private societies/foundations or cooperative associations exceeds 50% of the company's capital.
300.1.3.1 Joint-Stock and Simplified Joint-Stock Companies
This rule has been amended according to the circular No. (44061480), Dated 28/07/1444H, corresponding to 18/02/2023G, please refer to the Arabic version of this rule to read the last updated version.• Companies under formation:
The bank accounts for depositing and retaining the capital of these companies under formation shall be opened as follows:
1. A letter from the founders, including at a minimum: a request to open the account stating its purpose as "Depositing the capital of the company (…name of the company) Under Formation," the names of the founders, and the ownership percentage of each founder in the company's capital.
2. The name of the account shall be as follows :"Founders Account of the Company (name of the company) "
3. Verifying the identity of the company's founders.
4. Payment from the account shall only be allowed by the company's board of directors after its registration in the commercial register and the bank's completion of the required documents in accordance with the requirements of Rule (300-1-3) related to resident companies. In the event the company's formation is not completed, the bank must return the amounts to each founder according to their share of the capital.
• Licensed companies:
Documents required are as specified in (300.1.3) above.
300.1.3.2 Limited Liability Companies
Documents required are as specified in (300.1.3) above.
300.1.3.3 General Partnerships
Documents required are as specified in (300.1.3) above.
300.1.3.4 Limited Partnerships
Documents required are as specified in (300.1.3) above.
300.1.3.5 GCC Commercial Non-Banking Companies Residing in Saudi Arabia
Should a GCC company acquire a commercial register in Saudi Arabia (without investment license issued by the Ministry of Investment), such company shall be treated as a resident company, subject to the same requirements applicable to Saudi resident companies. Consequently, such GCC company shall submit the required documents specified in (300.1.3) above.
300.1.3.6 Rules for Opening Escrow Accounts for Real Estate Development Projects
This rule has been amended according to the circular No. (46028059), Dated 08/05/1446H, corresponding to 09/11/2024G.The bank may open escrow accounts for real estate projects (sale or rental of off-plan real estate projects or real estate contributions) after fulfilling the following documents and procedures:
1. Verifying and identifying of the real estate developer, consulting office/engineering consultant, and certified public accountant in the legal form for each of them.
2. A written undertaking shall be made by the real estate developer stating that no disbursement shall be made from the account for purposes other than those concerning the project determined or its returns in the escrow account.
3. A written undertaking shall be made by the real estate developer stating its consent to amend the escrow account agreement to comply with any relevant laws, regulations, or instructions.
- Controls related to Opening and Managing Escrow Accounts for Off-Plan Sale or Rental Real Estate Projects:
1. Only one account shall be opened for each individual project and shall be named as follows: "name of project" Project- Escrow Account for "name of real estate developer”. Sub-accounts linked to the main account of the project may be opened, such as administrative and marketing expenses account, savings account, construction cost account, incentives account and finance account.
2. Payment shall be made from the project's escrow account based on the payment document submitted by the real estate developer to the bank. Such documents shall be certified by the consulting office and the certified public accountant and shall include the required amounts and justifications for their expenditure. Payment documents may be processed through secure technological means.
3. By exception to the provision in paragraph (2) above, payment may be made from the escrow account upon request from the Real Estate General Authority. The bank shall be notified through the Saudi Central Bank.
4. Payment from the account shall be made by check or transfers only and shall be within the limits stated in Paragraphs (2) and (3) above.
5. Deposits in the account shall be made by buyers, tenants, or financiers via any means of payment accepted by the bank other than cash.
- Controls for Opening and Managing Escrow Accounts for Real Estate Contribution Projects:*
1. Only one account shall be opened for each individual project and shall be named as follows: "name of project" Project- Escrow Account for "Real Estate Contribution”. Sub-accounts linked to the main account of the contribution may be opened, such as: reserve account, revenue account, and any other sub-accounts for the purpose of the contribution project, such as a finance account.
2. Payment shall be made from the project's escrow account based on the payment document submitted by the real estate developer to the bank. Such documents shall be certified by the engineering consultant and the certified public accountant and shall include the required amounts and justifications for their expenditure. Payment documents may be processed through secure technological means.
3. Payment from the account shall be made by check or transfers only and shall be within the limits stated in Paragraph (2) above.
4. Payment shall be made from the reserve account based on the payment document submitted by the real estate developer to the bank. Such documents shall be certified by the engineering consultant and the certified public accountant and shall include the required amounts and justifications for their expenditure, along with the approval from the shareholders' association.
5. Payment shall be made from the revenue account based on the disbursement document submitted by the real estate developer, which must be recorded on the shareholders' register and certified by the certified public accountant. The document must include the required amounts and be accompanied by the completion certificate from the consultant or proof of the liquidation of the real estate contribution.
6. Deposits into the main and sub-accounts shall be made by the relevant financial market institution for issuing contribution certificates, financiers, or buyers, or from proceeds of the liquidation of the real estate contribution, by any accepted method, and cash deposits are not permitted.
- General Provisions:
1. The bank shall not activate the escrow account for the real estate project unless the license issued by the “Authority” to engage in the off-plan sale or rental of real estate projects or to offer the real estate contribution is submitted.
2. Project’s sub-accounts shall be used only for receiving/making deposits and transfers from and (in)to the main account.
3. No funds may be transferred from the escrow account to any other accounts other than that of its sub-accounts whose purposes are specified.
4. Checkbooks may be issued for this account at the request of the real estate developer. However, ATM cards and/or credit cards shall not be issued for this account.
5. The bank shall not attach the account for its own interest or that of the creditors of the real estate developer.
6. The bank shall not close the escrow account for the project except after obtaining approval from the relevant authority, without prejudice to the provisions of SAMA's instructions and the agreements in place.
* This rule has been added pursuant to the circular No. (46028059), Dated 08/05/1446H, corresponding to 09/11/2024G.
300.1.3.7 Collection Accounts for Depositing and Retaining the Funds of Payment Companies’* Clients
This rule has been added pursuant to the circular No. (42073085), Dated 21/10/1442H, corresponding to 01/06/2021G.The collection accounts for depositing and retaining the funds of payment companies’ clients shall be opened and managed in accordance with the following requirements:
1. A letter from the Chairperson of the Board of Directors of the company or their authorized representative to the bank, stating the purpose of opening the account under the name “Deposit and Retention of the Funds of (name of payment company)‘s Clients”, and identifying the persons authorized to manage the account.
2. A copy of SAMA’s non-objection letter to open a collection account for the company for the purpose of depositing and retaining the funds of their clients.
3. Copies of all the company’s incorporation documents, including the memorandum of association, articles of association and Board formation decision.
4. Copies of the IDs of persons authorized to manage the account.
5. The name of the account shall be “Deposit and Retention of the Funds of (name pf payment company)‘s Clients”.
6. The account shall be separate and independent from the accounts opened for managing the company’s business, including the fees and commissions collected by the company. The account shall not be used for any financial obligations or rights of the company.
7. Payment transactions and transfer of money to other accounts, other than the payment orders made by clients, shall only be made after submitting SAMA’s non-objection for such transaction.
8. Cash deposits to or withdrawals from the account shall not be allowed.
* Payment Service Providers
300.1.3.8 Collection Accounts for Managing the Finance Value of Debt-Based Crowdfunding Companies
This rule has been added pursuant to the circular No. (42075950), Dated 29/10/1442H, corresponding to 09/06/2021G, and amended by circular No. (000046024651), dated 19/04/1446H, corresponding to 22/10/2024G.The collection accounts for collecting funds from participants in order to extend credit to beneficiaries shall be opened and managed in accordance with the following requirements:
1. A letter from the Chairperson of the Board of Directors of the company or their authorized representative to the bank, stating the purpose of opening the account under the name “Management of the Finance Amount of (name of debt-based crowdfunding company)”, and identifying the persons authorized to manage the account.
2. Copies of all the company’s incorporation documents, including the memorandum of association, articles of association and Board formation decision.
3. Copies of the IDs of persons authorized to manage the account.
4. The name of the account shall be “Management of the Finance Amount of (name of debt-based crowdfunding company).”
5. The account shall be separate and independent from the accounts opened for managing the company’s business, including the fees and commissions collected by the company. The account shall not be used for any financial obligations or rights of the company.
6. Transfer of money to other accounts without the approval of the participants shall only be made after submitting SAMA’s non-objection for such transaction.
7. Cash deposits to or withdrawals from the account shall not be allowed.
300.1.3.9 Companies in the Special Logistics Zone
The bank may open accounts for companies that are established and registered in the Special Logistics Zone of the General Authority of Civil Aviation (GACA)- under Companies Regulations for the Special Integrated Logistics Zone- after submitting the following documents:
- A copy of the commercial register issued by the GACA.
- A copy of the company’s memorandum of association and appendixes.
- Verifying the IDs of the board members/executives.
- A power of attorney issued by a notary public or a notary or an authorization made in the bank by the person(s) who has the authority, by the memorandum of association or partners’ decision or board/executives’ decision, to authorize natural persons to sign and operate accounts.
- Copies of the IDs of individuals authorized to sign for and operate the accounts.
300.1.4 Residents Investing Under Foreign Investment Law
No: 65681/67 Date(g): 3/7/2019 | Date(h): 1/11/1440 Status: In-Force This rule has been respectively amended according to the circular No. (41029537), dated 27/04/1441H, corresponding to 24/12/2019G ,and circular No. (44082632), dated 28/10/1444H, corresponding to 18/05/2023G,please refer to the Arabic version of this rule to read the last updated version.The bank may open accounts for entities wholly owned by a foreign investor or jointly owned by a foreign investor and a Saudi investor upon receiving the following:
300.1.4.1 Joint-Venture Entities Owned by a Saudi Investor and a Foreign Investor
This rule has been respectively amended according to the circular No. (41029537), dated 27/04/1441H, corresponding to 24/12/2019G ,and circular No. (44082632), dated 28/10/1444H, corresponding to 18/05/2023G,please refer to the Arabic version of this rule to read the last updated version.• Joint-venture entity owned by a foreign investor (natural or juristic) and a Saudi investor (natural or juristic):
1. A copy of the license issued by the Ministry of Investment.
2. A copy of the commercial register without the need to acquire the business license, or a copy of the professional license of the entity if the entity is a service provider.
3. A copy of the memorandum of association or the articles of association and its annexes.
4. A copy of the ID of the manager in charge in the entity. A copy of the passport can be sufficient, provided that a copy of the Iqama is submitted (90) days after opening the account.
5. Copies of the IDs of persons authorized to operate and manage the account, and verification of their authorization by identifying them in the memorandum of association, the articles of association, or a decision from the board of directors or partners – or their equivalent. If the authorized person for the account is an agent acting on behalf of the principal, a copy of the power of attorney issued by a notary public or a notary in Saudi Arabia must be provided, or the power of attorney must be authenticated by the Saudi embassy or with an Apostille Authentication if issued outside Saudi Arabia.
6. Understanding the ownership structure and identifying the partners whose names are mentioned in the memorandum of association or the articles of association, and verifying them using documents, data, or information from a reliable and independent source. -In cases where money laundering risks are lower-, the verification process can be completed later, after the account is opened, provided that it is done as quickly as possible. Any delay in identity verification must be necessary to avoid disrupting normal business procedures, and appropriate and effective measures should be applied to control money laundering risks.
300.1.4.2 Entities Wholly Owned by a Foreign Investor
This rule has been respectively amended according to the circular No. (41029537), dated 27/04/1441H, corresponding to 24/12/2019G ,and circular No. (44082632), dated 28/10/1444H, corresponding to 18/05/2023G,please refer to the Arabic version of this rule to read the last updated version.• Branches of foreign corporations or companies:
1. A copy of the license issued by the Ministry of Investment.
2. A copy of the commercial register without the need to acquire the business license, or a copy of the professional license of the entity if the entity is a service provider.
3. A copy of the ID of the manager in charge in the entity. A copy of the passport can be sufficient, provided that the Iqama is submitted (90) days after opening the account.
4. A copy of the commercial register or professional license, as well as the memorandum of association or the articles of association of the entity in the home country, certified by the Saudi embassy or with an Apostille Authentication.
5. Copies of the IDs of persons authorized to operate and manage the account, along with verification of their authorization by identifying them in a mandate from the main office of the company or corporation in the home country. The authorization must name the persons authorized to sign on behalf of the company in Saudi Arabia regarding the bank accounts.
6. Understanding the ownership structure and identifying the partners of the entity in the home country, whose names are mentioned in the memorandum of association or the articles of association, and verifying them using documents, data, or information from a reliable and independent source. -In cases where money laundering risks are lower-, the verification process can be completed later, after the account is opened, provided that it is done as quickly as possible. Any delay in identity verification must be necessary to avoid disrupting normal business procedures, and appropriate and effective measures should be applied to control money laundering risks.
• An entity owned by a foreign investor or jointly owned by more than one foreign investor:
1. A copy of the license issued by the Ministry of Investment.
2. A copy of the commercial register without the need to acquire the business license, or a copy of the professional license of the entity if the entity is a service provider.
3. A copy of the memorandum of association or the articles of association and its annexes.
4. A copy of the ID of the manager in charge in the entity. A copy of the passport can be sufficient, provided that the Iqama is submitted (90) days after opening the account.
5. Copies of the IDs of persons authorized to operate and manage the account, and verification of their authorization by identifying them in the memorandum of association, the articles of association, or a decision from the board of directors or partners – or their equivalent. If the authorized person for the account is an agent acting on behalf of the principal, a copy of the power of attorney issued by a notary public or a notary in Saudi Arabia must be provided, or the power of attorney must be authenticated by the Saudi embassy or with an Apostille Authentication if issued outside outside Saudi Arabia.
6. Understanding the ownership structure and identifying the partners whose names are mentioned in the memorandum of association or the articles of association, and verifying them using documents, data, or information from a reliable and independent source. -In cases where money laundering risks are lower-, the verification process can be completed later, after the account is opened, provided that it is done as quickly as possible. Any delay in identity verification must be necessary to avoid disrupting normal business procedures, and appropriate and effective measures should be applied to control money laundering risks.
• Foreign individual investor (Sole proprietorships):
1. A copy of the license issued by the Ministry of Investment.
2. A copy of the commercial register without the need to acquire the business license.
3. A copy of the Iqama for the manager in charge and the investor, owner of the entity. A copy of the passport can be sufficient, provided that the Iqama is submitted (90) days after opening the account.
4. The full address of the investor in his/her home country.
5. Copies of the IDs of persons authorized to operate and manage the account, as identified in a power of attorney certified by a notary public or a notary if issued inside Saudi Arabia and by the Saudi embassy or Apostille Authentication if issued outside Saudi Arabia, in the case of an agent or authorized person other than the owner of the entity.
300.1.5 Rules for Non-Profit Sector, Hajj and Umrah Entities, and Public Entities
The bank may open accounts for non-profit sector, Hajj and Umrah entities, and public entities upon fulfilling the requirements set forth for each activity as outlined below. Only residents in Saudi Arabia are allowed to operate the accounts of these licensed entities, with the exception of individuals authorized to operate Hajj and Umrah accounts as per Rule (300.1.5.1). Copies of the IDs of such persons must be obtained for account opening.
300.1.5.1 Hajj, Umrah and Visiting the Prophet’s Mosque in Madinah
This rule has been amended according to the circular No. (46032385), Dated 29/05/1446H, corresponding to 30/11/2024G.• Pilgrim affairs offices:
a. Requirements for opening a bank account:
1. Bank accounts shall be opened in Saudi riyal only.
2. The Hajj organizer shall present to the bank a letter from the Saudi Ministry of Hajj and Umrah approving opening a bank account for the pilgrim affairs office and including the office’s information as follows:
■ The official name of the pilgrim affairs office.
■ Names of the persons authorized to sign for the account (joint signature), provided that they shall be members of the pilgrim affairs office or shall be officials in the embassy of the country of such office.
■ The position of each account signatory and his/her information as per his/her passport.
■ The bank account shall be limited to Hajj purposes only.
■ The office’s bank account number in its home country or in the country designated by the Saudi Ministry of Hajj and Umrah ,and the name of the bank transferring the money, which the office deals with in its home country or in the country designated by the Saudi Ministry of Hajj and Umrah, shall also be stated.
3. The bank shall conclude an account opening agreement with the authorized signatories specified in the letter of the Ministry of Hajj and Umrah, addressed to the bank.
4. The account signatories shall determine, in Saudi riyal, the approximate total amount that their respective office will transfer for Hajj purposes.
5. Upon meeting the above requirements by the bank, the bank’s compliance department shall submit an application to SAMA along with all necessary documents to obtain SAMA approval for opening the bank account.
6. The bank shall ensure that such accounts are subject to dual control.
7. The bank shall provide the pilgrim affairs office and the Saudi Ministry of Hajj and Umrah with the IBAN number of the office’s bank account.
8. If the requirements for opening a bank account are not met, the bank branch manager must inform the applicant of the necessary requirements for opening a bank account. Such process shall be documented in a special file designed for this purpose in the bank branch. In addition, measures taken in this regard shall be reported to the compliance department at the head office of the bank on the same day.
9. If the requirements for opening a bank account are met, the documents shall be submitted on the same day to the compliance department at the bank’s head office. Consequently, the compliance department, in turn, shall submit such documents to SAMA on the same day or at the beginning of the following working day, at the most.
10. The pilgrim affairs office may open multiple accounts, provided that these accounts are opened in the same bank only - with an explanation of the account's purpose -, The office may not open other accounts in other banks. If the office requests to transfer its accounts from one bank to another, it shall provide compelling justifications that are not related to meeting the requirements. Approval of the Ministry Hajj and Umrah and SAMA for that matter shall be secured.
b. Requirements for account operation and management:
1. The account shall be operated under a new approval letter from the Saudi Ministry of Hajj and Umrah to the bank on the account operation. The letter should specify the operation period, which should be from the beginning of Rabi II up till the end of Muharram of the following year. The letter shall be accompanied by a list provided by the pilgrim affairs office. This list shall include the names of Saudi natural persons, companies and establishments that the office will be dealing with for petty expenses, and it shall be attested by the Saudi Ministry of Hajj and Umrah.
2. Deposits shall be made in the accounts of the pilgrim affairs office via remittances from a bank in the office’s home country or countries designated by the Saudi Ministry of Hajj and Umrah, the purpose of such remittance shall be specified as “office’s expenses related to Hajj only”.
3. Deposits may be made in the account via checks under collection, drawn by the office itself on a bank in the office’s home country only.
4. Remittances, checks or cash deposits from entities inside Saudi Arabia shall not be accepted, except in the following cases:
■ By persons whose names are included in the list, submitted in advance to the Saudi Ministry of Hajj and Umrah by the pilgrim affairs office and attached to the ministry's letter to the bank. Such list should include the names of service providers dealing with the pilgrim affairs office. The amounts of such remittances, shall be less than or equal to the amounts stated in contracts concluded with each beneficiary (at the Saudi Ministry of Hajj and Umrah’s discretion).
■ By authorized persons, provided that such an amount is within normal limits, i.e. is less than or equal to the withdrawn amount as petty expenses (at the Saudi Ministry of Hajj and Umrah’s discretion).
■ The amounts (in SAR/foreign currencies) disclosed at ports of entry (land ports, seaports, or airports) shall be delivered to the bank branch at the port or the bank representative in the seasonal office at the port as per a document from the Saudi Zakat, Tax, and Customs Authority. Such document shall include the name of the pilgrim affairs office and its account number (IBAN) in Saudi Arabia, as well as the name of the cash carrier and a copy of his/her passport. The bank employee shall give the depositor a deposit or transfer receipt attested by the bank.
5. Transfers from the office’s account to the electronic pathway of the Ministry of Hajj and Umrah are made for services contracted through the electronic pathway. Direct transfers from the office’s account in its country—or in countries designated by the Saudi Ministry of Hajj and Umrah—to the electronic pathway account of the Saudi Ministry of Hajj and Umrah for external pilgrims are allowed for contracting purposes related to Hajj arrangements and any other purposes specified by the Saudi Ministry of Hajj and Umrah, in compliance with all requirements stated in this rule.
6. The organizer may pay authorized signatories by checks for petty expenses (within the estimated amounts approved by the Saudi Ministry of Hajj and Umrah).
7. The approval of the bank’s compliance department is required for the operation of the office’s account.
8. The office shall not use its account balances for investments.
c. Operating the pilgrim affairs office’s account after Hajj season:
1. At the end of the Hajj season (end of Muharram), amounts left in the account of the pilgrim affairs office shall be returned to a bank in the office’s home country or to a bank in one of the countries designated by the Saudi Ministry of Hajj and Umrah in case they were the source of these funds at the request of the authorized persons in the office. Such a request shall be indicated in the bank account opening agreement signed by the office.
2. If the office wants to keep the balance in the same account to be used in the subsequent Hajj year, the account will be frozen at the end of Muharram until the beginning of the subsequent Hajj season (which is to be specified by the Ministry of Hajj and Umrah).
3. In exceptional cases, operating the account of the pilgrim affairs office may be allowed during the period in which using the account is originally prohibited, provided that the bank obtains SAMA written approval therefor.
d. Reactivating and operating the pilgrim affairs office’s account in the following Hajj year:
To reactivate the pilgrim affairs office’s bank account in the following Hajj year, the bank shall obtain a letter from the Ministry of Hajj and Umrah, including the same information specified in the form filled out by the ministry when it first approved the account opening. In particular, the information should include the names of authorized persons and their information. The approval letter should be obtained along with the list provided by the pilgrim affairs office for the Ministry of Hajj and Umrah, stating the parties that the office has contracted with in the Hajj year and that the office will write checks and make payments for. This list shall be attested by the Ministry of Hajj and Umrah.
• Tourism companies and travel agencies organizing pilgrim arrival from outside Saudi Arabia:
a. Requirements for opening a bank account:
1. Bank accounts shall be opened in Saudi riyal only.
2. The Hajj organizer shall present to the bank a letter from the Ministry of Hajj and Umrah approving opening a bank account for the pilgrim affairs office and including the office’s information as follows:
■ Official name of the organizer (tourism company, agency or association approved to organize pilgrims’ arrival) in Arabic and English.
■ The computer number given to the organizer by the Ministry of Hajj and Umrah.
■ Name(s) of person(s) authorized to manage the bank account, provided that they are officials in the tourism company, agency or association approved to organize for pilgrim arrival. Full names shall be written in English and Arabic as shown in their passports, along with their passport number.
■ The authorized person’s title shall be a “Hajj organizer".
■ The bank account shall be limited to Hajj purposes only.
■ The organizer’s bank account number in its home country or or in the country designated by the Saudi Ministry of Hajj and Umrah, shall be specified, as well as the name of the bank transferring funds, which the organizer deals with in its home country or in the country designated by the Saudi Ministry of Hajj and Umrah.
3. A copy of the organizer’s commercial register and/or license issued for the organizer in its home country shall be submitted. Such commercial register and/or license shall be attested by the concerned Saudi embassy and/or the Ministry of Foreign Affairs.
4. The bank must obtain copies of the passports of person(s) authorized to operate the bank account for dual control.
5. The bank shall conclude an account opening agreement with the authorized signatories.
6. The organizer shall determine, in Saudi riyal, the approximate total amount that it will transfer for Hajj purposes.
7. Upon meeting all the above requirements by the bank, the bank’s compliance department shall submit an application to SAMA along with all necessary documents to obtain SAMA approval for opening the bank account.
8. The bank shall ensure that such accounts are subject to dual control.
9. The bank shall provide the organizer and the Ministry of Hajj and Umrah with the IBAN number of the organizer's account on a form designed for this purpose.
10. If the requirements for opening a bank account are not met, the bank branch manager must inform the applicant of the necessary requirements for opening a bank account. Such process shall be documented in a special file designed for this purpose in the bank branch. In addition, measures taken in this regard shall be reported to the compliance department at the head office of the bank on the same day.
11. If the requirements for opening a bank account are met, the documents shall be submitted on the same day to the compliance department at the bank’s head office. Consequently, the compliance department, in turn, shall submit such documents to SAMA on the same day or at the beginning of the following working day, at the most.
12. Where all requirements are met, the period for opening a bank account shall not exceed two working days.
13. The Hajj organizer may open multiple accounts, provided that these accounts are opened in the same bank only - with an explanation of the account's purpose - The organizer may not open other accounts in other banks. If the organizer requests to transfer its accounts from one bank to another, it shall provide compelling justifications that are not related to meeting the requirements. Approval of the Ministry Hajj and Umrah and SAMA for that matter shall be secured.
b. Requirements for account operation and management:
1. The account shall be operated under a new approval letter from the Ministry of Hajj and Umrah to the bank on the account operation. The letter should specify the operation period, which should be from the first day of Rabi I up till the last day of Muharram of the following year. The letter shall be accompanied by a list provided by the Hajj organizer. This list shall include the names of Saudi natural persons, companies and establishments that the organizer will be dealing with for petty expenses, and it shall be attested by the Ministry of Hajj and Umrah.
2. Deposits shall be made in the account of the Hajj organizer via remittances from a bank in the organizer’s home country or countries designated by the Saudi Ministry of Hajj and Umrah, the purpose of such remittance shall be specified as “organizer’s expenses related to Hajj only”.
3. Deposits may be made in the account via checks under collection, drawn by the organizer itself on a bank in the organizer’s home country only.
4. Remittances, checks or cash deposits from entities inside Saudi Arabia shall not be accepted, except in the following cases:
■ By persons whose names are included in the list, submitted in advance to the Ministry of Hajj and Umrah by the organizer and attached to the ministry's letter to the bank. Such list should include the names of service providers dealing with the organizer. The amounts of such remittances, checks or cash deposits shall be less than or equal to the amounts stated in contracts concluded with each beneficiary (at the Saudi Ministry of Hajj and Umrah’s discretion).
■ By authorized persons, provided that such an amount is within normal limits, i.e. is less than or equal to the withdrawn amount as petty expenses (at the Saudi Ministry of Hajj and Umrah’s discretion).
■ The amounts (in SAR/foreign currencies) disclosed at ports of entry (land ports, seaports, or airports) shall be delivered to the bank branch at the port or the bank representative in the seasonal office at the port as per a document from the Saudi Zakat, Tax, and Customs Authority. Such document shall include the name of the organizer and its account number (IBAN) in Saudi Arabia, as well as the name of the cash carrier and a copy of his/her passport. The bank employee shall give the depositor a deposit or transfer receipt attested by the bank.
5. Transfers from the office’s account to the electronic pathway of the Ministry of Hajj and Umrah are made for services contracted through the electronic pathway. Direct transfers from the office’s account in its country—or in countries designated by the Saudi Ministry of Hajj and Umrah—to the electronic pathway account of the Saudi Ministry of Hajj and Umrah for external pilgrims are allowed for contracting purposes related to Hajj arrangements and any other purposes specified by the Saudi Ministry of Hajj and Umrah, in compliance with all requirements stated in this rule.
6. The organizer may pay authorized signatories by checks for petty expenses (within the estimated amounts approved by the Saudi Ministry of Hajj and Umrah).
7. The approval of the bank’s compliance department is required for the operation of the organizer’s account.
8. The organizer shall not use its account balances for investments.
c. Operating the organizer’s account after Hajj season:
1. At the end of the Hajj season (end of Muharram), amounts left in the account of the organizer shall be returned to a bank in the office’s home country or to a bank in one of the countries designated by the Saudi Ministry of Hajj and Umrah in case they were the source of these funds at the request of the authorized persons. Such a request shall be indicated in the bank account opening agreement signed by the organizer.
2. If the organizer wants to keep the balance in the same account to be used in the subsequent Hajj year, the account will be frozen at the end of Muharram until the beginning of the subsequent Hajj season (which is to be specified by the Ministry of Hajj and Umrah).
3. In exceptional cases, operating the account of the organizer may be allowed during the period in which using the account is originally prohibited, provided that the bank shall obtain SAMA written approval therefor.
d. Reactivating and operating the organizer’s account in the following Hajj year:
To reactivate the organizer’s bank account in the following Hajj year, the bank shall obtain a letter from the Ministry of Hajj and Umrah, including the same information specified in the form filled out by the ministry when it first approved the account opening. In particular, the information should include the names of authorized persons and their information. The approval letter should be obtained along with the list provided by the organizer for the Ministry of Hajj and Umrah, stating the parties that the organizer has contracted with in the Hajj year and that the organizer will write checks and make payments for. This list shall be attested by the Ministry of Hajj and Umrah.
• Saudi establishments and companies organizing the arrival of Umrah performers and visitors of the Prophet's Mosque:
- Documents required from those Saudi establishments are as specified in Rule (300.1.1) above.
- Documents required from those Saudi companies are as specified in Rule (300.1.3) above.
- All bank accounts of Saudi establishments and companies licensed to offer Umrah and holy site visit services shall be separated from one another, in that bank accounts designated for Umrah and holy site visit services shall be separate from other bank accounts designated for other activities and services. In addition, all bank transactions related to Umrah services shall be separate from those related to other services and activities that such establishments and companies may carry out.
300.1.5.2 Private Associations
This rule has been amended according to the circular No. (106878603), Dated 01/07/1446H, corresponding to 31/12/2024H. Please refer to the Arabic version of this rule to read the last updated version.
The bank may open accounts only in Saudi riyal for private associations. The requirements are as follows:a. Requirements and controls for opening and managing main bank accounts:
- Requirements for opening main account:
1. A copy of the registration certificate issued by the National Center for the Development of the Non-Profit Sector (NCNP) (the Center).
2. A copy of the association's bylaws, approved by the Center.
3. A copy of the decision to form the board of directors and appoint the officials, which is approved by the Center, along with the verification of the board members' identities.
4. Copies of the IDs of persons authorized to operate and manage the account, and verification of their authorization by identifying them in the decision of the board of directors; such authorization shall allow for joint signature by two officials, and obtaining the approval of the Center when the authorized persons are from outside the board.
5. Approval of the bank’s senior management to open the account in cases where required -in accordance with the provisions of the Guidance of Anti Money Laundering and Combating Terrorist Financing-.
- Controls for managing the main account:
1. Cash donations or donations made via electronic channels may be accepted as long as these donations come from banking sources inside Saudi Arabia only, through which donor’s information can be retrieved.
2. If disbursement is made by a check, the check shall be payable to the first beneficiary.
3. ATM and/or credit cards shall not be issued for such accounts.
4. No transactions (e.g. remittance, collection of checks, etc.) from the association’s 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 therefore from the Center (NCNP).
5. Remittances or checks coming from outside Saudi Arabia to the association’s account at the bank -or coming to other banks operating in Saudi Arabia via the bank- shall not be accepted, unless official approval therefore is obtained from the Center (NCNP).
6. Sub-accounts may be opened for investing the association’s funds in activities with financial returns that would help the association achieve its objectives. To do so, the bank must first obtain the association’s rules that govern the investment of its surplus funds, which are approved by its general assembly.
b. Requirements and controls for opening and managing sub-accounts:
Sub-accounts may be opened for the various purposes of the association, such as the collection of Zakat, as follows:
1. Only the documents for opening and managing the main account shall be required.
2. These accounts shall be used only for the purpose for which they were opened.
3. Cash donations or donations made via electronic channels may be accepted as long as these donations come from banking sources inside Saudi Arabia only, through which donor’s information can be retrieved.
4. In case there are branches of the association, one sub-account may be opened for each branch of the association, with the primary purpose being "Expenses-Branch Name", as follows: a. A copy of the approval of the Center (NCNP) for establishing the branch for which a sub-account is to be opened. b. A copy of the organizational structure decision for the branch and the names of the employees in its management, approved by the Center (NCNP), with Verifying their identities. c. Copies of the IDs of persons authorized to operate and manage the bank account, and verification of their authorization by identifying them in the decision of the association's board of directors; such authorization shall allow for joint signature by two officials, and obtaining the approval of the Center when the authorized persons are from outside the board. d. The sub-account shall be named “Branch of... Association/Office in (City)-Subaccount of Periodic Advance”. e. Disbursements from the account shall be limited to the following: - bank checks withdrawn only by the first beneficiary. - Transfers made to the bank accounts of beneficiaries of charity inside Saudi Arabia only. The transfer forms shall be filled out by the persons authorized to sign for the advances’ account. In addition, the transfers shall be monitored by the bank to ensure that they go in line with the nature of the branch’s activities. - Paying salaries of the association branch’s staff. - Paying utility bills and government invoices. f. ATM and/or credit cards shall not be issued for such accounts. g. Approval of the bank’s senior management to open the account in cases where required -in accordance with the provisions of the Guidance of Anti Money Laundering and Combating Terrorist Financing-. h. Cash donations or donations made via electronic channels may be accepted as long as these donations come from banking sources inside Saudi Arabia only, through which donor’s information can be retrieved. 300.1.5.3 Private Foundations
This rule has been amended according to the circular No. (106878603), Dated 01/07/1446H, corresponding to 31/12/2024H. Please refer to the Arabic version of this rule to read the last updated version.The bank may open accounts only in Saudi riyal for private Foundations. The requirements are as follows:
a. Requirements and controls for opening and managing main bank accounts:
- Requirements for opening main account:
1. A copy of the registration certificate issued by the National Center for the Development of the Non-Profit Sector (NCNP) (the Center).
2. A copy of the foundation's bylaws, approved by the Center.
3. A copy of the trustee board formation decision and verifying the identities of the members.
4. Copies of the IDs of persons authorized to operate and manage the bank account, and verification of their authorization by identifying them in the decision of the trustees board; such authorization shall allow for joint signature by two officials, and obtaining the approval of the Center when the authorized persons are from outside the board.
5. Approval of the bank’s senior management to open the account in cases where required -in accordance with the provisions of the Guidance of Anti Money Laundering and Combating Terrorist Financing-.
- Controls for managing the main account:
1. If disbursement is made by a check, the check shall be payable to the first beneficiary.
2. ATM and/or credit cards shall not be issued.
3. A prepaid card may be issued and funded based on the joint signature of the authorized persons on the account.
4. The foundation is not allowed to accept gifts, bequests, donations, endowments, grants, or Zakat from parties other than the founders specified in its bylaws, unless the approval of the Center is obtained. Additionally, private foundations are not allowed to carry out any cash dealings.
5. No transactions (e.g. remittance, collection of checks, etc.) to any beneficiaries outside Saudi Arabia shall be made, except for transferring money for the purpose of managing the foundation’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 therefore from the Center (NCNP).
6. Remittances or checks coming from outside Saudi Arabia to the foundation’s account at the bank shall not be accepted, unless official approval therefore is obtained from the Center (NCNP).
7. Sub-accounts may be opened for investing the foundation’s funds in activities with financial returns that would help the foundation achieve its objectives, after obtaining approval from the Board of Trustees.
b. Requirements and controls for opening and managing sub-accounts:
Sub-accounts may be opened for the various purposes of the foundation, as follows:
1. Only the documents for opening and managing the main account shall be required.
2. These accounts shall be used only for the purpose for which they were opened.
3. In case there are branches of the foundation, one sub-account may be opened for each branch of the foundation, with the primary purpose being "Expenses-Branch Name", as follows:
a. A copy of the approval of the Center (NCNP) for establishing the branch for which a sub-account is to be opened.
b. A copy of the organizational structure decision for the branch and the names of the employees in its management, approved by the Center (NCNP), with Verifying their identities.
c. Copies of the IDs of persons authorized to operate and manage the account, and verification of their authorization by identifying them in the decision of the Board of Trustees of the Foundation; such authorization shall allow for joint signature by two officials, and obtaining the approval of the Center when the authorized persons are from outside the board.
e. Disbursements from the account shall be limited to the following:
- bank checks withdrawn only by the first beneficiary.
- Transfers made to the bank accounts of beneficiaries of material support inside Saudi Arabia only. The transfer forms shall be filled out by the persons authorized to sign for the expense sub-account. In addition, the transfers shall be monitored by the bank to ensure that they go in line with the nature of the branch’s activities.
- Paying salaries of the foundation branch’s staff.
- Paying utility bills and government invoices.
f. ATM cards and/or credit cards shall not be issued for such accounts.
g. A prepaid card may be issued and funded based on the joint signature of the authorized persons on the account.
h. Approval of the bank’s senior management to open the account in cases where required -in accordance with the provisions of the Guidance of Anti Money Laundering and Combating Terrorist Financing-.
- Civil Society Organizations established pursuant to royal orders:
This rule has been added pursuant to the circular No. (450651330000), dated 14/10/1445H, corresponding to 22/04/2024G. Please refer to the Arabic version of this rule to read the last updated version.
Bank accounts may be opened for Civil Society Organizations established pursuant to royal orders as follows:
1. A copy of the approval from His Majesty the King for the establishment of the civil society organization.
2. A copy of the articles of association of the organization.
3. A copy of the trustee board formation decision and verifying the identities of the members.
4. Copies of the IDs of persons authorized to manage and operate the bank account, with verification of their authorization by identifying them in a decision by the Board of Trustees. The signature should be joint for two officials, unless the organization's articles of association state otherwise.
5. Any transactions (e.g. remittance, collection of checks, etc.) outside Saudi Arabia may be made after verifying that these transactions align with the activity or main purpose for which the organization was established, as per its articles of association.
6. No transactions (e.g. remittance, collection of checks, etc.) outside Saudi Arabia shall be made for an organization if it is evident that the transaction does not align with its activity or main purpose under its articles of association, except for transferring money for the purpose of managing the organization’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 obtaining approval from the National Center for Non-Profit Sector.
• Family funds:
This rule has been amended according to the circular No. (43074912), dated 26/08/1443H, corresponding to 29/03/2022G.and the circular No. (106878603), Dated 01/07/1446H, corresponding to 31/12/2024H. Please refer to the Arabic version of this rule to read the last updated version.The bank may open accounts only in Saudi riyal for family funds. The requirements are as follows:
a. Requirements and controls for opening and managing main bank accounts:
- Requirements for opening main account:
1. A letter from the chairman of the trustee board of the family fund (or their authorized representative) to the bank in which the account is to be opened clearly indicating the purpose of opening the account.
2. A copy of the registration certificate issued by the National Center for the Development of the Non-Profit Sector (NCNP).
3. A copy of the fund's bylaws, approved by the Center.
4. A copy of the trustee board formation decision approved by the Center, and verifying the identities of the members.
5. Copies of the IDs of persons authorized to operate and manage the bank account, and verification of their authorization by identifying them in the decision of the trustees board and the approval of the Center. The signature should be joint for two officials.
Controls for managing the main account: 1. disbursement from the fund shall be in accordance with the methods and conditions stipulated in the fund's bylaws.
2. The family fund may accept funds, gifts, bequests, Zakat and subscriptions (if any) from its founders and family members only, provided that the bank obtains a pledge from the chairman of the fund’s trustee board to comply with this requirement.
3. No transactions (e.g. remittance, collection of checks, etc.) to any beneficiaries outside Saudi Arabia shall be made, except for transferring money for the purpose of managing the fund’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 obtains the official approval therefor from the Center.
4. The family fund is allowed to invest its money according to the provisions stipulated in the fund’s bylaws.
5. Approval of the bank’s senior management to open the account in cases where required -in accordance with the provisions of the Guidance of Anti Money Laundering and Combating Terrorist Financing-.
b. Requirements and controls for opening and managing sub-accounts:
Sub-accounts may be opened for the various purposes of the fund, such as the collection of Zakat, as follows:
1. Only the documents for opening and managing the main account shall be required.
2. These accounts shall be used only for the purpose for which they were opened.
3. Cash donations or donations made via electronic channels may be accepted as long as these donations come from banking sources inside Saudi Arabia only, through which donor’s information can be retrieved.
4. In case there are branches of the fund, one sub-account may be opened for each branch of the fund, with the primary purpose being "Expenses-Branch Name", as follows:
a. A copy of the approval of the Center (NCNP) for establishing the branch for which a sub-account is to be opened.
b. A copy of the organizational structure decision for the branch and the names of the employees in its management, approved by the Center (NCNP), with Verifying their identities.
c. Copies of the IDs of persons authorized to operate and manage the bank account, and verification of their authorization by identifying them in the decision of the fund's Board of Trustees; such authorization shall allow for joint signature by two officials, and obtaining the approval of the Center when the authorized persons are from outside the board.
d. The sub-account shall be named “Branch of... Fund/Office in (City)-Subaccount of Periodic Advance”.
e. Disbursements from the account shall be limited to the following:
- bank checks withdrawn only by the first beneficiary.
- Transfers made to the bank accounts of beneficiaries of charity inside Saudi Arabia only. The transfer forms shall be filled out by the persons authorized to sign for the advances’ account. In addition, the transfers shall be monitored by the bank to ensure that they go in line with the nature of the branch’s activities.
- Paying salaries of the fund branch’s staff.
- Paying utility bills and government invoices.
- Prepaid cards and deposits may be issued, provided that their issuance is based on a joint signature from the authorized persons on the bank account, and that the prepaid card is funded with a joint signature from the authorized persons
g. Approval of the bank’s senior management to open the account in cases where required -in accordance with the provisions of the Guidance of Anti Money Laundering and Combating Terrorist Financing-.
h. Cash donations or donations made via electronic channels may be accepted as long as these donations come from banking sources inside Saudi Arabia only, through which donor’s information can be retrieved.
• Charitable activities of (civil and military) government bodies:
The bank may open accounts only in Saudi riyal for charitable activities of (civil or military) government bodies. The following requirements and controls shall be met and applied:
1. The bank shall obtain, through SAMA, the approval of the Ministry of Finance for opening a bank account or for maintaining the operation of an existing account, if the account’s funds (or part of them) are from public funds.
2. The bank shall receive a request from the ultimate authority in the government body carrying out the charitable activity or the person he/she authorizes to open the account, if the account’s funds are not from public funds.
3. The bank shall receive from the ultimate authority or his/her authorized representative a letter containing the names of the persons authorized to manage the bank account (by joint signature), provided that such authorized persons are Saudi employees of the same government body.
4. Such government body shall not raise funds or accept donations, aids or gifts from anyone except from its staff.
5. Deposits are accepted in cash, by checks, and through domestic direct transfer. In addition, deposits can be carried out using ATMs, Internet or credit cards. In all deposits, depositor’s information shall be obtained.
6. No ATM cards and/or remittance membership shall be issued/granted for the account.
7. The government body wishing to open such bank account shall undertake that the beneficiaries of such account are from its staff and their families.
8. Disbursement from the account shall be made by checks payable to the first beneficiary, or via wire transfer from the main account to the first beneficiary’s account.
9. Sub-accounts under the main account may be opened. Sub-accounts shall be used only for receiving deposits and making transfers to the main account. Checkbooks shall not be issued for such sub-accounts. Moreover, neither withdrawal nor transfer from these sub-accounts shall be allowed except to the main account.
10. Approval of the manager of compliance department for opening the account shall be sought.
- Civil Society Organizations established pursuant to royal orders:
300.1.5.4 Public Welfare Committees (e.g. Committees of Patients’ Friends, Committees Caring for People with Disabilities or Blind People, Committees of Academic Excellence Awards, Charitable Warehouses Licensed by Regional Governors, and the Like)
- The bank may open accounts for these committees only in Saudi riyal upon obtaining a copy of the committee’s license issued by the concerned official authority as per its jurisdiction, such as the Ministry of Education, the concerned emirate of the region, etc. Bank accounts for such committees shall be opened and managed under a joint signature of the committee chairman (or secretary) and its financial manager. Further, the bank shall obtain copies of the IDs of those two officials (the committee chairman/secretary and the financial manger), along with copies of the IDs of the members of the board of directors (or board of trustees). Copies of the bylaws of the committee/organization shall also be submitted to the bank. Approval of the manager of compliance department for opening the account shall be sought. Additionally, SAMA shall be informed about opening such accounts.
- Bank accounts may be opened for annual or seasonal public welfare activities, such as festivals, celebrations and the like, whose funds are not from the state budget. In this case, the bank shall receive a formal request from the concerned official entity organizing such activity to open the bank account. Such bank account shall be opened and managed under a joint signature of the person authorized to manage the activity and the financial manager; copies of their IDs shall also be obtained. In addition, the bank shall obtain copies of the IDs of the activity committee members. Moreover, the validity period of the account shall be specified; after such period the account shall be closed. Further, approval of the manager of compliance department for opening the account shall be sought. SAMA shall be informed about opening the account.
- Transferring funds from such accounts to parties outside Saudi Arabia is not permitted.
300.1.5.5 Bank Accounts for Collection of Shoppers' Donations of Remaining Halalas (Change) in Favor of Charities
1. Donation collection service shall be restricted to commercial enterprises with commercial registers.
2. Charities that can benefit from such voluntary donation shall be licensed to operate in Saudi Arabia, and its articles of association or bylaws shall permit collection of donations.
3. No commercial enterprise shall be allowed to provide the voluntary donation service of remaining halalas (change) in favor of charities (whether societies, foundations, committees or others) wishing to receive such donations without official permission from the Ministry of Human Resources and Social Development or the authority supervising the charity.
4. The supervisory authority's permission shall include (or have enclosed therewith) the license number for collection of donations and its validity period, as well as the name of the commercial enterprise and its commercial register number.
5. Collection of donations of remaining halalas shall be subject to a two-party contract, i.e. a contract between the commercial enterprise collecting donations of remaining halalas and the charity receiving such donations. The contract shall state obligations of both parties, including that the commercial enterprise will not charge any fees for providing such service.
6. The contract may be extended for more than one period with the consent of the authority supervising the charity. In this case, all previous licenses of donation collection and their related accounts shall be revoked or settled prior to granting renewal approval at the end of the financial year.
7. Donations collected shall be submitted to the concerned charity by a crossed check or a bank transfer to its account at the end of each quarter of the Gregorian calendar year. In addition, the supervisory authority shall be furnished with copies of paid checks or bank transfer receipts.
8. The commercial enterprise shall state in the crossed check or transfer slip the name or account number of the charity and that the amount presented is the donation of remaining halalas by shoppers.
9. The halala-donation procedures, automatic system, and controls of the commercial enterprise shall consider the following:
■ Using a separate special payment means (e.g. cash/sale points) for donation of halalas.
■ Allocating a separate bank account under the name of the commercial enterprise with the clause "remaining halalas" for keeping amounts donated by costumers. This account shall include sub-accounts; each of which shall be designated for one charity with which the commercial enterprise has contracted.
300.1.5.6 Cooperative Associations and Funds
• Cooperative associations
a. Cooperative associations under establishment:
A Saudi Riyal trust account may be opened for a cooperative association under establishment for the purpose of capital raising. The following requirements shall be satisfied:
1. The bank shall receive a letter from the competent authority at the Ministry of Human Resources and Social Development (MHRSD), stating that the cooperative association is under establishment and that the MHRSD agrees on opening an account for the association to raise its capital. The letter shall specify the name of the cooperative association under establishment and the name and ID number of the founding committee’s chairman, who is in charge of communicating with the bank for the account opening. In addition, a copy of the association’s preliminary memorandum of association shall be submitted to the bank with the letter.
2. The trust account shall be opened only for six months. The bank may extend this period for another six months upon receiving a request from the concerned authority at the MHRSD.
3. If the association is not registered and established within the period specified in Paragraph (2) above, amounts deposited in the trust account shall be returned upon the approval of the concerned authority at the MHRSD. The approval shall specify the method of returning such amounts and their recipient.
4. If the association is registered and established, the bank shall fulfill the requirements of Paragraph (b) below and shall convert the trust account into a current account.
b. Licensed cooperative associations:
The bank may open a Saudi Riyal account for cooperative associations upon fulfilling the following conditions and requirements:
1. Receiving a request of the association’s board chairman to open a bank account; the account to be opened shall be managed under a joint signature of the board chairman (or his/her vice-chairman) and the treasurer (principal signatory).
2. Obtaining a copy of the association registration and establishment decision (the association registration certificate) issued by the MHRSD.
3. Obtaining a copy of the entity’s board formation decision that is issued, approved or attested by the MHRSD.
4. Obtaining a copy of the entity’s memorandum of association.
5. Obtaining a copy of the entity’s bylaws.
6. Obtaining copies of the board members’ IDs.
• Cooperative funds:
The bank may open accounts for the cooperative funds upon fulfilling the following conditions and requirements:
1. Obtaining a copy of the decision allowing or approving the establishment of the fund, issued by the concerned minister, general director or sector head.
2. Naming the fund after the organization establishing it.
3. Ensuring that the account is opened and operated by the manager and treasurer of the organization that owns the fund.
4. Obtaining a copy of the regulations governing the fund, issued by the concerned government body.
5. Obtaining a copy of the regulations governing the fund, issued by the concerned government body.
300.1.5.7 Homeowners’ Associations/Housing Societies Licensed by the Real Estate General Authority
This rule has been amended according to the circular No. (42003746), Dated 22/01/1442H, corresponding to 09/09/2020G.Banks may open bank accounts for homeowners’ associations/housing societies upon obtaining the following:
1. A letter from the real estate manager requesting the opening of the account, including the names of those authorized to manage and operate the account, certified by the chairman of the association/society.
2. A copy of the articles of association of the association/society.
3. A copy of the association/society registration certificate issued by the Real Estate General Authority.
4. Copies of the IDs of persons authorized to manage and operate the account.
300.1.5.8 Endowments and Bequests
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..).
300.1.5.9 Cultural, Sports and Social Clubs and Youth Hostels
• Sports clubs licensed by the General Sports Authority:
The bank may open Saudi Riyal accounts for sports clubs licensed by the General Sports Authority upon receiving the following documents:
1. The approval of the Ministry of Finance for opening the account.
2. A copy of the license issued by the General Sports Authority.
3. A copy of the decision to form the club’s board of directors.
4. A copy of the authorization letter by the board of directors (joint signature), allowing specific persons to open and operate the account.
5. Copies of the IDs of the authorized persons and board members.
- Bank accounts for contributions of the club's members of honor and fans may be opened without the approval of the Ministry of Finance. Such accounts may be opened in Saudi Riyal or foreign currencies, but they shall be separated from the government subsidy account.
• Youth hostels:
Requirements for the sports clubs licensed by the General Sports Authority shall also apply to youth hostels.
• Cultural and literary clubs supervised by the Ministry of Culture:
The bank may open Saudi Riyal accounts for cultural and literary clubs supervised by the Ministry of Culture upon receiving the following documents:
1. The approval of the Ministry of Finance for opening the account.
2. A copy of the license issued by the supervisory authority.
3. a copy of the decision to form the club’s board of directors;
4. The authorization letter by the board of directors, allowing specific persons to open and operate the account under a joint signature.
5. Copies of the IDs of the authorized persons and board members.
• Camel Club, and its branches and offices:
The bank may open Saudi Riyal accounts for camel club and its branches and offices upon receiving the following documents:
1. A copy of the decision to form the club’s board of directors, issued by the Council of Ministers.
2. A copy of the authorization letter by the board of directors, allowing specific persons to open and operate the account.
3. Copies of the authorized signatories’ IDs.
4. Copies of the board members’ IDs.
5. Payment from the main account shall be made only for the purposes for which the account was established.
300.1.5.10 Public Corporations and Public Sector Institutions
The bank may open accounts for public corporations and public institutions (see Appendix "B" for further information on such entities and their names) upon obtaining the following documents:
1. A copy of the decision to form the entity’s board of directors, issued by the Council of Ministers.
2. A copy of the authorization letter by the board of directors, allowing specific person(s) to operate the account, along with copies of those persons’ IDs and their specimen signatures.
300.1.5.11 Chambers of Commerce and Industry
The bank may open accounts for chambers of commerce and industry upon obtaining the following documents:
1. A copy of the decision to form the chamber’s board of directors.
2. A copy of the authorization letter by the board of directors, allowing specific person(s) to open and operate the account, along with copies of those persons’ IDs and their specimen signatures.
300.1.5.12 Building, Renovating or Expanding Small and Large Mosques
The bank may open bank accounts designated for building, renovating or expanding small or large mosques. The following requirements shall be fulfilled:
1. The bank shall receive a letter from the Ministry of Islamic Affairs, Dawah and Guidance (MoIA) or any of its branches in the concerned region, requesting the opening of a bank account and indicating its purpose.
2. The bank shall obtain a copy of the approval of the MoIA or any of its branches in the concerned region for building, renovating or expanding a small or large mosque.
3. The bank shall obtain the decision made by the MoIA or any of its branches in the concerned region to form a committee to supervise the mosque construction, renovation or expansion process. The committee formed shall be chaired personally by the branch manager of the MoIA and include two members of the officials of MoIA branch in the concerned region.
4. The account shall be named “Branch of the Ministry of Islamic Affairs, Dawah and Guidance in... (building, renovating or expanding) (name of the mosque)”.
5. The account shall be operated personally by the manager of MoIA branch in the concerned region (principal signatory) with one or both of the committee members indicated above.
6. The bank shall obtain copies of the IDs of committee members who are authorized to sign for the account.
7. If funds are donations, the approval of the concerned authority shall be submitted.
8. Disbursement from the account shall be made only by checks, under a joint signature. In addition, ATM cards and/or credit cards shall not be issued for this account.
9. The account shall be valid for a period identical to the period specified by the MoIA for the mosque construction, renovation or expansion. Should there be a need to extend the validity period of the account, a letter to this effect shall be submitted to the bank by the MoIA or its concerned branch.
10. If account funds are from the state budget, as per a request from the MoIA, the approval of the Ministry of Finance shall be communicated to the bank through SAMA.
11. Approval of the manager of compliance department for opening the account shall be sought.
300.1.5.13 National Societies and Committees
The bank may open accounts for national societies and committees, such as the National Society for Human Rights and the National Prevention of Blindness Committee, upon completing the following:
1. Receiving a request from the chairman of the society/committee for opening a bank account.
2. Obtaining a copy of the royal approval or the resolution of the Council of Ministers, allowing the society or committee to exercise its activities.
3. Obtaining a copy of the articles of association of the society/committee.
4. Obtaining a copy of the society’s/committee’s regulations governing its financial affairs.
5. Obtaining copies of the IDs of society’s/committee’s executive council members.
6. The names of authorized signatories shall be determined by the chairman of the society/committee. The bank shall obtain copies of those signatories’ IDs and their specimen signatures. Such copies shall be attested as true copies of the original by both the society/committee and the bank. Changing the authorized signatories requires sending a letter from the chairman of the society/committee to the bank where the account is opened.
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.
300.1.5.14 Trial and Enforcement Courts
This rule has been amended according to the circular No. (42036451), Dated 01/06/1442H, corresponding to 14/01/2021G.Bank accounts for trial courts, such as commercial courts and family courts, may be opened for the purpose of managing the cases pending before such courts and for the enforcement courts for the purpose of depositing execution funds as follows:
1. The bank shall receive a letter from the Deputy Minister of Justice for Enforcement or his authorized representative (for the bank accounts of enforcement courts), or a letter from the Deputy Minister of Justice for Judicial Affairs or his authorized representative (for the bank accounts of trial courts). The letter shall be addressed to the bank, requesting the opening of a bank account and stating the names of persons authorized to manage and operate the account under a joint signature (two signatories are required).
2. The bank shall obtain copies of the authorized signatories’ IDs and their specimen signatures.
3. The account shall be separate from other accounts of each court.
4. Disbursement from the account shall be made by checks payable to the first beneficiary, by transfers to the collection accounts such as the account opened under the name “Ministry of Justice/Deputyship for Enforcement) and designated for receiving funds via SADAD system, or by transfers to beneficiaries’ accounts. Where checks are used, the purpose of the check and the case number and date shall be written on the check.
5. ATM cards and/or credit cards shall not be issued for such accounts.
6. Transferring funds from these accounts to beneficiaries outside Saudi Arabia shall not be allowed. The exception to this rule is when the beneficiary is a foreign (natural or legal) person residing outside Saudi Arabia and the approval of the concerned deputy minister or the chief judge is obtained for the transfer.
300.1.5.15 Property Conveyancing Processes
The bank may open collection accounts for the purpose of property conveyancing and for enforcement of related decisions. The following requirements and controls shall be met and applied:
1. The bank shall receive a letter from the Minister of Justice or his delegate, specifying the names of persons (two as a minimum) authorized to manage the account under a joint signature.
2. The account shall be named “Property Conveyancing for....”. The account shall also be separate from the accounts of the Ministry of Justice.
3. The bank shall obtain copies of the authorized signatories’ IDs and specimen signatures.
4. Bank transfers related to the electronic property conveyancing, whether made to the collection accounts opened under the name (Property Conveyancing) or to the accounts of beneficiaries, shall be made using electronic banking services. Withdrawal from the account shall be made only by checks payable to the first beneficiary. The purpose of the check and the ID number of the payee shall be written on the check.*
5. ATM cards and/or credit cards shall not be issued for such accounts.
6. Transferring funds from these accounts to beneficiaries outside Saudi Arabia shall not be allowed.
This paragraph has been amended by circular No. (42009020), dated 18/02/1442H, corresponding to 27/09/2020G.
300.1.5.16 Civil Rights–Personal Debt Settlement Account
Bank accounts in Saudi Riyal only may be opened for any verdict execution administrations, divisions or sections, or for rights units at police centers. The following requirements shall be fulfilled:
1. The bank shall receive a letter from the head of the verdict enforcement administration, division or section, or from the head of the police center, requesting opening a bank account and specifying its purpose and authorized signatories.
2. The account name shall be “the Ministry of Interior, Public Security, Verdict Enforcement Administration in … (Region/City/Governorate)-Personal Debt Settlement Account”.
3. The account shall be operated under a joint signature of at least two persons. One of them shall be the head of the verdict enforcement administration, division or section (or the head of the police center) or his/her deputy. The other signatory shall be the treasurer or his/her deputy (principal signatory).
4. The bank shall obtain copies of the authorized signatories’ IDs and their specimen signatures.
5. Funds shall be deposited in the account only by the debtor, his/her family, and their representatives via the following means:
■ Bank checks in the following form: “Pay to the order of Civil Rights Department in … Region/ City/Governorate-Personal Debt Settlement Account”. The purpose of the check shall be written on it as follows: “Repaying the debt of... (debtor’s name and national ID number), Case/Verdict/Resolution No. ... dated ...”.
■ Bank transfers, provided that all the required information of the transferor and the transfer purpose are indicated.
■ Points of sale.
■ Cash acceptance machines.
6. Withdrawal from the account shall be made only by checks signed by the authorized persons mentioned in point (3) above. The check shall be in the following form: “Pay to... (name of the creditor)”. The purpose of the check shall also be written on it as follows: “Repaying the debt of ... (debtor’s name and national ID number), Case/Verdict/Resolution No. ... dated...”.
7. ATM cards and/or credit cards shall not be issued for this account. Moreover, fund transfer from such account shall not be allowed.
8. The compliance officer at the bank shall ensure that all the abovementioned requirements are fulfilled and documents are verified.
9. The bank shall send a free detailed account statement to the concerned civil rights department every month, or whenever requested.
300.1.5.17 Scientific Societies
This rule has been added pursuant to the circular No. (41039895), Dated 08/06/1441H, corresponding to 02/02/2020G.The bank accounts of scientific societies may be opened as follows:
1. The bank shall receive a letter from the chairman of the society’s board of directors requesting opening of the account. The letter must specify the persons authorized to manage and operate the account under a joint signature of the chairman (or his/her deputy) and the chief financial officer.
2. The bank shall receive a copy of the university council’s decision to form the society.
3. The bank shall receive a copy of the decision to form the board of directors approved by the university council.
4. The bank shall receive a copy of the society’s bylaws.
5. The bank shall receive copies of the IDs of the members of the board of directors and those authorized to manage and operate the account.
6. Acceptance of deposits shall be as determined by the bylaws (or financial regulations) of the society.
7. Transferring money to or receiving money from outside Saudi Arabia shall not be accepted, except for transferring money for the purpose of managing the society’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 university council.
8. ATM cards and/or credit cards shall not be issued for such accounts.
300.1.5.18 Professional Associations
This rule has been added pursuant to the circular No. (41039895), Dated 08/06/1441H, corresponding to 02/02/2020G.The bank accounts of professional associations may be opened as follows:
1. The bank shall receive a letter from the Secretary General of the association, requesting the opening of the account. The letter must specify the persons authorized to manage and operate the account under a joint signature of the chairman of the board (or his/her deputy) and the secretary general.
2. The bank shall receive a copy of the decision to form the board of directors approved by the government authority "competent authority” that supervises the work of the association.
3. The bank shall receive a copy of the association’s bylaws.
4. The bank shall receive copies of the IDs of the members of the board of directors and those authorized to manage and operate the account.
5. Acceptance of deposits shall be as determined by the bylaws (or financial regulations) of the association.
6. Transferring money to or receiving money from outside Saudi Arabia shall not be accepted, 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 of the competent authority.
7. ATM cards and/or credit cards shall not be issued for such accounts.
300.1.6 Rules for Foreign Embassies, Consulates, Diplomats, Airlines, Multilateral Organizations, and their Employees
300.1.6.1 Embassies, Consulates, and their Educational Institutions and Employees
- Foreign embassies and consulates and educational institutions operating under their auspices are permitted to open bank accounts. However, they are not permitted to open accounts for or on behalf of other entities, including businesses and charities.
- The bank shall receive a letter from such diplomatic entities, requesting to open a bank account. The letter shall specify the name and nature of the account as well as names of residents authorized to operate the account. Copies of the diplomatic cards of such authorized residents and of the ambassador/consul shall be authenticated and stamped by the embassy/consulate and attached to the letter. Alternatively, the letter may be certified by the Ministry of Foreign Affairs, authenticating the identity of official in charge and the name of embassy. In either case, the entity shall also complete the account opening agreement and submit it to the bank. If the embassy is under formation in Saudi Arabia, the bank may open an account for it upon receiving a letter from the Ministry of Foreign Affairs. The letter shall specify the name of the embassy, the name of the person authorized to open the account, and the type and number of his/her ID. The bank shall update the information related to the embassy and its staff once the embassy/consulate is set up.
300.1.6.2 Resident Diplomats
Subject to the provisions of the Anti-Money Laundering Law and its Implementing Regulations, the Law of Terrorism Crimes and Financing and its Implementing Regulations, and the guidelines issued thereunder concerning politically exposed persons, bank accounts may be opened for resident diplomats working at foreign embassies and consulates. Such diplomats must present to the bank copies of their diplomatic cards, issued by the Ministry of Foreign Affairs, and copies of their diplomatic passports for verification. The bank shall keep such copies in the customer information file. Further, the bank may open accounts for diplomats whose embassies in Saudi Arabia are still under establishment upon receiving a letter from the Ministry of Foreign Affairs. The letter shall specify the name of the embassy, the name of the diplomat, and his/her ID information. A copy of his/her diplomatic passport shall also be submitted to the bank. Once the embassy is set up, the customer information file shall be updated.
300.1.6.3 Diplomats on Temporary Visit
The bank may open accounts for diplomats visiting Saudi Arabia to carry out official temporary tasks. In addition to obtaining documents indicated in Rule (300.1.6.2) above, the bank shall receive from or through the embassy a letter of the Ministry of Foreign Affairs, specifying the term of the diplomat’s task. Moreover, approval of the manager of the bank’s compliance department for opening the account shall be sought. SAMA must be informed about opening the account. Such accounts must be closed when the visit (the assignment) term expires. Upon the expiration of the visit term and if no extension is granted and the account balance remains unsettled, the bank shall then obtain a letter from the customer, addressed to the bank and attested by the concerned embassy. The letter shall indicate that the account holder has left Saudi Arabia and shall specify the suitable method to return the account balance to him/her. However, the bank is not permitted to open accounts for visitors coming for other purposes other than the official tasks or visitors coming to engage in official tasks but for a few days.
300.1.6.4 Foreign Airlines and their Employees
Foreign airlines can open bank accounts to serve their basic objectives. However, they are not permitted to open accounts for or on behalf of any other juristic entities, including corporations, organizations, businesses and charities. To open accounts for foreign airlines, the following requirements shall be met:
1. The person authorized to open the bank account for the airline shall be a resident of Saudi Arabia. If such person is non-Saudi, he/she must be under the sponsorship of the company or present the license of the agency (for agents).
2. The bank shall receive a copy of the approval or permission of the General Authority of Civil Aviation.
3. The bank shall receive a copy of the license issued by the Ministry of Investment to the company if the company directly undertakes its business without an agent, except GCC airlines.
4. The bank shall obtain a copy of the company’s commercial register according to which the business is performed.
5. The account shall be used only for receiving business proceeds and for paying expenses to agents and other suppliers.
- Accounts of airlines employees shall be subject to Rule (200.1).
300.1.6.5 Rules for International Multilateral Organizations
This rule has been amended according to the circular No. (41041589), Dated 15/06/1441H, corresponding to 09/02/2020G.
• The Muslim World League and its affiliated councils and organizations:
• The Muslim World League (MWL):
Banks accounts may be opened for the Muslim World League (MWL) as follows:
I. Main account:
a. Requirements for opening main account:
1. The bank shall receive a letter from the Secretary General or Vice Secretary General of the MWL, requesting opening of the account. The letter shall define the purpose of the account, provided that the persons authorized to operate it under a joint signature are the Secretary General or Vice Secretary General of the MWL and the chief financial officer (principal signatory).
2. The bank shall obtain a copy of the MWL Saudi Arabia Headquarters Agreement and the appended protocol.
3. The bank shall obtain a copy of the decision to form the MWL board of directors, appoint its executives and determine their powers.
4. The bank shall obtain copies of the IDs of the Secretary General of the MWL, Vice Secretary General, chief financial officer and board members. Such copies shall be attested by the MWL.
5. Only one main account shall be opened under the entity’s name as stated in its Headquarters Agreement for deposit, withdrawal and transfer.
6. Approval of the manager of compliance department at the bank for opening the account.
7. Telephone banking and e-banking services shall be limited to balance inquiry and transfer from sub-accounts to the main account only.
8. SAMA shall be informed when the account is opened.
b. Deposit controls:
1. Deposited cash amounts to the MWL main account and sub-accounts from MWL official staff may be accepted.
2. The bank may accept cash deposits, checks and transfers to the main account and sub-accounts from non-official staff of MWL or MWL branches inside Saudi Arabia only if they are gift, subsidy or endowment and not donation.
3. Amounts incoming to the MWL main account or sub-accounts from outside Saudi Arabia clearly stating their purpose as gifts, subsidy or donation may be accepted. Such amounts shall not be deposited in the MWL accounts unless after the MWL submits to the bank the approval of the competent authority in Saudi Arabia to deposit the amounts, whether they are, for example, transfers or checks under collection.
c. Withdrawal controls:
Disbursement from the main account shall be limited only to checks or transfers to entities inside or outside Saudi Arabia. Transactions (remittance, issuance of checks, etc.) made to outside Saudi Arabia shall be only for the purpose of managing the MWL or implementing its programs or projects.
d. Balance investment:
The MWL may open accounts to invest its excess funds in activities that have financial return to help achieving its objectives.
II. Sub-accounts for MWL branches and its various activities:
- Sub-accounts of or linked to the MWL main account for the same purposes of the branches or the activities of the MWL shall be opened after meeting and providing the following conditions and documents:
1. A letter from the MWL Chairman or the Vice Chairman to the bank to open the sub-account specifying the purpose and persons authorized to manage the account.
2. A copy of the official approval from the competent authority in Saudi Arabia to open a MWL branch or practice sub-activity.
3. Copies of the authorized signatories IDs attested by the MWL.
4. The MWL Chairman or the Vice Chairman may authorize members from the MWL staff to manage the account as the authorization shall be limited to making transfers from the sub-accounts to the main account.
- Documents required to open and update the main account shall be sufficient for sub-accounts as they are nested under the main account.
• Institutions and organizations affiliated with the MWL, including the International Organization for Relief, Welfare and Development:
Bank accounts may be opened for such entities as follows:
I. Main account:
a. Requirements for opening a main account:
1. A letter from the Chairman of the MWL affiliated entity to the bank requesting opening a main account or maintaining and updating the existing account specifying the purpose of the account, provided that the persons authorized to manage the account under a joint signature are the Chairman or the Vice Chairman of the entity and the chief financial officer (principal signatory).
2. A copy of the MWL Saudi Arabia Headquarters Agreement and the appended protocol.
3. A copy of the decision to form the Board of Directors of the entity and the appointment of its officials and their powers.
4. A copy of the by-law and procedures of the entity.
5. Copies of the IDs of the Chairman, Vice Chairman, Chief Financial Officer and the board members attested by the entity.
6. One main account only shall be opened under the entity’s name as stated in the license for deposit, withdrawal and transfer.
7. Approval of the manager of compliance department at the bank for opening the account.
8. Telephone banking and e-banking services shall be limited to balance inquiry and transfer from sub-accounts to the main account only.
9. SAMA shall be informed when the account is opened.
b. Deposit controls:
1. Deposited cash amounts to the entity’s main account and sub-accounts from MWL official staff may be accepted.
2. The bank may accept cash deposits, checks and transfers to the main account and sub-accounts from non-official staff of the entity or its branches inside Saudi Arabia only if they are gift, subsidy or endowment and not donation.
3. Amounts incoming to the entity main account or sub-accounts from outside Saudi Arabia clearly stating their purpose as gifts, subsidy or donation may be accepted. Such amounts shall not be deposited in the entity accounts unless after entity submits to the bank the approval of the competent authority in Saudi Arabia to deposit the amounts, whether they are, for example, transfers or checks under collection.
c. Withdrawal controls:
Disbursement from the main account shall be limited only to checks or transfers to entities inside or outside Saudi Arabia. Transactions (remittance, issuance of checks, etc.) made to outside Saudi Arabia shall be only for the purpose of managing the MWL or implementing its programs or projects.
d. Balance investment:
The entity may open accounts to invest its excess funds in activities that have financial return to help achieving its objectives.
II. Sub-accounts for the branches of the institution or organization and their various activities:
- Sub-accounts of or linked to the entity’s main account for the same purposes of the branches or the activities of the entity shall be opened after meeting the following conditions and documents:
1. A letter from the entity’s Chairman or the Vice Chairman to the bank to open the sub-account specifying the purpose and persons authorized to manage the account.
2. A copy of the official approval from the competent authority in Saudi Arabia to open a branch of the entity or practice sub-activity.
3. The entity’s Chairman or the Vice Chairman may authorize members from the entity staff to manage the account as the authorization shall be limited to making transfers from the sub-accounts to the main account.
4. Copies of the authorized signatories IDs attested by the entity.
- Documents required to open and update the main account shall be sufficient for sub-accounts as they are nested under the main account.
• World Assembly of Muslim Youth (WAMY):
Bank accounts shall be opened for the WAMY upon fulfilling the following conditions and procedures:
I. Main account:
a. Requirements for opening a bank account:
1. A letter from the president of the WAMY affiliated entity to the bank requesting opening a main account or maintaining and updating the existing account specifying the purpose of the account and that the persons authorized to manage the account are the Chairman or Secretary General with joint signature and the Chief Financial Officer with main signature.
2. A copy of the WAMY Saudi Arabia Headquarters Agreement.
3. A copy of the protocol appended to the WAMY Headquarters Agreement.
4. A copy of the decision to form WAMY Board of Trustees and the appointment of its officials and their powers.
5. A copy of the by-law and procedures of WAMY.
6. The authorized persons must fulfil the account opening agreement (contract) determining the purpose of the account, the sources of income and the real beneficiaries.
7. Copies of the IDs of the Chairman, Secretary General, Chief Financial Officer and the members of the Board of Trustees attested by the entity.
8. One main account only shall be opened under WAMY’s name as stated in Headquarters Agreement for deposit, withdrawal and transfer. The account shall be opened at the bank head office or main branch in the region.
9. Approval of the CEO/general director and the manager of compliance department of the bank to open the account or to maintain and update the existing account.
10. Telephone banking and e-banking services shall be limited to balance inquiry and transfer from sub-accounts to the main account only.
11. SAMA must be informed when the account is opened.
b. Deposit controls:
1. Deposited cash amounts to WAMY’s main account and sub-accounts from WAMY official staff may be accepted.
2. The bank may accept cash deposits, checks and transfers to the main account and sub-accounts from non-official staff of WAMY or WAMY branches inside Saudi Arabia only if they are gift or subsidy.
3. Deposits or transfers for donation incoming to the bank from inside Saudi Arabia shall not be accepted.
4. Amounts incoming to the WAMY’s main account or sub-accounts from outside Saudi Arabia clearly stating their purpose as gifts, subsidy or donation may be accepted. Amounts received by the bank to be transferred to other banks operating inside or outside Saudi Arabia may also be accepted. Such amounts shall not be deposited in the WAMY’s accounts or transferred to other banks unless after the WAMY submits to the bank the approval of the competent authority in Saudi Arabia to deposit the amounts, whether they are, for example, transfers or checks under collection.
c. Withdrawal controls:
Disbursement from the main account shall be limited only to checks or transfers to entities inside or outside Saudi Arabia through the main account or by the remittance membership linked to the main account for transfers.
d. Balance investment:
WAMY may open accounts to invest its excess funds in activities that have financial return to help achieving its objectives.
II. Sub-accounts for WAMY branches and their various activities:
Sub-accounts of or linked to WAMY’s main account for the same purposes of the branches or the activities of WAMY shall be opened after meeting and providing the following conditions and documents:
1. A copy of the official approval from the competent authority in Saudi Arabia to open a branch of WAMY or practice sub-activity.
2. A letter from WAMY Chairman or Secretary General to the bank to open the sub-account specifying the purpose and persons authorized to manage the account.
3. WAMY Chairman or Secretary General may authorize members from WAMY staff to manage the account as the authorization shall be limited to making transfers from the sub-accounts to the main account.
4. Copies of the authorized signatories IDs attested by WAMY.
5. Documents required to open and update the main account shall be sufficient for sub-accounts as they are nested under the main account.
• Islamic Development Bank (IsDB):
Current bank accounts shall be opened for IsDB upon fulfilling the following conditions and procedures:
1. Request to open the account by a letter from the President or Vice President of the bank.
2. A copy of the bank Saudi Headquarters Agreement (permission).
3. Signature shall be joint.
4. Copies of the IDs of the authorized persons, the bank President or Vice President according to the request submitted.
5. Check books may be provided to the bank and its employees to cover the administrative expenses. The bank accounts are not required to be correspondent.
6. A copy of the procedures of money laundry and terrorist financing applied in the bank.
• Organisation of Islamic Cooperation (OIC) and its affiliated entities:
Bank accounts shall be opened for OIC upon fulfilling the following conditions and procedures:
1. Obtain a request to open the account from OIC Secretary-General or Vice Secretary-General specifying the names and functions of the persons authorized to open and manage the account of OIC or the affiliated entity.
2. A copy of the OIC Saudi Arabia Headquarters Agreement (or any other document for this purpose).
3. Signature shall be joint.
4. Copies of the IDs of the authorized persons, OIC Chairman or Vice-Chairman according to the request submitted.
5. OIC may transfer money related to its programs or projects to accounts outside Saudi Arabia.
• Permanent Mission of the Russian Federation to the Organisation of Islamic Cooperation:
Bank accounts shall be opened for the Mission after meeting and providing the following conditions and documents:
1. Submit a request approved by OIC to open an account in SAR or other currency to the bank in which the account is to be opened.
2. A certified copy of the approval of opening the Mission Office in Saudi Arabia stating the purpose of the Mission to OIC.
3. A letter from the Chairman of the Mission approved by the OIC specifying the person or persons authorized to manage the account.
4. Copies of the diplomatic cards or residence cards (Iqama) of the authorized persons to open and manage the account according to the identity card issued to them in Saudi Arabia.
5. The Mission may only receive and transfer money related to its purposes and programs.
• Arab Red Crescent and Red Cross Organization (ARCO):
Bank accounts shall be opened for ARCO upon fulfilling the following conditions and procedures:
1. Obtain a request to open the account from the Secretary-General or Vice Secretary-General of ARCO, office or program in Saudi Arabia.
2. A copy of ARCO Saudi Headquarters Agreement (permission).
3. Signature shall be joint.
4. Copies of the IDs of the persons authorized to manage the account, in addition to the ID of the Chairman or Vice-Chairman of ARCO, office or program according to the request submitted.
5. Approval of the CEO/general director and the manager of compliance department to open the account.
6. SAMA must be informed when the account is opened.
7. OIC may transfer money related to its programs or projects to accounts outside Saudi Arabia.
• Other international multilateral organizations and funds:
Bank accounts shall be opened according to the following conditions for international multilateral organizations and funds of a political, developmental or service nature, such as the United Nations, the Islamic World Conference, the World Bank and its affiliates, the International Monetary Fund and its affiliates, the Gulf Cooperation Council, the Arab League and Arab satellite broadcasters:
1. Obtain a request to open the account from the Chairman, Deputy or Vice-Chairman.
2. A copy of ARCO Saudi Headquarters Agreement (permission).
3. Signature shall be joint.
4. Copies of the IDs of the organization/fund Chairman, Deputy or Vice-Chairman according to the request submitted.
• Personal accounts of staff of such organizations:
The bank shall not require SAMA approval for opening accounts for the permanent staff of such organizations as the conditions and procedures stated in Rule (200-1) shall be applicable. However, conditions stated in Rule (300-1-6) shall be applicable to diplomats.
300.1.6.6 Bank Accounts of Relief Committees and Campaigns
This rule has been amended according to the circular No. (42060703) Dated 25/08/1442H, corresponding to 07/04/2021G. Please refer to the Arabic version of this rule to read the last updated version.Bank accounts shall be opened for designated relief campaigns and committees, as well as for the King Salman Humanitarian Aid and Relief Center "the Center", for the purposes of managing its operations and humanitarian relief campaigns abroad as follows:
1. A copy of the approval from His Majesty the King for the establishment of the designated fundraising committee/campaign, and the approval of SAMA to open one main account under the name of the committee or campaign, after determining the persons authorized for the account (joint signatures) and providing copies of their IDs and specimen signatures. If the account is to be opened for the Center, a letter must be obtained from the General Supervisor of the Center addressed to the bank, determining the persons authorized to manage the account (at least two persons) with joint signatures, and providing copies of their IDs and specimen signatures. The request must specify that the sources of the account’s funds do not include amounts from the state budget or the Center’s budget.
2. Authorized persons in the center, or in the relief committees and campaigns are permitted to open sub-accounts linked to the main account for the purposes of collecting donations and conducting relief activities.
3. The bank accounts of the center for the purposes of employee salaries, operational expenses, or its humanitarian activities, which are funded by the state’s general budget or the center’s budget, shall be separated from the accounts of the center that are funded from sources other than the state’s budget or the center’s budget. The instructions outlined in Rule (500-1-1) regarding the opening and management of government entity accounts shall be applied to the center's accounts that are funded by the state’s budget or the center’s budget.
4. Deposits into such accounts may be accepted through all means, including cash, checks, or local transfers. The center is also permitted to accept electronic donations through electronic payment gateways via different methods, including credit cards (both domestically and internationally).
5. ATM or credit cards shall not be issued for such accounts.
6. Money transfer to accounts outside Saudi Arabia or receiving transfers from there shall not be accepted after obtaining approval from SAMA, except for the Center's accounts, to which this paragraph does not apply.
300.1.6.7 Bank Accounts of Committees of Friendship and Foreign Official Relationships of Saudi Arabia
Bank accounts shall be opened for such committees according the following controls:
1. An official directive from the Minister of Foreign Affairs approving the establishment of the committee.
2. A direction from SAMA to the bank, stating the name and purpose of the account and the names of persons authorized to manage the account.
3. Copies of the IDs of the authorized persons or a letter from the Ministry of Foreign Affairs containing their personal data.
300.1.6.8 Economic and Technical Liaison Offices in Saudi Arabia
Bank accounts shall be opened for foreign economic and technical liaison offices and their branches licensed by the Ministry of Investment in Saudi Arabia upon meeting and providing the following conditions and documents:
1. A request from the director of the office explaining the purpose of the account.
2. A copy of the license issued for the office by the Ministry of Investment.
3. Signatures of the persons authorized to manage the account and copies of their IDs.
4. The account name shall be (the economic/ technical liaison office of. ) and shall be linked to the validity of the license and renewable by a letter for extension or renewal issued by the Ministry of Investment.
5. The account shall be managed by Saudis who work at the office. If the account is managed by non-Saudis, they must be residing in Saudi Arabia under valid residence permits (Iqama).
6. The account shall be used only for the purposes specified in the license. Such offices shall not open accounts for or on behalf of other entities, such as companies or charities.
7. The persons authorized to manage the account shall only be replaced by the approval of the embassy of the office country and the approval of the Ministry of Investment.
8. Approval of the manager of compliance department for opening the account shall be sought.
9. SAMA must be informed when the account is opened.
300.1.7 Bank Accounts for Liquidation and Financial Restructuring
The bank may open bank accounts for liquidation, for depositing the proceeds of the sale of the bankruptcy assets covering the debtor’s debt in case of a financial restructuring under the Bankruptcy Law, or for liquidation under the Companies Law. The following conditions and documents shall be met and provided:
I. Commencement of any liquidation procedures under the provisions of Bankruptcy Law
1. The bank shall receive the court order that includes the following:
- Commencing any liquidation or administrative liquidation procedures against a natural or juristic person.
- Appointing one or more bankruptcy officeholder and specifying their names and powers, or forming a bankruptcy committee to manage the administrative liquidation procedures.
2. The bank shall receive a request to open the account from the liquidation officeholder or the representative of the bankruptcy committee, as the case may be, stating the purpose of the account.
3. The name of the account shall be (name of the natural or juristic person under liquidation... - Liquidation Account).
4. The bank shall receive copies of the commercial register and memorandum of association and its annexes for the juristic person under liquidation, and a copy of the national ID or Iqama for the natural person under liquidation.
5. The bank shall receive copies of the national ID and commercial register or license of the liquidation officeholder. In case of administrative liquidation, a letter shall be obtained from the bankruptcy committee that includes the data of the person authorized to manage the account and a copy of his/her national ID.
6. The account shall be operated by the liquidation officeholder or the representative of the bankruptcy committee, as the case may be, in accordance with the court order to commence any liquidation procedure.
7. Checkbooks may be issued for such accounts at the request of the liquidation officeholder or the representative of the bankruptcy committee, as the case may be. ATM cards and/or credit cards shall not be issued for such accounts unless the court order to commence the procedure otherwise provides.
8. The bank, the liquidation officeholder or the representative of the bankruptcy committee, as the case may be, must confirm that the IDs and documents are true copies of the originals.
9. Account validity:
a. Liquidation procedure: The account shall be valid until a court order to complete the procedure is issued. The account shall be closed by a letter from the liquidation officeholder based on the court order to complete the liquidation procedure.
b. Administrative liquidation procedure: The account shall continue to be valid according to the period stipulated in the Bankruptcy Law. Renewal shall be effected after the end of this period by a letter from the bankruptcy committee based on a court order, stating that the procedure is not completed and the period needed for completion. The account shall be closed upon the completion of the administrative liquidation procedure by a letter from the bankruptcy committee, stating that the committee has issued a decision to complete the procedure.
II. Liquidation for the termination reasons stated in Article 16 of Companies Law
1. The court order to liquidate a company shall be obtained. In case of a voluntary liquidation by partners, the decision issued by the partners or general assembly of the company to approve liquidation shall be obtained.
2. A request from the liquidator to open a bank account shall be obtained.
3. The liquidator (name and restrictions on powers) shall be appointed by a court order or decision of the company’s partners or general assembly.
4. The bank shall receive copies of the commercial register and memorandum of association and its annexes of the company under liquidation.
5. The bank shall receive copies of the IDs of the owners of the company under liquidation, whose names are mentioned in the memorandum of association and its annexes. Listed joint-stock companies are excluded from this requirement.
6. The bank shall receive copies of liquidator’s national ID and the commercial register or license.
7. The name of the account shall be (name of company under liquidation... -Liquidation Account).
8. The account shall be operated by the liquidator or as stated in the company liquidation decision.
9. Checkbooks may be issued for such accounts at the request of the liquidator. ATM cards and/or credit cards shall not be issued unless the company liquidation decision states otherwise.
10. The bank and the liquidator shall confirm that the IDs and documents are true copies of the originals.
11. The validity period of the account shall be as set forth in the court liquidation order. In case of voluntary liquidation, such period shall not exceed a maximum period of five years. Renewal shall be effected by a letter from the liquidator based on a court order, stating that liquidation procedure has not been completed and the period needed for completion.
12. The account shall be closed upon completion of liquidation procedure by a letter from the liquidator, to which a statement confirming the approval of the entity appointing the liquidator on the liquidation completion report is attached.
III. Accounts for proceeds from the sale of the bankruptcy assets covering the debtor's debt in case of financial restructuring
1. The bank shall receive the court order that includes the following:
- The commencement of the financial restructuring procedure “the procedure” for the natural or juristic person “the debtor”.
- The appointment of a financial restructuring officeholder “the officeholder".
2. The bank shall receive a request to open the account from the officeholder, stating the purpose of the account “Depositing the proceeds of selling the bankruptcy assets covering the debtor’s debt for which the procedure is commenced” and the validity period of the account. The account shall be closed based on the court order to complete the procedure.
3. The bank shall obtain a copy of and verify the national ID of the officeholder.
4. The name of the account shall be “Account of proceeds from sale of bankruptcy assets covering the debt of (name of the debtor) subject to financial restructuring”.
5. The account shall be operated by the officeholder specified in the court order in accordance with the provisions of Article 82 of the Bankruptcy Law. Checkbooks may be issued for such accounts at the request of the officeholder. ATM cards and/or credit cards shall not be issued for such accounts.
6. The bank shall receive an undertaking from the officeholder to notify the bank once a court order to dismiss him/her or accept his/her resignation request is issued. The bank must enable the new officeholder to manage the account in accordance with the provisions of this clause after receiving the court order appointing him/her. The bank must also obtain a copy of and verify the national ID of the new officeholder.