500.1.2 Rules for Opening Bank Accounts for Government Entities to Receive Donations for their Own Account
The bank may open Saudi Riyal accounts for government entities to receive gifts and donations for their own account. The following requirements shall be met:
1. The request to open a bank account shall be submitted after obtaining the approval of the Ministry of Finance notified through SAMA. Such request shall indicate that the purpose of opening the account is to receive donations for the government entity.
2. Two signatories shall be determined by the concerned minister or the head of the entity, in addition to the financial controller in the government entity. The bank shall obtain IDs copies and specimen signatures of such authorized persons. Those copies shall be attested as true copies of the original by both the government entity and the bank. Changing the signatories or financial controller requires sending a letter from the concerned minister or the head of the entity or his authorized representative to the bank where the account is opened.
3. Deposit in the account shall be by checks only. The name of the payee shall be the government entity, and such checks shall be presented for deposit through the signatories.
4. A checkbook shall be requested by an official letter signed by those authorized to withdraw funds.
5. Withdrawal from the account shall be made only by checks signed jointly by the authorized signatories and the financial controller.
This rule has been amended according to the circular No. (45070397), Dated 13/11/1445H, corresponding to 20/05/2024G.500.1.2.1 Bank Accounts of Government Entities, Designated for Activities and Services Financed Through Sources Other Than the State Budget
The bank may open separate accounts for academic and specialized government entities (e.g. universities, institutes and research centers) for the purposes of research works, studies, consultation, specialized services and the like that are funded by beneficiaries (not through the state budget). The following requirements shall be met:
1. The bank shall receive a request from the rector/head of the entity (university, institute, scientific center, and the like) to open an account; such request shall indicate that the account is designated for an activity to be funded through sources other than the state budget.
2. The government entity shall specify the purpose of the account and, if possible, the reasons supporting being contracted with or assigned to carry out advisory or technical tasks.
3. The name of the account shall reflect its purpose.
4. Signatories shall be determined by the government entity’s rector/head. The bank shall obtain IDs copies and specimen signatures of such authorized persons. Those copies shall be attested as true copies of the original
5. by both the government entity and the bank. Changing the signatories requires sending a letter from the entity’s rector/head to the bank where the account is opened.
6. The bank shall obtain a copy of the government entity’s regulations governing the financial affairs of the financed activity (university, institute ...).
7. The account shall be opened for the duration of the project or for a period of one year where the duration is not defined. The validity of the account may be extended for another period/additional periods by a letter from the rector/head of the entity to the bank, requesting an extension and including supporting reasons.