100. General Instructions for Opening Bank Accounts
1. Customer ID
- The bank must obtain copies of all required documents and compare them with their originals in order to ensure conformity and authenticity. All copies of documents must also be stamped to confirm their authenticity.
- The bank must obtain customer’s signature on the photocopy of his/her ID, confirming the authenticity of the photocopy and the original. The bank must ensure that no transaction shall be carried out for any customers before examining the customer’s ID and verifying its validity as prescribed for the identification documents of customers set forth herein.
- The bank must identify and examine persons authorized to sign for bank accounts.
2. Documents Required to Open a Bank Account are as Follows
a. An original copy of the ID of natural or juristic customer.
b. Account opening agreement form which is prepared according to the requirements hereof. The agreement should include, as a minimum, the following:
- Customer's personal data: Name, nationality, ID number, validity date of ID, national address, occupation, and contact details.
- Financial information: Source of income (primary/additional), the expected size of financial movement on the account (deposits/withdrawals), and the purpose of opening the account.
- Terms and conditions of the agreement between the two parties (i.e. the bank and the account holder), along with customer signature thereon placed in the designated space.
- A specimen signature (personal signature, thumbprint, or personal stamp) which the customer will use for his/her transactions with the bank.
- Details and identity document of the guardian or representative and the like, and their signatures.
- A declaration by the customer of the following:
■ That he/she is not legally prohibited to be dealt with, that all information and data he/she has given is true and reliable, and that he/she has understood the terms, conditions and other provisions of the account opening agreement.
■ That he/she would be liable before the competent authorities for the funds deposited in his/her account by him/her personally or deposited by others with or without his/her knowledge, whether or not he/she used such funds, and when he/she failed to formally report to the bank the existence of such funds. That the funds deposited are from legal sources, that he/she is liable for their being free from any forgery or counterfeiting, and that if the bank receives from him/her (the customer) any illegal or counterfeit notes, he/she will not be refunded or compensated.
■ That he/she commits himself/herself to updating his/her personal data when requested by the bank or from time to time (as specified by the bank), provided that the interval shall not exceed 5 years. The customer also undertakes to provide a renewed ID before the expiration of its existing validity, and he/she acknowledges that if he/she fails to do so, the bank will freeze his/her account.
■ That the bank reserves the right to freeze the account or an amount of money credited to the account if the bank suspects that the bank account is being used illegally or that the amounts deposited are from financial fraud.
■ That he/she is the real beneficiary. The bank should verify such information.
- The bank must ensure that the account opening agreement (for juristic persons) contains, at a minimum, the following information:
■ Information on members of the board of directors.
■ Information on managers of the juristic person as per its status.
■ Information on authorized signatories, and their specimen signatures.
■ Verification of the ownership structure to identify the actual beneficiary, in addition to the structure of control and ownership.
3. Rules for Remote Opening of Bank Accounts for Natural Persons
This rule has been amended according to the circular No. (42009017), Dated 18/02/1442H, corresponding to 05/10/2020G.1. Opening bank accounts remotely for customers with existing accounts in the same bank is not allowed.
2. The service is provided for individual citizens (national ID holders) and residents (Iqama holders).
3. The bank is responsible for verifying the identity of customers by using documents, data or information acquired from a reliable and independent source.
4. Risks associated with such accounts shall be assessed, policies and procedures for mitigating the associated risks shall be established periodically, and preventive measures to mitigate risks commensurate with the risk assessment results shall be developed and implemented.
5. The bank must set a clear and secure mechanism to activate the ATM card used for the bank account.
6. Documents and requirements referred to in Paragraph (2) above must be submitted and fulfilled by the customer, except the following:
■ An original copy of the ID of the natural or juristic customer.
■ A specimen signature (personal signature, thumbprint, or personal stamp) that the customer will use for his/her transactions with the bank.
4. Rules for Remote Opening of Bank Accounts for Sole Proprietorships
This rule has been added pursuant to the circular No. (41027515), Dated 20/04/1441H, corresponding to 17/12/2019G, and amended according to the circular No. (42009017), Dated 18/02/1442H, corresponding to 05/10/2020G.1. The bank is responsible for verifying the identity of the enterprise and its owner by using documents, data or information acquired from a reliable and independent source.
2. Risks associated with such accounts shall be assessed, policies and procedures for mitigating the associated risks shall be established periodically, and preventive measures to mitigate risks commensurate with the risk assessment results shall be developed and implemented.
3. The bank must set a clear and secure mechanism to activate ATM card used for the bank account.
5. Rules for Remote Opening of Bank Accounts for Resident Corporations
This rule has been amended according to the circular No. (42009017), Dated 18/02/1442H, corresponding to 05/10/2020G.1. The bank is responsible for verifying the identity of the corporation by using documents, data or information acquired from a reliable and independent source. The following at least shall be checked: The name and legal form of the corporation, the powers that regulate and govern its work, the corporation's capital, its owners and the ownership percentage of each owner (except for the partners of a listed joint-stock company), the members of the board of directors if any, the directors, and the persons authorized to open and operate the accounts.
2. Appropriate standards must be set to manage risks associated with these accounts before approving the opening of such accounts in order to avoid opening an account for a company or a person with whom dealing is prohibited, for an incompetent person or the like.
3. The bank must set a clear and secure mechanism to activate the ATM card used for the bank account.
6. Rules for Remote Opening of Bank Accounts for Foreign Companies According to Foreign Investment Law
This rule has been added pursuant to the circular No. (43058341), Dated 01/07/1443H, corresponding to 02/02/2022G.1. Verifying the identity of the company by using documents, data or information acquired from a reliable and independent source as follows: The commercial register and the license obtained from the Ministry of Investment (MISA), the name and legal form of the company, the powers that regulate and govern its work, the capital, the owners and the ownership percentage of each one, and the members of the board of directors/executives.
2. The service shall only be provided to the general director of the company whose name and powers are stated in the company’s memorandum of association, including the opening and managing of bank accounts. Additionally, the identity of the general director shall be verified by using documents, data or information acquired from a reliable and independent source.
3. As an exception to Chapter 4 requirements concerning the operation of bank accounts, the authorized general director may operate the account with the passport, provided that the Iqama is presented after (90) days from the account opening date.
4. Risks associated with such accounts shall be assessed, policies and procedures for mitigating the associated risks shall be established and reviewed periodically, and preventive risk mitigation measures commensurate with the assessment results shall be developed and implemented.
7. Account Information Card
The bank must provide the customer (using any appropriate means) with account information, including the customer's name, account number and IBAN as evidence of opening the account.
8. Opening an Account without Making a Deposit
This rule has been amended according to the circular No. (46015210), Dated 06/03/1446H, corresponding to 09/09/2024G.The bank must agree to open an account for any customer if the required documents and conditions are submitted and satisfied. The bank must not require the customer to deposit any amounts as a condition for opening the account. If no amount is deposited in the customer account within a period of 90 days, then the bank must close such account. The exception is being made to government entities’ accounts that the Ministry of Finance (MOF) approves opening without the need to deposit any amounts for a period specified by the MOF, As well as the bank accounts for enforcement courts that are established for the purpose of collecting enforcement amounts.
9. Blind and Illiterate Customer Service and Dealing
- The bank must open an account for any blind or illiterate customers who request so. The bank must also provide the blind or illiterate customer with an ATM card, in addition to a checkbook upon his/her request. The blind or illiterate customer has the right to obtain any banking services (telephone banking and/or Internet banking), provided he/she has been advised of the terms and conditions governing these services. Further, his/her signature must be obtained in this regard, confirming that such services are provided for him/her upon his/her request and choice, that he/she is aware of the risks associated with the use of such services, and that he/she is legally liable for all dealings being conducted through such type of services.
- Both the blind customer and illiterate customer must present a personal reference to introduce them to the banking procedures taken and documents and papers required by the bank. Such personal reference shall have an ID, be 15 years old or older, and be able to read out to the blind or the illiterate and to act as a witness. The bank must obtain from the personal reference a copy of his/her ID, in addition to his/her national address and signature.
- Should the blind or illiterate customer request to go through banking procedures without the presence of the personal reference, then the banking procedures will be introduced to him/her by one of the customer service representatives at the bank. Such introduction will be certified by one of the branch’s authorized signatories (branch/operations manager), confirming that the customer has been introduced to all necessary information and terms and conditions for the opening of accounts as well as the account management controls and that such terms and conditions and controls have been read out to him/her.
- Both the blind customer and illiterate customer must provide a thumbprint and a personal stamp as his/her specimen signature. Should either of them wish to use the (manual) personal signature as a specimen signature, he/she will be permitted to do so. In this case, it should be documented that this procedure has been taken at his request and choice and on his/her own responsibility.
10. Foreign Currency Accounts
Customers may open accounts in any available foreign currency. They may deposit and withdraw funds in a foreign currency. If such foreign currency is not available, payments can be made in Saudi riyal. Normal fees and expenses involved in such transactions will be borne by the customer.
11. Multiple Bank Accounts
The customer may have more than one account at the same bank, provided that all accounts bear one Customer Information File (CIF) number. Using the same account number for a new customer is not permitted.
12. Presence of Customer
Subject to the provisions hereof, as a basic rule, no account should be opened for new customers without their presence at the bank. The exception is being made to cases where there are powers of attorney explicitly authorizing the opening of bank accounts and containing the personal information of both parties. Furthermore, this rule (the presence of customer) shall also be applied when updating Know Your Customer (KYC) details for the account.
13. Visiting the Customers in Exceptional Cases
In exceptional cases where the customer is unable to visit the bank for reasons beyond his/her control, the bank may delegate two or more of its staff (with different powers) to meet the customer on-site and obtain relevant information and documents as required herein. The bank must develop the appropriate procedures and policies to ensure correct implementation.
14. Transfer and Check Services
14.1 Outgoing Transfers and Sold Checks
Banks are not allowed to render outgoing transfer and sold check service except to customers maintaining accounts therewith. Customer number is sufficient in the Express Transfers System as a substitute for bank account for customers of this service only, provided that the bank, upon the initiation of membership, obtains the personal data of customers on a special form designated for this service and uses a separate file. In addition, the bank must obtain the customer specimen signature and valid ID certified by both the customer and the bank employee pursuant to these Rules. Customer Number should be based on the ID number. Moreover, the Transfers System should be subject to regulatory procedures for accounts, such as freezing, verification of the ID validity and customer’s name, and limits placed on concerned customers. Membership account shall also be linked to transactions monitoring systems.
14.2 Incoming Transfers and Purchased Checks
Incoming transfers and purchased checks may be accepted in the following cases:
- If the transfer or check is made or issued from an account with the bank to a natural or juristic beneficiary account in one of the branches of the same bank, the transfer or check may be paid in cash to the beneficiary or his/her legal agent.
- If the transfer or check is from a local bank to another local bank, then payment shall be from the account of transferor to the account of the transferee.
- If the transfer is coming from outside Saudi Arabia in the personal name of the beneficiary, money transferred shall be paid through a bank account only.
15. Time Period for Opening the Bank Accounts
This rule has been added pursuant to the circular No. (75362/67), Dated 27/12/1440H, corresponding to 28/08/2019G.Banks shall open bank accounts for natural and juristic persons, for whom no approvals from bank’s concerned departments are required, within one business day if they meet all bank requirements and within two business days for those who need approvals. The applicant must be informed in writing of any missing or additional requirements upon application.