Skip to main content
  • 300.2.1 Non-Banking GCC Companies Not Residing in Saudi Arabia

    • 300.2.1.1 Current Accounts and Deposits for Business and Credit Purposes

      Bank accounts shall be opened for GCC companies for business and credit purposes according to the following conditions and requirements: 
       
      1.A copy of the license/commercial register issued by the government authority in the GCC country of residence.
       
      2.Submitting a request to open a bank account stating the business purpose of the account which should conform to the purposes of the company according to the memorandum of association and license.
       
      3.Verifying the national ID(s) of the owner(s) of the GCC establishment (excluding listed joint stock companies).
       
      4.The memorandum of association and its annexes which clearly indicate the composition of both the capital and the establishment’s management and that the ownership of GCC citizens (natural or juristic) exceeds 50% of the company's capital.
       
      5.Verifying the IDs of the members of the board of directors, provided that the majority of members shall be GCC citizens or from GCC establishments.
       
      6.Copies of IDs of the authorized managers and their nationalities.
       
      7.A copy of the authorization issued by the board of directors authorizing persons to manage the bank account unless specified in the memorandum of association.
       
      8.The person authorized to manage the bank account shall be a GCC citizen. If the purpose of the account is to receive facilities from a bank licensed to operate in Saudi Arabia, the person authorized may be a non-GCC individual working in the company and residing in the company's country.
       
      9.Approval of the Saudi embassy in the company’s GCC country for all the above requirements.
       
      10.The above documents shall be completed by the bank's employees directly by interviewing the clients personally (authorized persons) or by a national GCC correspondent bank residing in the country of the company. The correspondent bank shall verify that copies provided for all the required documents, even documents certified by the Saudi embassy, are true copies of the original documents. Deposit, withdrawal and transfer shall be carried out by the correspondent bank. Documents may be completed by a correspondent bank residing in the GCC country of the company that is one of the Saudi bank partners in capital and technical management or by the branches of Saudi banks in the GCC country. The final responsibility for the customer data shall rest with the bank operating in Saudi Arabia.
       
      11.Once the above documents are provided and the requirements satisfied, the bank shall apply the KYC principle.
       
      12.Approval of the CEO/general director and the manager of compliance department to open the account.
       
      13.The permission to open accounts includes all GCC companies and those carrying out commercial, industrial, service, agricultural and real estate businesses.
       
      14.Banks, money changers (other than correspondent accounts), investment companies, financial institutions, independent or affiliated investment funds, insurance companies, sole proprietorships and licensed shops are prohibited from opening bank accounts.
       
    • 300.2.1.2 Bank Accounts of GCC Juristic Persons for the Purpose of Trading in Securities Listed in the Saudi Stock Exchange

      Bank accounts may be opened for these juristic persons after carrying out and providing the following: 
       
       -An application for opening a bank account shall be submitted, specifying that it is for the purpose of investment in joint-stock companies shares or securities. The bank shall ascertain that the investment purpose conforms with the company’s objectives as specified in its memorandum of association and license. It shall also ensure that the company’s memorandum of association and articles of association are free of any restrictions that might prevent or limit the company’s ownership of shares of joint-stock companies.
       

      a. GCC companies:

      1.A copy of the license / commercial register issued by a competent government authority in the GCC country of residence and attested as a true copy of the original.
       
      2.The company’s articles of association or memorandum of association, or the decision issued by a shareholders’ association or the company partners, must provide that the company is allowed to invest in securities.
       
      3.Real beneficiaries holding ultimate control shall be identified and verified (as a minimum, a natural owner holding 25% as specified in the company’s memorandum of association and its annexes or according to the available data).
       
      4.A copy of the company’s memorandum of association and its annexes clearly showing the company’s capital structure and management and that the share of GCC citizens (natural and juristic) shall exceed 50% of the company capital.
       
      5.Verifying the identity of board members.
       
      6.Copies of IDs of the authorized managers and their nationalities.
       
      7.A copy of the authorization issued by the company’s board of directors empowering the persons concerned to manage accounts and investment portfolios, unless such authorization is included in the company’s memorandum of association.
       

      b. GCC investment institution:

      Documents of establishment which prove that the institution is owned by the government, including its memorandum of association, decision to form its board of directors, names of those authorized to manage the accounts and copies of their ID cards.

      c. Pension and social insurance organizations:

      Documents pertaining to the establishment of these organizations, board formation decision, names of those authorized to manage the accounts and their authorization decision as well as copies of their IDs.

      d. Affiliated investment funds:

      1.A copy of the fund’s or the managing fund’s articles of association or memorandum of association and any amendments thereto.
       
      2.Documents relating to the license to establish the fund, received either from a capital market authority or a central bank in a GCC Country.
       
      3.Names of the board members responsible for managing the fund and its policy.
       
      4.The resolution nominating those empowered to operate the fund and copies of their IDs.
       
      5.A copy of the fund’s or the managing fund’s memorandum of association and its annexes which clearly show the structure of its capital and its management and that the share of GCC citizens (natural or juristic) exceeds 50%.
       
      -The documents mentioned in a, b, c and d shall be received by directly meeting the customers (authorized persons) in person or through a GCC agent.
       
      -The AML/CFT form shall be completed by a GCC agent. However, when meeting customers (authorized persons) in person, in the case of a GCC company and an investment fund only, such form shall be completed by these two parties themselves as applicable.
       
      -The bank shall apply the KYC principle and exercise due diligence.
       
      -The bank shall obtain a declaration from a GCC agent in which the agent undertakes to provide the bank or the supervisory authorities in Saudi Arabia with any information about customer investors at any time upon request. This is in the case that the bank is dealing with a GCC customer through a GCC agent.