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  • Rules of Receiving Financial Transfers for the Purposes of Remittance or Currency Exchange Transactions

    No: 43098769 Date(g): 28/6/2022 | Date(h): 29/11/1443Status: In-Force

    Translated Document

    These Rules have replaced the rules issued by Circular No. (41056269), dated 12/09/1441H, corresponding to 05/05/2020G.

    Based on the powers granted to SAMA under its Law, issued by Royal Decree No. (23) dated 23/05/1377H, the Anti-Money Laundering Law issued by Royal Decree No. (M/20) dated 05/02/1439H, and the Rules Governing Money Changing Business issued by the Minister of Finance's Decision No. (1357) dated 01/05/1432H, and as part of SAMA's continuous efforts to develop the money exchange sector in the Kingdom, regulate cash transactions, and update certain procedures related to this activity, we inform you of the permission granted to money exchange centers to receive financial transfers from customers through available electronic payment methods, exclusively for currency exchange purposes, provided that the accompanying procedures and regulations are adhered to as a minimum.

    You will find the regulations for receiving financial transfers for the purposes of remittance or currency exchange, which replace the SAMA's instructions to money exchange centers issued under Circular No. (41056269) dated 12/09/1441H, which allowed the receipt of financial transfers through electronic payment methods for currency exchange purposes under specified regulations.

    • First: Introduction

      A. Objective

      These instructions aim to establish the minimum procedures that money exchange and remittance centers must adhere to when receiving funds from customers through electronic payment methods, for the purposes of remittance or currency exchange.

      B. Scope

      These instructions apply to all money exchange centers and remittance centers affiliated with banks operating in the Kingdom and subject to the supervision and oversight of SAMA.

    • Second: Regulations

      1. Money exchange centers and remittance centers affiliated with banks must allocate a separate bank account to receive financial transfers from customers for remittance and currency exchange purposes, provided that it is through one of the available electronic payment methods.
         
      2. Financial transfers can only be received from customers of money exchange centers who hold a membership. The membership must have a unified reference number linked to the customer's ID, and the transfers received into the bank account must be in Saudi Riyals.
         
      3. Money exchange centers are prohibited from receiving transfers from customers through banks or remittance companies outside the Kingdom for currency exchange purposes.
         
      4. Money exchange centers and remittance centers affiliated with banks must verify the identity of the transferring customer or their representative through official documents explicitly authorizing them to do so.
         
      5. Money exchange centers and remittance centers affiliated with banks are prohibited from transferring funds to customer accounts, except in cases where a transaction is canceled. In such cases, the exchange center must adhere to the following:
       a.No funds should be returned in cash.
       
       b.If the canceled transaction was made through available electronic payment methods, the amount should be refunded to the payment method used. If the transaction was made using a point-of-sale system, the refund should be made to the card used.
       
       c.Amounts resulting from canceled or unclaimed transactions (currency/exchange) must be returned to the customer’s account within three working days. The exchange center must have a clear plan for refunding the amount in coordination with the bank where the exchange center’s account is held.
       
      1. Money exchange centers and remittance centers affiliated with banks must agree in advance with customers who wish to transfer funds to the exchange center's account on transfer fees and exchange rates before completing the transaction, and this must be documented.
         
      2. Money exchange centers and remittance centers affiliated with banks must educate customers who wish to transfer funds to the bank account about the necessity of specifying the transaction amount and the currency to be purchased during the transfer. The education must be provided, at a minimum, through instructional signs and membership terms.
         
      3. Money exchange centers and remittance centers affiliated with banks must apply due diligence measures in accordance with the legal requirements outlined in the Anti-Money Laundering Law, the Law on Combating the Financing of Terrorism, and their implementing regulations, as well as comply with all relevant laws, instructions, and SAMA circulars.
         
      4. Money exchange centers and remittance centers affiliated with banks must continuously work on developing their internal procedures in this regard, in a manner consistent with the nature and size of their operations and in line with best practices.