In reference to SAMA's receipt of the Ministry of Justice telegram No. (446842135) dated 18/10/1444H, which includes a request to instruct banks to accept conciliation documents issued by the Reconciliation Center that confirm custody, based on the working rules and procedures in reconciliation offices issued by the Minister of Justice's decision No. (5595) dated 29/11/1440H.

Therefore, SAMA emphasizes that all banks must accept the conciliation documents issued by the Reconciliation Center that confirm custody, applicable for banking transactions that the custodian can conclude on behalf of the ward. The documents can be verified electronically through the Taradhi Platform Portal.

In reference to Royal Decree No. (M/40) dated 26/05/1443H, approving the Kingdom of Saudi Arabia's accession to the Hague Convention on the Abolishment of the Requirement for authentication  of Foreign Public Documents ("Apostille"), and to the Ministry of Foreign Affairs telegram No. (226041-44-001) dated 24/08/1444H, which included a request to accept the "Apostille" certificate as an accredited certification for the aforementioned documents without the need for further authentication by the Ministry of Foreign Affairs or relevant diplomatic and consular missions. Additionally, the telegram outlined a mechanism for verifying the validity of the certificate, aligning with the goals of the convention to replace the traditional authentication process with a streamlined procedure through the issuance of a certificate called "Apostille."

Accordingly, SAMA confirms to all banks that there is no need for authentication by the Ministry of Foreign Affairs or relevant embassies for documents issued abroad that bear the "Apostille" certificate, provided that they meet the formal requirements set forth in the convention. The validity of the certificate can be verified independently through any of the following means:

1. The Quick Response (QR) code or contact information available on the "Apostille" certificate.

2. The website of the Hague Conference on Private International Law 

Further to SAMA's instructions issued via Circular No. (43010538) dated 02/02/1443 H regarding the acceptance of the digital ID on Absher platform and Tawakkalna application, we inform you that the Ministry of Interior has launched an electronic copy of the (Family Register for Citizens) document issued by the (Absher) platform on the (Tawakkalna) application in partnership with the Data and Artificial Intelligence Authority, in order to facilitate citizens by enabling the relevant authorities to view the family registry data by simply reviewing and reading the binary code (QR code).
 

It is required that all financial institutions accept the (Family Registry for Citizens) document available through the (Absher) platform and the (Tawakkalna) application for transactions that do not require a physical copy of the document, subject to the same regulations and provisions applicable to hard copies of these documents.

Further to SAMA's instructions issued via Circular No. (42009007) dated 18/02/1442H, which emphasize the adopting the self-employment certificate and enabling its holder to open bank accounts to manage their financial operations, and referring to the continuous challenges faced by holders of this document when opening bank accounts through branches, such as being directed to electronic channels to open an account, with some banks’ electronic channels lacking the option to open an account electronically for this category, which enable them to practice their specific business specified for them in the Freelance Work Document.

Therefore, SAMA emphasizes that all banks and financial institutions must accept the opening of bank accounts for holders of the Freelance Work Document in accordance with Rule No. (300-1-1-4) of the Rules for Bank Accounts, whether through branches or electronic services. They should also facilitate the provision of electronic payment methods for them through point-of-sale devices or other means and ensure that branch employees are informed about enabling holders of the self-employment certificate to open accounts within one working day after completing the requirements outlined in the aforementioned rule.

In reference to the launch of the Ministry of Interior's electronic version of the national identity in the (Absher/Individuals) application, under the name of the digital identity, in cooperation with the National Information Center in order to facilitate citizens to verify their identities by allowing the beneficiary to view the national identity data electronically, and to adopt the digital identity of citizens from the Absher platform which includes a Quick Response (QR) code as a personal identification card, subject to the provisions outlined in the Civil Status Law and its Executive Regulation regarding the proof of the identity of the holder, as well as its acceptance in the Tawakkalna application.

I would like to inform you that financial institutions must accept the electronic identity for existing customers in transactions that do not require taking a copy of it. It is also necessary to continue assessing and reviewing the risks that may arise from relying on the electronic identity and to establish a suitable mechanism for obtaining a copy of the identity electronically for transactions that require a copy.

According to Circular No. (43075379) dated 14/08/1443H, and in reference to the launch of the electronic version of the (Family Registry for Citizens) document issued from the (Absher) platform on the (Tawakkalna) application in collaboration with the Data and Artificial Intelligence Authority; this facilitates citizens by enabling relevant entities to access Family Registry data by simply scanning the QR code.

It is also required that all financial institutions accept the (Family Registry for Citizens) document available through the (Absher) platform and the (Tawakkalna) application, within the scope of operations that do not require a copy of the document, subject to the same regulations and provisions applicable to printed copies of these documents.

In reference to the electronic services provided by the Chambers of Commerce for the authentication of documents, certificates, and records issued by the membership sector through the chamber's website.

SAMA emphasizes that all banks operating in the Kingdom must accept all documents and records authenticated electronically by the Chambers of Commerce. Verification of the authentication can be done through the electronic links provided in the accompanying list.

List of Chambers and Electronic Links

*Please refer to Circular No. 53699/41 dated 2/12/1439 H regarding the electronic verification service for documents, certificates, and authenticated records from the Riyadh Chamber.

Based on SAMA's supervisory and regulatory role over banks operating in the Kingdom in organizing and protecting the sector, and to avoid the exploitation of similar names among commercial entities for the purpose of obtaining banking facilities or products.

Therefore, SAMA emphasizes that banks operating in the Kingdom must adopt the specified English name in the translated commercial registry service issued by the Ministry of Commerce when entering into salary transfer agreements with customers from commercial institutions and companies.

 For your information and action accordingly within one month from its date.

Referring to Rule No. (300-1-5-2) concerning private associations, Rule No. (300-1-5-3) concerning private foundations, and Rule No. (300-1-5-6) concerning cooperative associations and funds, as stated in the banking account rules communicated by SAMA (67/65681) dated 1440/11/01 H, and referring to SAMA Circular No. (371000010677) dated 1437/01/26 H regarding the acceptance of documents from social development centers upon fulfilling the requirements of the aforementioned rules.

We inform you that social development centers are authorized by the Ministry of Human Resources and Social Development to approve the election, formation, reformation, and extension of the boards of directors of charitable associations and institutions, as well as cooperative societies, and to approve the persons authorized to sign on behalf of these entities' accounts.

Accordingly, we would like to confirm the acceptance of documents from social development centers in the Kingdom upon fulfilling the requirements of the aforementioned rules, as follows:

1. Decision to form, re-form, and extend the boards of directors of charitable associations and institutions, as well as cooperative societies.
2. Approval to sign on the accounts of charitable associations and institutions for individuals other than those designated in the aforementioned rules, as well as opening sub-accounts for expenses or identifying those authorized to sign on them.

The instructions of SAMA communicated via email on 5/5/2020G regarding the approval of the freelance work document and enabling its holder to open bank accounts to manage their financial operations. These instructions are effective from the date they were communicated to you via email.

Referring to" Rule No. (300-1-1-4) for bank accounts of Freelance Job Permit Holder contained within Account Opening Rules reported under SAMA's Circular No. (65681/67) dated 01/11/1440H 

SAMA emphasizes on the importance of accepting the opening of bank accounts for holders of these documents in accordance with the provisions of the above-mentioned rule. The validity of these documents can be verified through the Freelance platform at the following link: (Freelance.sa), through the QR Code shown on the document, or through technical integration with the Freelance Portal. 

Attached are the instructions from SAMA communicated via email on 22/03/2020G regarding the acceptance of electronic powers of attorney, which are effective from the date of notification to you via email.

Referring to the instructions from SAMA communicated through Circular No. 18626/67 dated 24/03/1440H regarding the Launch of Electronic Powers of Attorney Service provided by the Ministry of Justice, which allows beneficiaries to issue the powers of attorney electronically  without the need to visit notary offices or notaries, and that the issuance of paper deeds for the powers of attorney has been canceled, with their information stored electronically and made available for verification through the ministry's website. Additionally, the (Wathiq) service allows for the electronic verification of the powers of attorney in accordance with the Electronic Transactions Law issued by Royal Decree No. (M/18) dated 8/3/1428H and its implementing regulation.

Given the observed requests from some banks for paper powers of attorney from their customers, which does not align with the aforementioned instructions, SAMA confirms that all banks operating in the Kingdom must comply with the acceptance of electronic powers of attorney and verify them through reliable means.

Referring to the launch of Ministry of Justice's service "Electronic Service of Verdicts and Terminations" starting from 17/10/1440 H gradually in the courts, which allows beneficiaries to receive verdicts and termination certificates electronically via a text message to their mobile phones without the need to visit the court. The issuance of paper verdicts for rulings and terminations has been discontinued, with the information being saved electronically and made available through the electronic verification means provided by the ministry to all government entities via the Government Integration Channel (GSB) under the Government Electronic Transactions Program (Yesser) through the service (Verification of Judgment Verdict), and for other entities through the Najiz portal, with automatic responses from the ministry's systems confirming the accuracy of the information, status, and details of the verdict, as well as recording the verification information, the entity that conducted the verification, and the result in the ministry's systems for future reference.

Accordingly, SAMA emphasizes the importance for all banks operating in the Kingdom to accept the electronic verdicts issued as mentioned above and to verify them through the available means referred to above. It is noted that SAMA will take legal action in the event of non-compliance with these instructions.

Further to SAMA's instructions issued under Circular No. 381000053455 dated 17/05/1438 H regarding procedures of the Ministry of Commerce and Investment for the establishment of institutions and companies , as well as the conditions and requirements for obtaining a commercial register and company bylaw, and to the efforts of the National Competitiveness Center to improve the Kingdom's ranking in global competitiveness indicators, SAMA is keen to achieve the first rank in the "Starting a Business" indicator, which is one of the key measures in the World Bank's Doing Business report.

SAMA would like to confirm that there are no prior requirements for establishing limited liability companies, partnerships, professional companies, or limited partnership companies, including the opening of bank accounts. The deposit of capital is no longer a condition for obtaining commercial registrations for these companies, enabling entrepreneurs to establish these companies easily and without any prior requirements, while adhering to the provisions set forth in the banking account rules in this regard.

Further to the instructions issued by SAMA under Circular No. 371000002391 dated 7/1/1437 H regarding urging banks operating in the Kingdom to participate in "Qawaem" program prepared by the Ministry of Commerce and to rely solely on the reliable financial statements available in this program, which aims to enhance and increase work efficiency, benefit from deposited financial statements, and strengthen the credibility and reliability of accounting information, in addition to raising the level of transparency for commercial entities.

Given the program's contribution to improving the quality and reliability of accounting information, which is considered one of the main sources for assessing credit risks for commercial entities, SAMA emphasizes that all banks operating in the Kingdom must commit to using the "Qawaem" program as a source for obtaining the financial statements of commercial entities required to be deposited in the program before granting any credit facilities or during the periodic internal update process for assessing credit risks.

For your information and action accordingly as of 16/8/2019.

Referring to the letter from His Excellency the Minister of Justice, No. 748034/40, dated 3/3/1440 H, which mentions the ministry's efforts to develop and improve the quality of services provided to beneficiaries and enhance their reliability to support the ministry's objectives in the electronic transformation of notarization services.

I would like to inform you that the Ministry of Justice launched the Electronic Power of Attorney Service on Sunday, corresponding to 10/3/1440 H. This service will allow beneficiaries to issue Powers of Attorney electronically without the need to visit notary offices or notaries. The issuance of paper deeds for the Powers of Attorney has been cancelled, and their information will be stored electronically and made available for verification through the ministry's website. Additionally, the (Wathiq) service provided by Thiqah for Business Services will allow for the electronic verification of Powers of Attorney in line with the Electronic Transactions Law issued by Royal Decree No. (M/18) dated 8/3/1428 H and its Implementing Regulation.

I hope to ensure compliance with the acceptance of electronic Powers of Attorney and to verify them using the available methods mentioned above.

Referring to the electronic services provided by the Riyadh Chamber for verifying and authenticating documents, certificates, and records through the E-SERVICE portal.

We inform you that the Riyadh Chamber is in the process of fully transitioning to electronically authenticating documents, certificates, and records, replacing the previous authentication method (security sticker) available through the link mybusiness.chamber.sa. Accordingly, SAMA emphasizes the necessity for banks operating in the Kingdom to adopt the electronic authentication method and to develop internal procedures and policies to align with the introductory guide from the Riyadh Chamber.

In reference to the Ministry of Commerce and Investment telegram No. 30417 dated 05/06/1439 H regarding some amendments to the documentation of companies' bylaws, allowing these contracts to be documented electronically for limited liability companies with Saudi partners (not minors) or a Saudi individual or resident registered with a residency number.

SAMA confirms that finance companies must accept companies' bylaws for limited liability companies that have been documented electronically and do not contain notarization stamps but only the stamp of the Ministry of Commerce and Investment. Verification of the incorporation contract data should be conducted using the currently applicable service used by banks and financial institutions operating in the Kingdom or by visiting (Aamaly) Magazine at this link (attached is a model of company bylaw for reference).

In reference to the Ministry of Commerce and Investment telegram No. 30417 dated 05/06/1439 H regarding some amendments to the documentation of incorporation contracts, allowing these contracts to be documented electronically for limited liability companies established by Saudi partners (not minors) or a Saudi individual or resident registered with a residency number.

SAMA emphasizes that banks must accept incorporation contracts for limited liability companies that have been documented electronically and do not contain notarization stamps but only the stamp of the Ministry of Commerce and Investment. Verification of the incorporation contract data should be conducted using the currently applicable service used by banks or through the "My Business" portal via the link provided in the incorporation contracts (attached is a sample incorporation contract for reference).

In reference to SAMA Circular No. 37100018071 dated 12/02/1437H and Circular No. 381000025290 dated 06/03/1438H regarding the use of the electronic service approved by the National Information Center to verify customer identities electronically.

SAMA would like to emphasize that utilizing the aforementioned electronic services enhances the support and effectiveness of the supervisory process in the banking sector, ensuring security requirements and continuous monitoring to receive appropriate real-time alerts whenever there is a change in customer data. Additionally, there is no need for the customer to visit the bank to verify their identification when renewing or updating their account, provided that the bank verifies identity information using the electronic services mentioned above. The bank must comply with all other regulatory requirements and assess risks to determine the necessity of further documentation.

SAMA received the circular of H.E. the Governor of the General Organization for Social Insurance No. 37441, dated 27/06/1437H, addressed to all ministries and government agencies. The circular states that in an effort by GOSI to provide possible electronic services to employers that enable them to obtain GOSI services electronically without the need to visit GOSI offices in order to save time and effort on employers, the electronic certificate issuance service will be launched for employers through the employer’s account on GOSI website. Without the need for the employer to revert to GOSI. Note that this certificate is considered an official document that does not require authentication or signature.

The entity requesting this certificate shall verify its authenticity by accessing GOSI website through the link gosi.gov.sa/portal/web/guest/238, and you will find accompanied by a sample of this certificate.

On 03/07/1437 H, corresponding to 10/04/2016 G, the electronic certificate issuance service for employers was launched through the employer’s account on GOSI website.

In reference to the Ministry of Commerce and Investment letter No. (23475) dated 05/05/1438 H, which refers to Ministerial Decision No. (22895) dated 03/05/1438 H, amending Ministerial Decision No. (817) dated 19/07/1417 H regarding the identification of certificates, documents, and papers issued and certified by the chambers of commerce and industry in the Kingdom. The decision included the removal of the requirement for an official stamp to authenticate certificates, documents, and papers issued by private sector establishments. Also, in referring to the letter of Ministry of Commerce and Investment No. (16266) dated 28/03/1438 H, which refers to the Royal Order No. (11154) dated 29/02/1437 H, approving the recommendations of the Economic and Development Affairs Council regarding the competitiveness of the Kingdom's investment environment, and the proposed recommendations to enhance competitiveness and facilitate the start of business activities, including the cancellation of the official stamp requirement for institutions and companies.

 It has been observed that some financing companies are requesting the official stamp of institutions and companies on the documents submitted during financing transactions without a regulatory requirement for this, which negatively impacts the competitiveness of the investment environment in the Kingdom.

Therefore, SAMA emphasizes to licensed financing companies not to request the official stamp of institutions and companies on the documents submitted during financing transactions, without compromising the requirements of the Know Your Customer principle.

Based on Article 21 of the Finance Companies Control Law and Article 22 of the Implementing Regulations of the Finance Lease Law, and in reference to Articles 13 and 14 of the Regulation of the Economic Cities Authorities issued by Royal Order No. A/19 dated 10/03/1431 H, which states that: "The Authority shall issue a certified official document for each owner or beneficiary of a property registered in the real estate records in the economic city. The document shall fully record its data in the notary records of the Authority and be certified according to the rules for issuing ownership documents approved by the Authority. The Authority requires every owner or beneficiary of a property or those disposing of it within the economic cities to present the necessary documents and papers."

Therefore, all real estate financing companies must accept the ownership document issued by the Authority of Economic Cities for any property or land owner within the economic cities as an officially recognized ownership document that serves in place of the property title recognized outside the economic cities.

SAMA received a letter from the Ministry of Commerce and Industry No. 267/3/1/39/A dated 13/01/1436 H, which states that the ministry is fully prepared to launch the new version of the electronic commercial register, which will be applied across all regions of the Kingdom during the month of November 2014, in an effort to develop its electronic services to the business sector and to provide convenient and easy services for all customers and beneficiaries. Through this new version, the commercial register certificate will be issued as a document with electronic encoding (QR code), so that it can be printed by the applicant without the need to obtain a traditional commercial registration certificate.

Therefore, we hope to adopt the electronic commercial register certificate as an official document. It can be verified by entering the registration number or by scanning the QR code through the ministry's website.

SAMA received a letter from the Governor of the General Organization for Social Insurance No. 192359/5/M dated 19/01/1434 H, stating that the General Organization for Social Insurance has launched a new service called (Shahadah), which allows for the electronic issuance of duration certificates. As of 17/01/1434 H, subscribers or beneficiaries can print the certificate electronically by accessing their account on the General Organization for Social Insurance website, and banks can verify the validity of these certificates through the organization's website. The General Organization for Social Insurance wishes to inform banks to accept these certificates.

Therefore, we would like to inform you that SAMA has no objection to accepting the issuance of duration certificates and verifying the validity of the data on these certificates electronically through the General Organization for Social Insurance website.

SAMA received a copy of the circular of His Royal Highness the Minister of Interior Telegram No. 20882/C dated 07/12/1428 H stating that the family book has been developed to become the size of the national identity card under the name of "Family Record", where it can accommodate the addition of (11) family members whose names are printed on the front and back sides of the record, and in the event that the number of family members is more than that, the names are printed on an additional copy of the family record bearing the same data and photo of the owner of the record. The new version adds more security protection, so that the photograph of its holder is printed, in addition to adding many features in it, and its small size was taken into account for ease of carrying with clarity of data. His Highness directed the approval of the acceptance of the family register with the continuation of the family book for those who did not obtain the family register until instructions were issued to determine the expiry date of the family book.

 With reference to the second update of the rules for opening bank accounts in commercial banks and the general rules for their operation in commercial banks reported to banks operating in the Kingdom under circular No. 5555/BCI/95 dated 08/02/1428 H, and with reference to Rule No. (200-1-1) of the third – procedural rules for Saudi citizens, we inform you of the adoption of the acceptance of the (family record) as an identification document for citizens in cases where it has been stipulated to accept the (family book) as an identification document, in accordance with the above-mentioned rules.

In reference to the instructions contained in the rules for opening accounts in commercial banks regarding the opening of accounts for residents, which state that the bank must match the name on the residency permit with that written in the passport when opening the account for a resident. If there is a discrepancy, the account should not be opened, and the client should be advised to make corrections through the Passport Department.

We would like to inform you that recently issued magnetic residency permits include only the binary name of the expatriate. Therefore, there is no objection to accepting the opening of accounts with these residency permits for residents, provided that the first and second names contained on the residency permit match those in the passport. The date of account opening should be considered as a substitute for the residency issue date, and it is essential to maintain the field for the validity of the identity as a time for beginning of freezing and updating the account.

SAMA received a letter from the Secretary-General of the Council of Saudi Chambers regarding the restriction of authentication of signatures from companies and private sector institutions to the Chambers of Commerce only, and the non-acceptance of any document unless it has been authenticated by the Chambers of Commerce, as stated in the circular issued by His Royal Highness the Minister of Interior in this regard.

Under Circular No. (42085168), dated 2/12/1442H, corresponding to 11/07/2021G, SAMA emphasizes that all banks operating in the Kingdom must accept all documents and records authenticated electronically by the Chambers of Commerce.

SAMA received the letter of HE the co-chairman of the Board of Directors of the US Saudi Arabian Business Council No. M/126/97 dated 11-6-1418H, based on the approval of the Council of Ministers, in its decision No. 5/B/1788 dated 6-2-1418H, to grant the Council the power to certify shipping documents for US goods exported to the Kingdom of Saudi Arabia, which is now practiced by the US Arab Chamber of Commerce.

Consequently the certification by the Council of shipping documents for US exports to the Kingdom of Saudi Arabia shall be applicable instead of the certification by the US Arab Chamber of Commerce as of 3 November, 1997. Saudi embassies and consulates in the USA will not accept the certification of the US Arab Chamber of Commerce after this date.

In reference to the Central Bank's supervisory and regulatory role over the financial institutions under its oversight, based on the powers granted to it under the Banking Control Law issued by Royal Decree No. (M/5) dated 22/02/1386H, the Cooperative Insurance Companies Control Law issued by Royal Decree No. (M/32) dated 02/06/1424 H, the Financing Companies Control Law issued by Royal Decree No. (M/51) dated 13/08/1433H, the Rules governing Money changing Business issued by Minister of Finance Decision No. (1357) dated 01/05/1432H, and Council of Ministers Decision No. (266) dated 02/05/1440H regarding SAMA's authority to supervise and regulate the payments sector. Additionally, referring to Royal Decree No. (M/106) dated 10/09/1440 H approving the Premium Residency Permit Law.

SAMA would like to confirm the acceptance of the Premium Residency, both (permanent and temporary), issued by the Premium Residency Permit Center as an approved identification allowing its holder to benefit from the financial products and services offered by financial institutions. (Attached is the model of the permanent and temporary Premium Residency Card).